NZX trade volume advances in June, extending first-half gain

Wednesday 6th July 2016

Trading on New Zealand's NZX market rose in June, helping extend the first-half gains by more than a third.

The volume of total trades rose 18 percent to 164,908 in June from the same month a year earlier, taking the gain for the first six months of the year to 36 percent. The total value traded in June increased 36 percent to $4.3 billion, helping extend the gains in the first six months of the year by 27 percent to $22.7 billion.

The S&P/NZX 50 Index has reached record highs this year as the local bourse and its relatively high dividend yield catches the attention of international investors searching for returns in a low interest rate environment. The low rates have also spurred companies to return to the debt market for funding, injecting life into the local debt market.

Today's metrics show total equity trades in June were up 18 percent, for a 36 percent gain in value traded to $4.2 billion, while debt transactions rose 19 percent for a 36 percent jump in value traded to $144 million.

Some $590 million of new debt was listed on the NZX in June, taking the total in the first six months of this year to $3.15 billion, outpacing the $240 million value of initial public offerings and compliance listings in the month and $840 million in the year so far.

The number of equity securities listed on the NZX was unchanged at 172 in June from a year earlier, while debt securities were up 22 percent at 96 and other securities jumped 93 percent to 27.

NZX shares last traded at $1 and have slid 6.5 percent this year.

BusinessDesk.co.nz

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