Cash trading through NZX slows

The Synlait factory in Canterbury. The company is set to list this month.

The value of cash market trading on the NZX slowed last month, from a near-doubling in May on the coattails of the Mighty River Power listing, though was still up from June last year.

Total value traded climbed 20 per cent to $2.7 billion in June from the same month a in 2012 at an average daily value of $141 million, according to NZX's monthly shareholder metrics. That was off the $5 billion value traded in May at a daily average of $218 million. Total trades climbed 21 per cent to 81,807, for a daily average of 4832.

Share trading continued to drive the local market, with equity transactions up 23 per cent to 89,693, for a 21 per cent gain in value to $2.6 billion, while the debt market kept tapering off with a 22 per cent fall in trades to 2,638 and a similar decline in value to $75 million.

In the year to date, trades have climbed 18 per cent to 528,576 from the same period in 2012, with a 56 gain in value traded to $20.8 billion.

The stock market has attracted renewed interest with the government's partial privatisation programme kicking off with MRP in May, and Meridian Energy slated for a listing later this year. MRP attracted a total of 113,857 individual New Zealand investors in the public sale at $2.50 a share, but has since come off the boil, closing at $2.25 yesterday.

Spy software maker Wynyard Group and dairy company Synlait Milk are set to join the NZX this month in initial public offerings looking to raise about $185 million.
Some $305 million of new capital was raised in June in 32 events, of which $236 million was in primary equity, $1 million from dual and secondary equity and $68 million in new debt.

Healthcare and pet care products maker Ebos Group raised $90 million in a private placement as part of a $1.1 billion acquisition, and will raise a further $149 million this month when its rights issue settles.

Companies have raised $885 million of new capital in the year to date, of which $642 million was primary equity, $150 million in secondary and dual equity and $93 million in debt. Some $3.8 billion of new capital has been listed on the exchange.

NZX's equity market capitalization was $72.9 billion, or 34.4 per cent of gross domestic product, as at June 30, 28 per cent higher than a year earlier. Debt market capitalisation was $13.8 billion, or 6.5 per cent of GDP, down 11 per cent from June 2012.
Shares in NZX were unchanged, closing at $1.32 yesterday, and have gained 9.1 per cent this year.