NZ share market value jumped 24 percent in December from year earlier to reach 37.8 percent of GDP

Tuesday 7th January 2014

The value of equities on the NZX rose 24 percent in December from a year earlier to reach 37.8 percent of gross domestic product helped by the listing of $7.5 billion of new capital and a rally in prices that extended from 2012.

The market value of equity on the NZX rose to $82.2 billion last month while the value of debt securities fell 8 percent from a year earlier to $13.5 billion, according to NZX's monthly shareholder metrics.

The total number of issuers rose 4 percent to 155. There were 52 capital raisings in December, bringing the year's total to 270, including 25 related to employee share schemes. The NZX 50 Index rose 17 percent in 2013, building on 2012's 25 percent increase, and some investors say 2014 may bring a third year of gains, albeit of a lesser magnitude, given central bank stimulus is coming to an end.

In NZX cash market trading, the total volume of trades jumped 36 percent in December from the same month of 2012, the 16th straight month of gains, and average daily trades climbed about 30 percent to 5,347. Yet the value of trading dropped 21 percent to $2.9 billion and average daily value traded fell 25 percent to $143 million.

Total equity traded rose 38 percent to 104,728 in the month and the value fell 22 percent to $2.8 billion, while debt trades fell 4.7 percent to $2.2 billion and the value traded rose 29 percent to $90 million.

There were 166 equity securities listed on the NZX last month, down 0.6 percent from a year earlier, and 86 debt securities, down 11 percent.

On the NZX derivatives market, lots traded jumped 152 percent to 2,024 last month and open interest, a measure of activity and liquidity, soared 316 percent to 9,070.

NZX last traded at $1.25, 1 cent above the median price target in a Reuters poll of three analysts, which has a sell rating on the bourse operator's stock.

BusinessDesk.co.nz

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