NZ share trading volumes lift in June but the value of trade eases

Total trades on the NZX rose 63 percent to 299,098 trades in June. Photo: Getty Images

The number of trades on the NZX continued to rise in June but the values fell as investors were jittery about the prospect of a global trade war.

Total trades on the NZX rose 63 percent to 299,098 trades in June from the same month a year earlier, the stock exchange operator's monthly shareholder metrics show. Total value traded, however, fell 9.9 percent to $3.4 billion and daily average value traded fell 5.4 percent to $168.1 million. The number of daily average trades rose 71 percent to 14,955 while the average on-market trade size fell 13 percent to $9,059.

Global markets continued to be hard hit by ongoing concerns about the potential for a trade war between the US and China. Domestically, however, the central bank held the key rate at a record low 1.75 percent and said it expected to keep the official cash rate at an expansionary level for a considerable period of time, helping continue to generate interest in the market given limited returns for debt securities and bank deposits.

Of total trading, the bulk was in equity transactions that rose 65 percent to 296,545 while the value fell 8.8 percent to $3.2 billion. Debt trading fell 28 percent to 2,553 and the total value traded fell 33 percent to $120 million.

The S&P/NZX 50 Index ended June at 8,943, up 18 percent on the year while the market capitalisation of NZX's equities rose 10 percent to $133 billion, or 46 percent of gross domestic product. The debt market's value fell 1.9 percent to $26.9 billion or 9.4 percent of GDP.

The number of listed securities fell 1 percent on the year in June to 30, with stocks on the main board down 5.5 percent to 120, NZAX listings down 5.9 percent to 16, NXT issuers unchanged at four and NZDX issuers up 12 percent to 48.

Some $192 million of secondary capital was raised in June across 15 events.

In derivatives trading there was a 10 percent lift in futures lots to 26,417 and a 30percent rise in options to 7,332. Open interest lifted 27 percent to 60,797.

NZX's funds management division continued to expand, with total SuperLife funds under management up 16 percent to $2.1 billion and total Smartshares funds up 35 percent to $42.5 billion. Funds under administration in NZX's wealth technology shrank 7.9 percent to $1.13 billion.

New Zealand agri data subscriptions rose 36 percent to 3,632 while Australian data products increased 1 percent to 1,497. Paid ad page equivalents at the Farmers Weekly publication, which NZX has sold, fell 12 percent to 107, while year-to-date ad page fell 5.1 percent to 618.

NZX shares were unchanged at $1.13, and increased 0.9 percent so far this year.