Investor confidence growing as NZX trades up 12pc

Investors appear to be regaining some confidence with trading numbers up on the New Zealand stock exchange, although values remain down on a year ago.

NZX today said average daily trade numbers in May were 12 per cent higher than a year earlier at 2719, the highest since last October.

It was the first time average daily trades had exceeded the previous year's total since October, NZX said.

The $105 million average daily value traded was the highest since last September, although still 16 per cent lower than May 2008.

While the number of total trades last month was also up, lifting 7 per cent from a year earlier to 57,108, the total value traded remained well down on a year ago, 20 per cent lower at $2.2 billion.

"Across the board, this is the best month's performance we've seen since the current economic cycle began," NZX head of trading and liquidity Fiona Mackenzie said.

Negative numbers on data terminals largely reflected the figure from one data vendor, whose subscription renewal period turned over during the month.

"The end user firms who have cut data terminals are looking to make cost savings wherever possible, and we would expect the same end user firms re-signing in upcoming months as markets improve," she said.

NZX figures showed the number of real time data terminals down 25 per cent from a year earlier at 8176, and down 18 per cent so far this year.

During May $208.8m of new equity was raised, taking the total for the year-to-date to $1.35 billion. New debt raised in May came to $545.4m, lifting the total so far this year to $2.6b.

- NZPA