The NZX Reports Mixed Results in First Half of 2018

by Celeste Skinner
  • While trades were up in the first half of this year, new listings plunged significantly.
The NZX Reports Mixed Results in First Half of 2018
Finance Magnates

The New Zealand Stock Exchange (NZX) has released its first-half shareholder and quarterly Regulation metrics for 2018. Although the exchange did see more trades in the first half of this year, new listings plunged.

According to the report, total trades were up by 75.7 percent year-on-year to 1.6 million. The total value traded was NZ$20.3 billion, up 2.4 percent from the six months to June 30, 2017. Per day, the average amount of trades was 13,183 - also an increase of 75.7 percent from the same period last year. Following from this, the average daily amount traded was NZ$165 million, a jump of 2.4 percent from the first half of 2017. The NZX50 Index was at 8,943.13 by the end of the first half. This is compared to 7,611 a year earlier.

Total equity securities, on the other hand, fell by 4.7 percent to 143 in the six months to June 30, 2018. Capital raised from initial public offerings and compliance listings were also down to NZ$20 million. This is a decline of 95.9 percent year-on-year. Listed debt securities, however, was up by 6.1 percent and new debt listings also increased by 9 percent to NZ$1.67 billion.

NZX attempt to revive investor interest

The New Zealand exchange sought feedback in the first half on a targeted consultation of its secondary market. This is to promote increased Liquidity and support market transparency. The consultation is part of a wider campaign to revive investor interest. As a result, the stock exchange operator has suggested it will drop its NZ Alternative and NXT markets. It has also hinted that it may consider making it easier for small businesses to meet their disclosure obligations.

In addition, the exchange has also been slimming down its operations by selling off its non-core businesses. So far this year it has sold its rural newspaper Farmers Weekly, and on Friday, Finance Magnates reported that the exchange had sold its Australian grain data business to Rural Australia.

The New Zealand Stock Exchange (NZX) has released its first-half shareholder and quarterly Regulation metrics for 2018. Although the exchange did see more trades in the first half of this year, new listings plunged.

According to the report, total trades were up by 75.7 percent year-on-year to 1.6 million. The total value traded was NZ$20.3 billion, up 2.4 percent from the six months to June 30, 2017. Per day, the average amount of trades was 13,183 - also an increase of 75.7 percent from the same period last year. Following from this, the average daily amount traded was NZ$165 million, a jump of 2.4 percent from the first half of 2017. The NZX50 Index was at 8,943.13 by the end of the first half. This is compared to 7,611 a year earlier.

Total equity securities, on the other hand, fell by 4.7 percent to 143 in the six months to June 30, 2018. Capital raised from initial public offerings and compliance listings were also down to NZ$20 million. This is a decline of 95.9 percent year-on-year. Listed debt securities, however, was up by 6.1 percent and new debt listings also increased by 9 percent to NZ$1.67 billion.

NZX attempt to revive investor interest

The New Zealand exchange sought feedback in the first half on a targeted consultation of its secondary market. This is to promote increased Liquidity and support market transparency. The consultation is part of a wider campaign to revive investor interest. As a result, the stock exchange operator has suggested it will drop its NZ Alternative and NXT markets. It has also hinted that it may consider making it easier for small businesses to meet their disclosure obligations.

In addition, the exchange has also been slimming down its operations by selling off its non-core businesses. So far this year it has sold its rural newspaper Farmers Weekly, and on Friday, Finance Magnates reported that the exchange had sold its Australian grain data business to Rural Australia.

About the Author: Celeste Skinner
Celeste Skinner
  • 2872 Articles
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About the Author: Celeste Skinner
  • 2872 Articles
  • 25 Followers

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