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NZ share trading activity rises in May

NZ Newswire logoNZ Newswire 5/06/2017 Paul McBeth

Activity on New Zealand's stock exchange increased while the value of trading shrank in May, a month that delivered the first initial public offering of the year on the NZX.

The volume of cash trades on the NZX rose 13 per cent to 196,467 in May from the same month a year earlier, while the average daily trades were up 8.4 per cent to 8542, NZX shareholder metrics show. The bulk of those were for trades worth less than $50,000, which typically captures transactions by retail investors, which was up 16 per cent to 187,525.

Still, the value traded dropped 15 per cent to $3.7 billion from May 2016 and the daily average value shrank 18 per cent to $161 million, and activity was down on both measures in the year-to-date, with the number of trades slipped 2.5 per cent to 739,718 in the five months through May for a 12 per cent drop in value traded to $16.1b.

The metrics cover the first IPO of the year with aged care provider Oceania Healthcare joining the bourse. Some $480m of equity has been listed through an IPO or compliance listing, whereas $770m of debt has been listed in the year so far.

Some $209m of new capital was raised across 10 events in May, taking the total for the year to $933m from 57 events. About $50m of new equity was raised in May compared to $159m of debt, with new bond issues still a favourite source of funding for companies due to the benign interest rate environment.

The benchmark S&P/NZX 50 index rose 5.4 per cent in May, ending the month at 7419.9.

NZX shares last traded at $1.09, having increased 3.9 per cent so far this year.

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