NZX trading volume picks up in May, value of trade falls

Tuesday 2nd June 2009

Trading volumes on NZX’s equity and debt markets picked up in May, a sign that interest may be returning as companies improve their balance sheets amid signs the global economic slump may be past its worst.

Total trades rose 7% to 57,108 last month, according to NZX operating metrics released today. The total value traded slipped 20% to $2.2 billion.

Companies raised $545 million in new debt in May, more than twice the value of new equity at $209 million. Year-to-date, debt issuance is $2.6 billion to equity sales of $1.3 billion.

Fisher & Paykel Appliance is among companies raising capital via the issue of new shares, with China’s Haier taking a 20% stake in a deal that will help the New Zealand manufacturer repay debt and give it distribution in China. That follows Nuplex Industries, which sold shares at a deep discount to salvage its balance sheet and today announced plans for a one-for-four consolidation of its shares, reducing the number outstanding to 189.8 million from 759 million.

Among recent data to stoke optimism for the world economy, China’s Purchasing Manager’s Index showed manufacturing grew for a third month in May, while US consumer confidence rose to the highest level in eight months, according to the Reuters/University of Michigan final index of consumer sentiment.

Total trades on the NZSX market rose 7% to 53,030 while the value of trade slide 17% to NZ$2.06 billion. Trading on the NZDX market rose 14% to 3,841 while the value dipped 44% to $142 million.

On the NZAX market for smaller cap and start-up companies, total trades slipped 8% to 237, while the value traded jumped 30% to $1.6 million.

Shares of NZX were unchanged at $7.95 today, having soared 61% this year.

Businesswire.co.nz

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