NZX’s August Metrics Rebound Higher Despite Low Volatility

NZX Limited has reported its monthly shareholder metrics for August 2016, having seen a monthly rebound in key volumes segments after what had been a lackluster July. Beyond a MoM basis, the latest metrics have also been a mixed bag across a yearly timetable as well, per a company release.

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Delving into NZX’s cash market trading, August 2016 revealed total trades of 151,034, representing a growth of 23.1% MoM from 122,670 trades in July 2016 – in tandem with a MoM ascension, these volumes were also 5.3% higher YoY from August 2015, as NZ capital markets have seen a checkered performance throughout H2 2016.

The figures are somewhat surprising MoM given a comparison to other institutional venues, which have almost uniformly declined due to low 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. The spike in volatility 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 fallout ultimately fizzled out in August, leaving volumes on the back foot heading into the fall.

In addition, the NZX’s average daily trades during August 2016 were reported at just 6,567 trades in August 2016 or 12.4% MoM against 5,841 trades in July 2016. The NZX’s total value traded during August 2016 also moved higher to $4.0 billion, relative to $3.4 billion in July 2016 or 17.6% lower MoM, despite seeing a YoY decline of -33.1% YoY from August 2015.

Equities On the Rise

Following last month’s waning of volumes, NZX saw a sharp rebound in August 2016, with equity transaction trades advancing to 147,597, besting July’s figure of 119,134 trades, which justified a climb of 23.9% MoM. Compared to last year however, August 2016’s equity transactions were also 4.6% higher YoY from August 2015. Finally, equity transaction value traded at the NZX during August 2016 came in at just $3.9 billion, rising by a factor of 21.9% MoM from $3.2 billion in July 2016.

The exchange also saw an uptick across its index performance in August 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 30.8%, the NZX Portfolio Index 30.2%, ANZ A-Grade Bond Index 5.9% growth, and the ANZ All Swap Index of 7.6%, 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.