NZX monthly trading growth slows in September after August spike

Wednesday 5th October 2011

The volume of trading on NZX’s exchange slowed last month after spiking in August when global market volatility surged following Standard & Poor’s downgrade of the U.S, credit rating. Volumes were still up on September 2010.

The total number of trades rose 23% to 60,809 in September from the same month a year earlier, and was down from 85,992 in August, the bourse operator said in a statement. The total value traded was $2.2 billion, up 3.9% from September 2010. The average number of trades rose by 23% to 2,764, or $109 million per day.

Equity transactions climbed 26% to 57,078 from a year ago, for a total value of $2.1 billion. Debt transactions fell 7.2% to 3,731, for a total value of $99 million.

The benchmark NZX 50 Index rose 0.8% in September after clawing back losses in August when equity markets tumbled on the back of the U.S. downgrade. The index rose 0.1% to 3320.39 yesterday, and is up just 0.2% this year.

NZX’s total equity market capitalisation, which includes the NZX’s small-cap NZAX market, was up 4.9% at $5.8 billion in September from 2010, with debt down 0.2% at $15.5 billion.

The market raised $189 million of new equity in September, taking the year-to-date total to $1.46 billion, and raised $15 million of debt, for a year-to-date total of $766 million.

The number of listed securities fell 3.4% to 169 in September from 2010, while listed debt securities dropped 6.1% to 108 from a year earlier.

That comes as the stock exchange prepares for some new listings, with eco-light bulb maker Energy Mad trying to raise as much as $10 million in an initial public offering, and retirement village operator Summerset seeking up to $136 million in a partial float. Rival retirement village operator Vision Senior Living is rumoured to come to market this year, and Fairfax Media Group will sell a partial stake in online auction site Trade Me before the year is out.

Shares in NZX were unchanged at $2.37 in trading yesterday, and have climbed 55% this year.

(BusinessDesk)

BusinessDesk.co.nz

Comments from our readers

No comments yet