NZX trading activity increases in July

WELLINGTON: NZX trading activity was busier in July from a year earlier, although with smaller values changing hands, and the stock market operator touts more than half its transactions took place onmarket.

Total trades jumped 70% to 258,063 in July, with average daily trades at 11,730, NZX’s monthly metrics show. Still, the increased volumes did not translate to a higher value of trading. The total value traded was down 24% to $2.62 billion, or a daily average of $119 million.

The stock market operator has been seeking to encourage more activity on its bourse to stoke greater liquidity and yesterday said 52.6% of the value of trading was onmarket, compared to 33.4% a year earlier. In the year to date, the volume of trading has climbed 75% to 1.88 million transactions, while the value of trading dipped 1.6% to $22.94 billion.

The S&P/NZX 50 index hit a record high in July, closing above 9000 for the first time. Investors’ appetite for riskier assets waxed and waned as trade tension between the United States and China increased.

The benchmark index rose 16% in July from a year earlier, ending the month at 8922. Since then it has tapered off and the NZX 50 closed yesterday at 8903.13, up 0.44%.

Equity trading continued to dominate transactions in July. The volume rose 72% to 254,936, while the value traded dropped 25% to $2.47 billion. About 50.3% of the value of equity transactions took place onmarket. The number of debt transactions dropped 11% to 3,127 in July from a year earlier, while the value traded fell 5.2% to $153 million. Some 90.6% of the value of debt transactions took place on market.

NZX still struggled to attract new participants to the bourse in July. There were no initial public offerings or compliance equity listings, and $240 million of new debt was listed.

That may be about to change. Australia & New Zealand Banking Group is considering an IPO for its UDC Finance division and The Australian newspaper yesterday reported Straker Translations may seek a duallisting on the ASX and NZX.

Firms already listed continued to raise funds in secondary capital raisings and $35 million of new debt and equity was raised in the month, across 111 events. That takes the yeartodate tally to $3.1 billion across 767 events.

— BusinessDesk