NZX trading activity continues recovery

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New Zealand equities trading volumes and values last month jumped by almost a third over December a year ago, NZX reports, with activity continuing to recover as the economy begins emerging from the worst effects of the global financial crisis.

The total number of NZX main board trades was up 2.1 per cent to 44,034 for the month, the value traded was 30.8 per cent higher than the same month a year earlier, at $2.2 billion.

This was heavily influenced by a major portfolio rebalancing during the month. Global brokers Lazard lost a mandate and dumped Telecom, Fletcher Building, SkyCity and Auckland International Airport as a result.

The improvement is coming none too soon, with full year statistics showing both total trades and the value traded on the NZX main board during 2010 both falling 7 per cent, to 492,616 and $21.6 million respectively.

Conversely, the NZDX showed a 19.8 per cent drop in December trading value, to $81 million, compared to the same month at the end of 2009.

Over the 2010 year, value traded fell by 14.2 per cent to $21.6 billion, although trading activity quickened over the 12 months, up 7.2 per cent over 2009 to $45,982.

Compared with November, the value of trading across the NZX's three trading platforms (NZX, NZDX, NZAX) rose 0.1 per cent compared to November.

It was boosted by a significant portfolio rebalancing in the month which saw $558 million traded over a two day period.

December's total trade and value figures contrast the decline for the year, with the total number of trades down 6.1 per cent to 540,268 compared to 2009, while annual values fell 7.5 per cent to $22.9 billion.

NZX attributed the decline to "the prolonged effects of the global financial crisis through the first half of 2010".

However, the exchange also cited "increasing international interest in New Zealand markets" for ongoing recovery in the number of leased data terminals, which grew 3.6 per cent to 7536 over the year.

Total capital raised in the December month was $294 million, chiefly due to Vital Healthcare Property Trust's $151 million rights issue, Windflow Technology Ltd's $2.3 million rights issue, and APN News & Media Ltd's $100 million debt issue.

Total capital raised for the year was $3.2 billion.

The main board has a market capitalisation of $55.7 billion, which represents 29.4 per cent of New Zealand's gross domestic product.

On the NZAX, trading volumes fell by 36 per cent to 119 compared to the same month last year, with values down 13.3 per cent to $940,000.

For the year, the number of trades fell 32.2 per cent to 1,670 compared to the previous 12 months, with values down 18.9 per cent to $10.7 million over the same period.

NZX shares rose 0.6 per cent to $1.60 today, and have declined 33.5 per cent in value over the last 12 months.