NZX Sees Volumes Pullback During July as NZ Capital Markets Cool

NZX Limited has reported its monthly shareholder metrics for July 2016, having reported another monthly decrease in volumes relative to a strong performance in June. Moreover, the latest metrics have moved lower across a yearly timetable as well, a trend that was notably absent during H1 2016, per a company release.

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Looking into NZX’s cash market trading, July 2016 revealed total trades of 122,670, representing a fall of -25.6% MoM from 164,908 trades in June 2016 – in tandem with a MoM decline, these volumes were also -5.6% lower YoY from July 2015, as NZ capital markets have seen a general slowdown this year, with the lone exception of last month.

The figures are lower MoM due to a swell in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in global markets caused by the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term referendum, which caused a risk-averse environment for the month.

In addition, the NZX’s average daily trades during July 2016 were reported at just 5,841 trades in July 2016 or -25.6% MoM against 7,853 trades in June 2016. The NZX’s total value traded during July 2016 also moved lower to $3.4 billion, relative to $4.3 billion in June 2016 or -20.9% lower MoM, despite seeing a YoY growth of 3.6% YoY from July 2015.

Equities Plunge

Despite running up a string of recent consecutive monthly increases in volumes in H1, NZX saw a pullback in July 2016, with equity transaction trades declining to 119,134, failing to beat June’s figure of 161,640 trades, justifying a decline of -26.3% MoM. Compared to last year however, July 2016’s equity transactions were also -6.4% lower YoY from July 2015. Finally, equity transaction value traded at the NZX during July 2016 came in at just $3.2 billion, falling by a factor of -23.8% MoM from $4.2 billion in June 2016.

The exchange did see an uptick across its index performance in July 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 24.1%, the NZX Portfolio Index 22.9%, ANZ A-Grade Bond Index 7.5% growth, and the ANZ All Swap Index of 7.8%, all ultimately finishing in positive territory YoY, surpassing the performance of last year in every instance.

The monthly metrics can be read in full by accessing the following link.