November Volatility Boosts NZX’s Latest Volumes, Led By Cash Markets

NZX Limited has announced the release of its shareholder metrics for the month ending November 2016, having pared its recent losses en route to a fresh high. The strong performance was sparked by a global uptick in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term that helped stimulate trading across worldwide markets – this phenomenon extended towards the antipodes, with the NZX’s latest metrics highlighting this trend.

Looking closer at the latest tranche of volumes, NZX’s cash market trading revealed that in November 2016 the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term reported total trades of 148,207, representing a jump of 9.3% MoM from 135,630 trades in October 2016 – this yield was different even higher across a YoY timeframe, as the latest figures registered a growth of 16.3% YoY from November 2015.

The volumes in November were also on par MoM with other exchange and institutional venues, having benefited from the run up to and result of the US election, with the Donald Trump victory stunning markets.

However, the NZX’s average daily trades during November 2016 were reported at 6,737 trades or virtually unchanged MoM against 6,782 trades in October 2016. The NZX’s total value traded during November 2016 also surged to $3.9 billion, relative to $3.1 billion in October 2016 or 25.8% higher MoM, as well as seeing a YoY uptick of 18.9% YoY from November 2015.

Equities Jump MoM

Following last month’s downward spiral in volumes, NZX also saw back-to-back months of growth in November 2016, with equity transaction trades justifying a figure of 144,029. This also overtook October 2016’s figure of 132,513 trades, which yielded a growth of 8.7% MoM.

Compared to last year however, November 2016’s equity transactions were also 15.8% higher YoY from November 2015. Finally, equity transaction value traded at the NZX during November 2016 came in at $3.7 billion, rising by a factor of 23.3% MoM from $3.0 billion in October 2016.

The exchange also saw a growth across its index performance in November 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 13.1%, the NZX Portfolio Index 12.2%, ANZ A-Grade Bond Index 4.1% growth, and the ANZ All Swap Index of 4.3%, all ultimately finishing in positive territory YoY, though mixed in terms of MoM.

The monthly metrics can be read in full by accessing the following link.