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NZX trading activity increases in June, as value of trade falls

Thursday 6th July 2017

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NZX trading activity increased in June, while the value of trade shrank, suggesting more activity by smaller investors.

The volume of cash trades on the NZX rose 11 percent to 183,360 in June from the same month a year earlier, while the total value traded dropped 14 percent to $3.7 billion, Wellington-based NZX said in its monthly shareholder metrics. The number of trades worth less than $50,000 increased 14 percent to 174,379, accounting for 95 percent of the total volume.

No new capital was raised through IPOs or compliance listings in the month, while $770 million was raised in new debt listings. A total of $1.39 billion was raised by existing issuers across 20 events in June, including $1.21 billion of equity and $185 million of debt.

NZX said last week that if the current relatively subdued capital raising and securities trading conditions persist, it expects profit to be in the middle of its forecast for 2017 annual earnings before interest, tax, depreciation and amortisation of between $27 million and $30 million, but if conditions improve it would deliver a result at the upper end.

The company is planning to carry out an extensive review of its business, which it says will help determine its future shape and influence the strategies it will adopt in growing the business and New Zealand’s capital markets for the long-term. The results of that review are due in November.

NZX flagged that it may simplify its structure to combine the main NZSX board, the NZAX alternative market which is being phased out, and its replacement market for small caps, NXT.

The benchmark S&P/NZX 50 Index was 10 percent higher in June compared with its level a year earlier, closing the month at 7,611.

NZX shares last traded at $1.12, having increased 19 percent over the past year.


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