NZX’s Capital Markets Cool Off in April as Volumes Retreat

Despite marking 2016 highs in the previous months, April constituted a sizable pullback in volumes at NZX.

NZX Limited has reported its monthly shareholder metrics for April 2016, having seen a decrease in volumes MoM from March. Despite the pullback and mixed figures however, every month in 2016 has continued to see a large degree of strength and improvement over its 2015 equivalent, according to an NZX statement.

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Delving into NZX’s cash market trading, April 2016 revealed total trades of 142,769, representing a fall of -14.5% MoM from 167,070 trades in March 2016 – however, these volumes were also 46.6% higher YoY from April 2015, as NZ capital engaged in much higher trading this year relative to last. The latest figures also snap a multi-month ascension in trading volumes.

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Moreover, the NZX’s average daily trades during April 2016 were reported at just 7,138 trades against 7,953 in March 2016 or -10.2% MoM. The NZX’s total value traded during April 2016 also withered to $4.1 billion, relative to $4.4 billion in March 2015 or -6.8% lower MoM, though 55.1% higher YoY from April 2015.

Equities Halt Monthly Advance

Despite running up a string of consecutive monthly increases in volumes, NZX saw a pullback in April 2016, with total trades declining to 139,551, failing to beat March’s figure of 163,341 trades, en route to a loss of -14.5% MoM. Compared to last year however, April’s volumes were 46.9% higher YoY from April 2015. Finally, equity transaction value traded at the NZX during April 2016 came in at just $3.9 billion, rescinding by a factor of -9.3% MoM from $4.3 billion in March 2016.

The exchange’s lone ray of optimism was garnered from its latest shareholder metrics across its indices performance in April 2016. During the month, the NZX 50 Index (17.8% growth YoY), the NZX Portfolio Index (17.6% growth), ANZ A-Grade Bond Index (6.5% growth), and the ANZ All Swap Index (7.9% growth) all finished 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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