NZX trading volumes rise in October, boosted by smaller value trades

The volume of trades on the New Zealand stock exchange increased in October, boosted by a rise in lower value equity transactions and more trading in the debt market.

The number of trades on the NZX rose 6.1 percent to 121,347 last month, compared to the same period a year earlier, according to the Wellington-based stock market operator's monthly metrics. Equity transactions increased 6.2 percent to 118,489, while debt transactions rose 4.3 percent to 2,858.

The value of equity transactions fell 25.2 percent to $2.8 billion, while the value of debt trading increased 26 percent to $104 million. Overall, trades worth less than $50,000 increased 6.5 percent in the month, suggesting more lower value transactions in the market bolstering activity.

The month of October was marked by global market volatility, with the CBOE Vix Index, or Wall Street's fear gauge peaking to its highest level since 2012, as investors fretted over a possible stall in global growth, escalating geo-political conflict in the Middle East and Ukraine and the spread of Ebola. New Zealand's NZX 50 Index bounced back in the latter part of the month, to end October at a record high. Today's metrics show the benchmark index is 9.7 percent higher than where it was a year earlier.

In October there was no new floats or debt issued. The stock market experienced a flurry of listings in the first eight months of the year, with nine companies floating on the main board, including Genesis Energy, the last of the government's power generator and retailers to be partially privatised. Orion Health, the medical software firm, is due to list on the bourse later this month, while media company NZME. is also aiming for a listing before the year is through.

In the month $277 million worth of capital was raised by issuers, taking the year to date value of capital raising to $1.67 billion.

Equity market capitalisation increased 7.8 percent in October compared to a year earlier, to $92.6 billion, or 40.4 percent of gross domestic product. The debt market capitalisation slipped 1.8 percent, to $13.2 billion or 5.8 percent of GDP.

Shares of NZX last traded at $1.19 and have fallen 4 percent since the start of the year. The stock is rated an average of "hold" based on the consensus of three analysts surveyed by Reuters, with a median price target of $1.29.