NZX offers trial rebate on dual-listed trades to woo investors

Friday 1st August 2008

NZX, manager of New Zealand's stock exchange, today began a three-month trial of offering rebates on some trades of dual-listed securities to encourage activity in the local bourse.

The rebate is on trades on the NZX of ASX overseas and dual-listed securities, NZX said in a statement. In the trial, passive executions will be paid a 0.05 basis point rebate per trade. Currently, most trading of these securities by New Zealanders is via Australia, it said.

"The aim of this pricing change is to retain activity and grow liquidity on NZX Markets, offering a cost-effective model for those trading in these stocks," said Heather Kirkham, NZX head of strategy.

Total trades in the first half fell 7% to 288,653, while the value of trade fell 10% to NZ$15.1 billion, NZX said last month. Still, the exchange managed to lift earnings by keeping costs flat while sales rose.

Stocks on the NZX have a market value of about NZ$62 billion, which is dwarfed by the ASX, whose value was A$1.63 trillion, based on 2007 figures.

NZX stock fell 0.8% t0 NZ$7.65. The shares have declined 14% this year, better than the NZX 50 Index's 18% slide.

There are two 'dual full' listed ASX shares on the NZX, APN News & Media and Goodman Fielder, and 16 overseas listed, according to NZX data.

By Jonathan Underhill

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