NZX cash trading gains for third consecutive month in October

Thursday 3rd November 2016

Cash trading on the NZX increased for a third straight month in October, as investors looked for returns in a low interest rate environment.

The volume of cash market trading rose 9.9 percent to 135,630 in October from the same month a year earlier, Wellington-based NZX said in its monthly shareholder metrics. Daily average trades increased 15 percent to 6,782, while the daily average value dropped 24 percent to $157 million.

The volume of equity transactions in October increased 9.6 percent to 132,513 and the value of those trades declined 30 percent to $3 billion. The benchmark S&P/NZX 50 Index last month fell from record highs reached in September, declining about 5.5 percent.

Meanwhile, the volume of debt transactions jumped 28 percent to 3,117 as the value traded soared 64 percent to $164 million. NZX's debt market has a renewed vigor this year as low interest rates have made bonds an attractive funding option for companies. The number of debt securities on the market jumped 23 percent to 101 compared with the year earlier, while the 298 listed securities across all asset classes was up 7.6 percent.

Shares of NZX last traded at $1.01 and have slid 3.7 percent this year.

BusinessDesk.co.nz

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