NZX equity market trades climb 44% in February, debt market shows flickers of revival

Thursday 3rd March 2016

Cash market trades on the NZX jumped 44 percent in February from a year earlier, and while still dominated by equities, the debt market shows signs of reviving after a moribund few years.

Total trades rose to 149,073 last month, of which equity transactions climbed 44 percent to 146,365 for a 4.8 percent increase in value traded to $3.3 billion, according to the stock market operator's monthly metrics. Debt trades advanced 48 percent to 2,708, while value traded jumped 81 percent to $128 million.

The debt market got a shot in the arm last year when the New Zealand Local Government Funding Agency listed all six existing series of its bonds, representing a total $5.56 billion, while low interest rates around the world has encouraged companies to revisit the bond market to attract cheap funding.

There was $130 million of new capital raised through debt listings in February, the first new capital to be listed on the NZX this year. A further $98 million of secondary capital was raised in the month, of which $56 million was through debt.

The number of listed debt securities was up 6 percent from a year earlier at 88, while equities were down 0.6 percent at 171.

The value of debt listed on the stock market was $19.9 billion, or 8.2 percent of gross domestic product, in February, up 51 percent from a year earlier. The value of all equity was $108.6 billion, or 45 percent of GDP, up 7.1 percent from February 2015.

Trading typically picks up in February after a muted period during the summer holiday, and with company reporting season coming in the latter half of the month. The average daily value traded on the exchange was $169 million, 1.1 percent higher than a year earlier, and up from $114 million in January.

The S&P/NZX 50 index rose 1 percent in February to 6,231, and was 6 percent up from a year earlier.

NZX's SuperLife businesses expanded its funds under management by 11 percent to $1.42 billion in February from a year earlier, helping drive the Smartshares division's funds under management up 179 percent to $1.5 billion.

In soft commodities, lots traded of derivatives were down 18 percent at 10,851 in February from a year earlier, while open interest was up 69 percent at 26,457. Tonnage of grain traded was up 1.7 percent to 350,230 in the season to date.

NZX shares last traded at $1.02, and have decreased 4.7 percent this year.

BusinessDesk.co.nz

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