NZX’s Shareholder Metrics Hold Tight Consolidation in September

The NZX's metrics were unable to notch any sizable gains in September, with its cash markets stagnating MoM.

NZX Limited has announced the release of its monthly shareholder metrics for September 2016, which was marginally higher, even during a time when global markets were ripe with higher levels of volatility. NZ capital markets typically register strong volumes during periods of volatility, often when broader markets executive risk averse or risk on strategies.

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A closer examination ofNZX’s cash market trading revealed that in September 2016 the exchange reported total trades of 152,246, representing a growth of less than 1.0% MoM from 151,034 trades in August 2016 – the needle moved slightly more over a YoY timeframe, after the latest figures climbed 14.3% YoY from September 2015, despite NZ capital markets undergoing a somewhat mixed performance throughout H2 2016.

The figures are once again a departure from the norms MoM from other exchange and institutional venues, which have uniformly risen strongly, after being sparked by volatile trading in September. The latest consolidation of figures however does suggest that NZ capital markets trading was already benefiting from such forces as early as last month, which usually moves in wider ranges than other exchanges worldwide.

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In addition, the NZX’s average daily trades during September 2016 were reported at 6,920 trades or 5.4% MoM against just 6,567 trades in August 2016. The NZX’s total value traded during September 2016 also fell to $3.8 billion, relative to $4.0 billion in August 2016 or -5.0% lower MoM, despite seeing a YoY ascension of 8.0% YoY from September 2015.

Equities On the Rise 

Following last month’s uptick in volumes, NZX saw a continued rise in September 2016, albeit by a more muted margin, with equity transaction trades justifying a figure of 149,243. This overtook August’s figure of 147,597 trades, having yielded a growth of 1.1% MoM. Compared to last year however, September 2016’s equity transactions were also 14.5% higher YoY from September 2015. Finally, equity transaction value traded at the NZX during September 2016 came in at just $3.7 billion, declining by a factor of -5.1% MoM from $3.9 billion in August 2016.

The exchange also saw an uptick across its index performance in September 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 31.6%, the NZX Portfolio Index 29.8%, ANZ A-Grade Bond Index 5.8% growth, and the ANZ All Swap Index of 7.0%, all ultimately finishing in positive territory YoY, though mixed in terms of August 2016.

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

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