NZX trading volumes, values fall in November

Wednesday 3rd December 2014

The volume and value of cash trading on New Zealand's stock exchange fell in November from a year earlier, with activity down across the board.

The total number of trades dropped 16 percent to 118,248 in November from the same month in 2013, for a total value of trading worth $3.2 billion, down some 39 percent from a year earlier, the NZX said in its monthly shareholder metrics. The daily average trading value was down 37 percent at $162 million, even with $726 million turnover on Nov. 25 when changes to the global MSCI indices stoked activity.

Equity transactions fell 16 percent in November to 115,764, with the value traded at $3.1 billion, about 40 percent lower than the same month a year earlier, while debt transactions dropped 14 percent to 2,484 for a 15 percent decline in value traded to $131 million.

Still, in the year to date total trades were up 11 percent to 1.21 million, though value traded was down 18 percent at $32.2 billion.

New Zealand's stock market has benefited from renewed interest in recent years with the addition of the three state controlled power companies and the float of Fonterra Cooperative Group's shareholder fund in late 2012, which encouraged a raft of new listings and increased activity over the past 24 months.

The number of equity securities was up 8.8 percent at 173 in November from a year earlier, with the listing of Orion Healthcare the biggest addition to the bourse in November. Debt securities were down 3.5 percent at 82, while other securities increased 17 percent to seven.

Some $930 million of new capital was listed in November, taking the year to date total to $4.26 billion, though there were no new debt listings last month, leaving the year to date total unchanged at $1.63 billion.

Some $29 million of capital was raised by issuers in November, taking the year to date total to $1.7 billion.

The stock market's value of all equity closed at $94.1 billion, or 41.1 percent of gross domestic product, on Nov. 30, up 14 percent from a year earlier, while debt market instruments were valued at $13.1 billion, or 5.7 percent of GDP, down 2.5 percent from a year earlier.

The benchmark NZX 50 index rose 2.9 percent in the month of November, closing at 5424.447, and was up 13 percent from a year earlier.

Shares of NZX last traded at $1.21, and have slipped 2.4 percent this year. The stock is rated an average 'hold' based on three analyst recommendations compiled by Reuters, with a median price target of $1.29.

BusinessDesk.co.nz

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