Small trades push NZX activity up in July

Thursday 3rd August 2017

NZX trading activity rose in July, with a surge in the number of small trades.

The volume of cash trades on the NZX rose 23.6 percent to 151,613 in July from the same month a year earlier, while the total value traded rose 2.7 percent to $3.5 billion, Wellington-based NZX said in its monthly shareholder metrics. The number of trades worth less than $50,000 increased 25.4 percent to 142,623, accounting for 94 percent of the total volume.

No new capital was raised through IPOs or compliance listings in the month, while $550 million was raised in new debt listings. A total of $362 million was raised by existing issuers across 14 events in July, including $219 million of equity and $143 million of debt.

NZX said last month that if the current relatively subdued capital raising and securities trading conditions persist, it expects profit to be in the middle of its forecast for 2017 annual earnings before interest, tax, depreciation and amortisation of between $27 million and $30 million, but if conditions improve it would deliver a result at the upper end. Its annual earnings are due on Aug. 15.

The company is planning to carry out an extensive review of its business, which it says will help determine its future shape and influence the strategies it will adopt in growing the business and New Zealand’s capital markets for the long-term. Consultation is set to start in the third quarter.

NZX has flagged that it may simplify its structure to combine the main NZSX board, the NZAX alternative market which is being phased out, and its replacement market for small caps, NXT.

The benchmark S&P/NZX 50 Index was 10 percent higher in June compared with its level a year earlier, closing the month at 7,611.

NZX shares last traded at $1.17, and have gained 11.4 percent this year.

(BusinessDesk)

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