NZX Sees Volumes Pullback During July as NZ Capital Markets Cool

NZX's trading and volumes slid in July, with equity trades leading a MoM decline.

NZX Limited has reported its monthly shareholder metrics for July 2016, having reported another monthly decrease in volumes relative to a strong performance in June. Moreover, the latest metrics have moved lower across a yearly timetable as well, a trend that was notably absent during H1 2016, per a company release.

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Looking into NZX’s cash market trading, July 2016 revealed total trades of 122,670, representing a fall of -25.6% MoM from 164,908 trades in June 2016 – in tandem with a MoM decline, these volumes were also -5.6% lower YoY from July 2015, as NZ capital markets have seen a general slowdown this year, with the lone exception of last month.

The figures are lower MoM due to a swell in volatility in global markets caused by the Brexit referendum, which caused a risk-averse environment for the month.

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In addition, the NZX’s average daily trades during July 2016 were reported at just 5,841 trades in July 2016 or -25.6% MoM against 7,853 trades in June 2016. The NZX’s total value traded during July 2016 also moved lower to $3.4 billion, relative to $4.3 billion in June 2016 or -20.9% lower MoM, despite seeing a YoY growth of 3.6% YoY from July 2015.

Equities Plunge

Despite running up a string of recent consecutive monthly increases in volumes in H1, NZX saw a pullback in July 2016, with equity transaction trades declining to 119,134, failing to beat June’s figure of 161,640 trades, justifying a decline of -26.3% MoM. Compared to last year however, July 2016’s equity transactions were also -6.4% lower YoY from July 2015. Finally, equity transaction value traded at the NZX during July 2016 came in at just $3.2 billion, falling by a factor of -23.8% MoM from $4.2 billion in June 2016.

The exchange did see an uptick across its index performance in July 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 24.1%, the NZX Portfolio Index 22.9%, ANZ A-Grade Bond Index 7.5% growth, and the ANZ All Swap Index of 7.8%, all ultimately finishing in positive territory YoY, surpassing the performance of last year in every instance.

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

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