NZX share trading value climbs 22% in September as NZX 50 rounds out weak quarter

Monday 5th October 2015

The value of share trading on New Zealand's stock exchange climbed 23 percent in September, rounding out a quarter when the benchmark S&P/NZX 50 index posted its biggest three month decline in more than three years.

The total value of equity trading rose 22 percent to $3.4 billion last month from September 2014, while the total number of trades climbed 29 percent to 120,305, according to NZX's monthly metrics. The value was down from $6 billion traded in August, when ASX listed Origin Energy sold its controlling stake in Contact Energy, while the number of trades slipped from 141,087.

New Zealand's NZX 50 declined 3.5 percent in the three months ended Sept. 30, its biggest drop since June 2012, as falling commodity prices and fears about emerging economies sapped investors' appetite for risk-sensitive assets. Still, it outperformed most of its peers, which were hit harder by the souring sentiment, with Australia's S&P/ASX 200 Index falling 8 percent in the quarter, Wall Street's S&P 500 Index down 7.9 percent, and the Shanghai Composite Index slumping about 25 percent.

The benchmark index ended September 6.4 percent higher than a year earlier at 5,593. The market value of equity on the NZX rose 6.5 percent over the year to $96.7 billion, or 40.2 percent of gross domestic product.

Debt trading on the local stock market picked up in September, with the value traded up 48 percent to $146 million from a year earlier, on 9.9 percent more trades at 2,918. The market value of listed debt slipped 1.3 percent to $13.4 billion, or 5.6 percent of GDP.

About $891 million of new capital was raised across 17 events in September, largely in dual and second issuers, and taking the year to date total to $7.38 billion.

NZX's SuperLife unit grew funds under management 7.9 percent to $1.33 billion in September from the same month a year earlier, of which $434 million was in KiwiSaver funds. Its Smartshares exchange traded funds had $909 million under management, of which $482 million was held in SuperLife funds.

The stock market's derivatives operations increased lots traded by 203 percent to 28,542 in September from a year earlier, while open interest jumped 271 percent to 50,661. The volume of grain traded fell 13 percent to 531,250 tonnes traded.

NZX shares last traded at 98 cents, and have dropped 16 percent this year.

BusinessDesk.co.nz

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