NZX trades lifting but fewer new listings

WELLINGTON: NZX had more trades in the first half of 2018 although new listings dropped off significantly, as the company works on its fiveyear strategy to recapture enthusiasm in the market.

Total trades in the six months to June 30 jumped 77.6% to 1.6 million, while total value traded rose 3.7% to $19.6 billion, with daily average value traded up 2.4% to $165 million. The NZX50 Index was at 8943.13 as of June 30, from 7611 a year earlier.

Total equity securities fell 4.7% to 143 in the first half, with capital raised from initial public offerings and compliance listings plunging to just $20 mil lion from $480 million in the prior period. Listed debt securities rose 6.1% to 121, with new debt listings up 9% to $1.67 billion.

The stock market operator has been consulting the market on its ideas to overhaul its rules and processes in a bid to revive investor interest. NZX had already signalled plans to drop its NZ Alternative and NXT markets and has toyed with the idea of allowing easier disclosure obligations for smaller businesses. Final decisions are expected in the third quarter.

NZX’s funds services continued to gain, with its Superlife KiwiSaver funds under management up 18.6% to $784 million, while total Smartshares funds rose 34.6% to $2.5 billion. Sub scriptions for NZX’s agri data products rose 36.4% to 3632 in the first half.

NZX had nine ongoing investigations into issuers at the end of the first half, the same number as a year earlier. However, it had 16 ongoing investigations into market participants at the end of the first half, double that from 2017.

In calendar 2017, NZX’s net profit rose 61% to $14.8 million despite revenue dipping 2.9% to $75.3 million as it lacked gains from sales made in previous years.

NZX shares last traded at $1.11 and have dipped 0.9% this year. The company’s firsthalf earnings announcement is scheduled for August 15.