NZX trading activity increases in November as equities touch fresh highs

Thursday 3rd December 2015

The volume and value of trading on New Zealand's stock exchange increased last month as the benchmark S&P/NZX 50 Index touched fresh highs.

The total number of trades jumped 7.7 percent to 127,393 in November from the same month a year earlier, while the value increased 1.1 percent to $3.3 billion, Wellington-based NZX said in its monthly shareholder metrics. Daily average trades advanced 2.6 percent to 6,066, while the daily average value slipped 3.7 percent to $156 million.

The NZX benchmark index climbed to record levels last month as demand for equities increased in a low interest rate environment. The Reserve Bank of New Zealand has cut interest rates three times so far this year and 13 of 14 economists polled by Reuters expect the bank to lower the official cash rate by 25 basis points to 2.5 percent at its upcoming meeting on Dec. 10.

The number of equity trades increased 7.5 percent to 124,411 in November from the year earlier month, while the value rose 1.4 percent to $3.2 billion. The value of NZX's equity market climbed 13 percent to $106.6 billion in November from the year earlier month, or 44.3 percent of gross domestic product. The number of listed equity securities slipped 1.2 percent to 171.

The NZX debt market was bolstered in November after the New Zealand Local Government Funding Agency listed all six existing series of its bonds on the market, representing a total principal mount of $5.56 billion.

The value of NZX's debt market rose 45 percent to $19 billion, or 7.9 percent of GDP. The number of listed debt securities increased 6.1 percent to 87. The number of debt market trades rose 20 percent to 2,982 while the value slipped 4.7 percent to $125 million.

Shares of NZX last traded at $1.01 and have declined 14 percent so far this year.

BusinessDesk.co.nz

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