NZX trading activity increases in October amid surge in demand for equities

Wednesday 4th November 2015

The volume and value of trading on New Zealand's stock exchange increased last month amid surging demand for equities in a low interest rate environment.

The total number of trades rose 1.7 percent to 123,378 in October from the same month a year earlier, while the value increased 49 percent to $4.3 billion, Wellington based NZX said in its monthly shareholder metrics. Daily average trades increased 6.5 percent to 5,875, while the daily average value jumped 56 percent to $207 million.

The benchmark S&P/NZX 50 Index booked its best month in October since the global financial crisis, climbing to record levels, as volatility in international markets abated, renewing the demand for returns on equities as low interest rates persist. Within the index, the month's rally was broad-based, with 45 stocks gaining, four declining and only Trade Me Group, the online auction house, unchanged.

Trading in equities continued to outstrip demand for debt securities. The number of equity trades increased 2.1 percent to 120,951 in October from the year earlier month, while the value increased 51 percent to $4.2 billion. In the debt market, the number of trades slipped 15 percent 2,427, while the value traded fell 3.6 percent to $100 million.

The value of NZX's equity market climbed 13 percent to $104.2 billion in October from the year earlier month, or 43.3 percent of gross domestic product. The number of listed equity securities slipped 0.6 percent to 171.

The value of NZX's debt market advanced 2.5 percent to $13.5 billion, or 5.6 percent of GDP. The number of listed debt securities fell 1.2 percent to 82 from the year earlier.

Shares of NZX last traded at 96 cents and have fallen 18 percent so far this year.

BusinessDesk.co.nz

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