NZX trading activity lifts in August, bolstered by small trades

Tuesday 5th September 2017

NZX trading activity rose in August, once again lifted by a strong rise in activity by smaller investors.

The volume of cash trades on the NZX rose 19 percent to 179,530 versus the same month a year earlier while the total value traded rose 3 percent to $4.2 billion, Wellington-based NZX said in its monthly shareholder metrics. The number of trades worth less than $50,000 increased 21 percent to 170,046, accounting for 95 percent of the total volume. The daily average traded was $181 million.

No new capital was raised through IPOs or compliance listings or new debt listings in the month.

A total of $243 million was raised by existing issuers across 19 events in August, including $83 million of equity from primary issuers, $39 million from dual and secondary issuers and $121 in debt.

The benchmark S&P/NZX 50 Index was 5.6 percent higher in August on the year, closing at 7,817.

Earlier this month, the market operator said it more than doubled first-half profit though revenue dipped slightly, with operating expenses falling after it streamlined operations as it seeks to focus its business. Net profit rose to $7.95 million in the six months ended June 30 from $3.58 million a year earlier, the market operator said in a statement.

It is currently reviewing its business and the results are due in November, with NZX currently mulling class waivers for stocks listed on its NZAX and NXT small-cap markets as part of a likely consolidation into the main board.

NZX shares last traded at $1.15, and have gained 18 percent over the past 12 months.

(BusinessDesk)

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