NZX’s Shareholder Statistics on the Decline in October on Lower Volatility

The NZX's October shareholder statistics generally painted a weaker picture last month, spurred by lower volatility.

NZX Limited has announced the release of its monthly shareholder metrics for October 2016, which were widely lower MoM, largely influenced by diminishing levels of volatility. Volumes at NZ capital markets typically correlate with heightened periods of volatility, often when broader markets undergo risk averse or risk on strategies.

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An in-depth examination of NZX’s cash market trading revealed that in October 2016 the exchange reported total trades of 135,630, representing a decline of -10.9% MoM from 152,246 trades in September 2016 – this performance was different across a YoY timeframe, after the latest figures registered a growth of 9.9% YoY from October 2015.

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The figures were generally on par MoM with other exchange and institutional venues, which have uniformly taken a slight to moderate dip MoM after being sparked by volatile trading in September. As such, the NZX’s average daily trades during October 2016 were reported at just 6,782 trades or -2.0% MoM against 6,920 trades in September 2016. The NZX’s total value traded during October 2016 also fell to $3.1 billion, relative to $3.8 billion in September 2016 or -18.4% lower MoM, as well as seeing a YoY decline of -28.4% YoY from October 2015.

Equities On the Rise

Following last month’s uptick in volumes, NZX could not see a sustained rise in October 2016, with equity transaction trades justifying a figure of 132,513. This failed to overtake September’s figure of 149,243 trades, having yielded a decline of -11.2% MoM. Compared to last year however, October 2016’s equity transactions were also 9.6% higher YoY from October 2015. Finally, equity transaction value traded at the NZX during October 2016 came in at just $3.0 billion, declining by a factor of -18.9% MoM from $3.7 billion in September 2016.

The exchange also saw an uptick across its index performance in October 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 16.3%, the NZX Portfolio Index 15.2%, ANZ A-Grade Bond Index 4.9% growth, and the ANZ All Swap Index of 5.7%, all ultimately finishing in positive territory YoY, though mixed in terms of MoM.

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

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