Sharechat Logo

Outperforming NZX needs to lift its global profile, CEO Peterson says

Thursday 13th September 2018

Text too small?

NZX chief executive Mark Peterson says the exchange can't rely solely on its record-breaking performance this year to build its international profile. 

The benchmark S&P/NZX 50 index hit a record in late August and has gained 9.5 percent so far this year, compared to an 8.1 percent increase on the S&P 500 in the US and a 1.3 percent increase on the S&P/ASX 200. The UK's FTSE 100, Hong Kong's Hang Seng and Japan's Topix have all posted declines. 

The benchmark index's 4.4 percent gain in August was the best for a reporting season in 18 years. However, Fisher Funds Management portfolio manager Sam Dickie said that wasn't justified given analysts downgraded future earnings by 2 percent. 

"A number of companies were slightly ahead of their revenue targets, however, higher costs meant that some fell just short of their earnings forecasts," Dickie said in September update by NZX-listed Kingfish. 

The stock market operator yesterday announced a new memorandum of understanding with Nasdaq to investigate ways to develop closer links with the tech-heavy bourse operator, adding to similar deals it has made with exchanges in Hong Kong and Singapore. 

Speaking from New York, Peterson said the previous government's partial privatisation programme, known as the mixed ownership model, boosted New Zealand's international profile. But he said the local investment community knows more can be done. 

"We would probably all say there's more to do to create wider awareness of our market," Peterson told BusinessDesk. "We've had a lot of good performances from some very good companies in a stable jurisdiction. Those sorts of returns are highly sought after by investment managers - one of growth as well as yield."

International investors are often impressed by the domestic market, its governance and legislative and regulatory settings, but need time to understand it, he said. 

Peterson said he met with Nasdaq's chief executive and president and several senior executives who showed enthusiasm on several fronts. 

The stock market operators will initially examine ways to promote dual listings, depository receipts, exchange-traded funds and broader ways to develop market initiatives. That includes expanding an existing technology relationship beyond NZX's use of Nasdaq's X-stream platform. 

"We'll start with a few things to see where value might be created and see where that might go," he said. Nasdaq executives were interested in NZX's expanding suite of green bonds and the technology element of the MoU could see New Zealand used for early deployments of new services, he said. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZD headed for 0.6% weekly gain against greenback
PREVIEW: RBNZ tipped to keep cash rate at 1.75%, reiterate next move could be up or down
Sky TV hires Deloitte partner as fill-in CFO
Vector fined $3.6 mln in industry first
SIS Group to partner with Platform 4 Group
Dry weather cutting dairy production, boosting power costs
22nd March 2019 Morning Report
NZ dollar dips back below 69 US cents, focus shifting to RBNZ
Top Energy's geothermal expansion to cut lines charges
MARKET CLOSE: NZ shares rise on Fed restraint, local GDP growth; Auckland Airport slides

IRG See IRG research reports