Some liquidity coming back into the market: NZX

Tuesday 1st June 2010

The total value of securities traded on NZX platforms rose 23% in May from April to $2.2 billion, due mainly to a lift in Main Board trading value, according to the bourse’s operational report.

There were 13 trading days during May where the daily average value traded exceeded $100 million, compared to only four such days in April.

NZX suggests this indicates an improvement in liquidity, with average daily trades numbering 2,451 being a 9% increase from the previous month.

However, compared to May last year, average daily trades have fallen by 10%, with total trades in the same comparative month also down 10% to 51,464.

The number of real time data terminals increased for a third month in a row to 7,301 from the February low of 7,149 terminals, as end users of market data, such as global investment banks, continue to add staff to their trading desks NZX said.

During May, $487 million of new capital was raised on NZX, $300 million of which was new debt, led by Kiwi Capital and Sky City bonds. Among the new equity raising deals were Ecoya’s $10 million entry listing and about $40 million of new capital input for Pike River Coal.

The stock exchange’s total market capitalisation has lifted 7% compared to a year before, and now stands at $51.23 billion.

Electricity prices on the NZX’s energy markets index fell steadily during May largely due to high hydro storage levels in the South Island, falling oil prices and no major generator outages.

The total national hydro storage level is 84% of maximum. Trading on Energy Hedge in April was down 44% in number and 32% in value terms from March.

The NZAX, the alternative, small cap market, saw trades fall 36% from May last year to total 151. The value of those trades at $0.86 million is a 46% drop from May 2009.

Businesswire.co.nz

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