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NZX dips after result

By Duncan Bridgeman

Friday 1st August 2003

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Shares in newly listed Stock Exchange operator New Zealand Exchange (NZX) slipped yesterday following the company's first interim result.

The company posted a net profit of $584,000 for the six months to June 30 on revenue of $5.44 million but there were no direct comparisons available.

NZX shares had fallen 5c to $4.85 at press time yesterday, nullifying their 4c gain on Wednesday.

The company last year posted a loss of $155,000 for the six months to December 31 but did not provide any earnings forecasts for its initial public offering and rights issue.

NZX's main revenue sources come from listed companies, broker fees and data vending. Three new equity listings from Promina Group, Global Equity and RMG helped lift revenue in this category by 20.3% to $1.89 million.

However trading revenue declined 5.1% to $1.36 million while revenue from market data fell 9.3% compared with the six months to December 31.

The results coincided with a briefing in Auckland this week on the upcoming launch of the New Zealand Alternative Market (NZAX).

The company is hoping to attract more listings on this market as a prelude to them moving on to the main bourse. It is aiming to have the first 15 companies lined up for a November 15 start.

Chief executive Mark Weldon said the NZAX offered cheaper access to capital by not requiring prospectus forecasts and only needing a single document. Fees consisted of a minimum entry of $7500 and annual costs of $5000 for companies up to $15 million market capitalisation.

Annual fees for companies over $15 million would be priced as per the NZSX market.

Mr Weldon said the NZAX was designed to sit halfway between the main board and the outgoing New Capital Market and unlisted market.

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