NZX’s August Metrics Rebound Higher Despite Low Volatility

Cash markets and equities trading volumes rose steadily in August, paring last month's lackluster performance.

NZX Limited has reported its monthly shareholder metrics for August 2016, having seen a monthly rebound in key volumes segments after what had been a lackluster July. Beyond a MoM basis, the latest metrics have also been a mixed bag across a yearly timetable as well, per a company release.

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Delving into NZX’s cash market trading, August 2016 revealed total trades of 151,034, representing a growth of 23.1% MoM from 122,670 trades in July 2016 – in tandem with a MoM ascension, these volumes were also 5.3% higher YoY from August 2015, as NZ capital markets have seen a checkered performance throughout H2 2016.

The figures are somewhat surprising MoM given a comparison to other institutional venues, which have almost uniformly declined due to low volatility. The spike in volatility caused by the Brexit referendum fallout ultimately fizzled out in August, leaving volumes on the back foot heading into the fall.

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In addition, the NZX’s average daily trades during August 2016 were reported at just 6,567 trades in August 2016 or 12.4% MoM against 5,841 trades in July 2016. The NZX’s total value traded during August 2016 also moved higher to $4.0 billion, relative to $3.4 billion in July 2016 or 17.6% lower MoM, despite seeing a YoY decline of -33.1% YoY from August 2015.

Equities On the Rise

Following last month’s waning of volumes, NZX saw a sharp rebound in August 2016, with equity transaction trades advancing to 147,597, besting July’s figure of 119,134 trades, which justified a climb of 23.9% MoM. Compared to last year however, August 2016’s equity transactions were also 4.6% higher YoY from August 2015. Finally, equity transaction value traded at the NZX during August 2016 came in at just $3.9 billion, rising by a factor of 21.9% MoM from $3.2 billion in July 2016.

The exchange also saw an uptick across its index performance in August 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 30.8%, the NZX Portfolio Index 30.2%, ANZ A-Grade Bond Index 5.9% growth, and the ANZ All Swap Index of 7.6%, 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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