NZX’s January Trading Volumes Cannot Shake Out of Tight Consolidation

The NZX Limited has announced the release of its shareholder metrics for the month ending January 2016, with several components of its business taking a step back for the month. The latest tranche of data also points to a healthy YoY growth when measured against 2015, despite the recent bout of market weakness, according to an NZX statement.

Avid industry news reader? Take the Finance Magnates quiz

In terms of the NZX’s cash market trading, January 2016 saw total trades at 126,098, which marks a slight decline of -1.4% MoM from 127,920 trades in December 2015 – this figure also relates to a sizable jump of 45.1% YoY from January 2015. The latest cash market trading figures represents the third straight month of being locked in a tight consolidation, refusing to waiver much as volumes have largely stagnated.

One area where this was not the case was across the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term’s average daily trades, which managed to secure a rise to 6,637 trades in January 2016, vs. just 6,091 in December 2015 or 8.9% MoM. Conversely, this uptrend was convoluted given that the total value traded at the NZX during January 2016 came in at only $2.2 billion, well off its December 2015 figure of $3.3 billion or -33.3% MoM, underlying the recent declines across it capital markets.

Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term Take a Breather in January

Equity transactions on the NZX, while a point of emphasis for its recent capitalization, did incur a decline to 123,926 in January 2016, down less than -1.0% MoM from 125,032 trades in December 2015, though up by 45.0% YoY from January 2015. Furthermore, the equity transaction value traded at the NZX during January 2016 registered just $2.1 billion, crashing -34.3% MoM from $3.2 billion in December 2015.

One positive that can be extracted from the financial metrics was the NZX’s indices performance in January 2016, especially in regard to the 2015 equivalent. During January 2016, the NZX 50 Index (7.4% growth YoY), the NZX Portfolio Index (8.0% growth), ANZ A-Grade Bond Index (5.6% growth), and the ANZ All Swap Index (5.8% growth) all finished in positive territory.

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

Last month, the NZX released its full year 2015 operating metrics, which underscored a gain across its capital markets and trading volumes during the fiscal year. Reading between the lines however, the exchange had what could be termed as a lackluster year across its IPO and listings market, though its new debt issues were up by 374.3% YoY from 2014.