NZX onshare trading rises in September

ONMARKET share trading rose in September, a month before local market operator NZX imposes a new pricing structure aimed at encouraging more activity.

Some 54.2% of the value of all cash trades went through the official market in September, up from 53.1% in August and 37.2% a year earlier. That improvement was mostly through equity trading, with 53% onmarket compared to 51.3% in August, while 87.9% of the value of debt market transactions were onmarket, compared to 93% in August.

The number of trades climbed 47% to 279,746 in September from a year earlier, although the value traded shrank 7.7% to $3.54 billion. Share trading continued to dominate activity, with a 48% increase in equity transactions to 277,252 for a 5.8% decline in value to $3.42 billion. Debt trading dropped 21% to 2494 with the value traded down 41% to $123 million.

NZX has been seeking to encourage greater liquidity in the country’s licensed stock market, improving price transparency and making the broader capital markets more attractive. That has included plans to consolidate the three equity boards, introduce new listing rules and change its fee structure.

The strategy has not won over everyone. NZX shareholder Elevation Capital on Tuesday launched a campaign urging for change at the stock market operator, such as spinning out its funds management unit, shrinking its executive team and board, and introducing measures to gauge success. — BusinessDesk