Sharechat Logo

NZX trading lacklustre in June as value and volume tumbles

Tuesday 6th July 2010

Text too small?

NZX reported a drop in both the value and volume of trading last month, amid signs the domestic economic recovery is running out of puff.

The total value of trades was down 24% to $1.716 billion from June 2009, and the average number of daily trades slipped 18% to 1,994. Liquidity conditions in New Zealand and globally are still challenging, the company said in its operational report.

That comes as concerns about Europe’s sovereign debt weigh on financial markets and fears linger about the pace of the US economy, sapping investors’ appetite to return to the market after the global financial crisis in 2008. The NZIER quarterly survey of business opinion showed a fall in business confidence in the three months through June, as New Zealand’s recovery stumbled amid a fragile outlook for the economy.

One of the few bright spots for June was the 0.4% increase in the number of real time data terminals to 7,335, the fourth straight gain as onshore and offshore end users of market data such as commercial and investment banks continue to increase their focus on markets in New Zealand and Asia Pacific, NZX said.

The NZX’s indices performance notes that its NZX 50 at 2,972 is up 6% on June 2009, though on the calendar year it has fallen by the same amount.

There was only $35.48 million raised as new equity in the month, for a year to date total of $610 million. No new debt was raised through the NZX in June, though $1.18 billion has been raised during 2010.

Reporting back about its energy market, NZX said electricity prices fell steadily over the month. This is due largely to high hydro storage levels in the South Island, increasing storage levels in the North Island and stable oil prices. The total national hydro storage is currently at 74% of maximum, which is above normal for this time of year.

The energy hedge market trades fell 11% in June to 82 compared with May, while their total value slipped 6% across the same period to $3.49 million.

The shares rose 3.9% to $1.62 in trading today.

Businesswire.co.nz



  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:

NZ dollar falls, NZX suspends trading after 6.2 magnitude Wellington earthquake
Cash trading on New Zealand stock exchange surges in first half, driven by equities
NZX cash trading tops $5 bln as MightyRiverPower listing beefs up market
NZX cash trading value jumps by 58 percent in February from a year earlier
NZX looks to launch spot gas market in June
NZX full-year profit falls 32 percent
NZX boss Bennett rounds out 2012 filings with $1.87M share acquisition
Equity trading jumps in NZX cash market as NZX 50 nears 5-year high
NZX names Amelia Wong as head of cash markets
NZX rings more changes as PR chief Macrae exits