NZX’s January Trading Volumes Cannot Shake Out of Tight Consolidation

The NZX has gone through three straight months of stagnated trading volumes, despite suffering deep losses in capitalization and trading

The NZX Limited has announced the release of its shareholder metrics for the month ending January 2016, with several components of its business taking a step back for the month. The latest tranche of data also points to a healthy YoY growth when measured against 2015, despite the recent bout of market weakness, according to an NZX statement.

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In terms of the NZX’s cash market trading, January 2016 saw total trades at 126,098, which marks a slight decline of -1.4% MoM from 127,920 trades in December 2015 – this figure also relates to a sizable jump of 45.1% YoY from January 2015. The latest cash market trading figures represents the third straight month of being locked in a tight consolidation, refusing to waiver much as volumes have largely stagnated.

One area where this was not the case was across the exchange’s average daily trades, which managed to secure a rise to 6,637 trades in January 2016, vs. just 6,091 in December 2015 or 8.9% MoM. Conversely, this uptrend was convoluted given that the total value traded at the NZX during January 2016 came in at only $2.2 billion, well off its December 2015 figure of $3.3 billion or -33.3% MoM, underlying the recent declines across it capital markets.

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Equities Take a Breather in January

Equity transactions on the NZX, while a point of emphasis for its recent capitalization, did incur a decline to 123,926 in January 2016, down less than -1.0% MoM from 125,032 trades in December 2015, though up by 45.0% YoY from January 2015. Furthermore, the equity transaction value traded at the NZX during January 2016 registered just $2.1 billion, crashing -34.3% MoM from $3.2 billion in December 2015.

One positive that can be extracted from the financial metrics was the NZX’s indices performance in January 2016, especially in regard to the 2015 equivalent. During January 2016, the NZX 50 Index (7.4% growth YoY), the NZX Portfolio Index (8.0% growth), ANZ A-Grade Bond Index (5.6% growth), and the ANZ All Swap Index (5.8% growth) all finished in positive territory.

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

Last month, the NZX released its full year 2015 operating metrics, which underscored a gain across its capital markets and trading volumes during the fiscal year. Reading between the lines however, the exchange had what could be termed as a lackluster year across its IPO and listings market, though its new debt issues were up by 374.3% YoY from 2014.

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