NZX trading growth accelerates in October

Monday 5th November 2012

Growth in the value of trading on the NZX accelerated last month as the benchmark NZX 50 Index reached near five-year highs.

The total value traded on the NZX rose 26 percent to $2.5 billion in October from the same month a year earlier, with a 26 percent rally in the value of equity transactions and a 12 percent gain in debt security trading, according the NZX's monthly shareholder metrics report. Total value traded fell 0.9 percent to $23.6 million in the year-to-date, slowing from the 3.3 percent pace of decline in September.

The number of equity transactions climbed by a third to 73,679 in October from a year earlier, while debt trades fell 2.8 percent to 2,918.

The stock exchange's equity market capitalisation rose 16 percent to $65.6 billion, or 32 percent of gross domestic product, while the debt market cap shrank 2.9 percent to $15 billion.

The metrics come in a month where New Zealand's benchmark index closed above 4,000 for the first time since December 2007. The NZX 50 Index fell 0.5 percent, to 3914.07 at the close of trading on Friday.

The total number of equity securities was unchanged at 168 in October, in what's been a light year for new offers with the government's partial listings of state-owned power companies looming high on investors' minds. Boutique beer brewer Moa Group will float on the stock exchange this month.

The number of debt securities fell 8.3 percent to 99, while other securities dropped 36 percent to seven.

Issuers raised $249 million across 29 offers in October, taking capital raising to $2.64 billion in 223 events in the year-to-date.

BusinessDesk.co.nz

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