NZX’s Monthly Trading Statistics Drop in January, Led by Equities

NZX Limited has reported the release of its shareholder metrics for the month ending January 2017, which saw its business segments and volumes fall across the board in a risk averse environment.

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In terms of NZX’s latest volumes across cash market trading in January 2017, 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 reported total trades of 110,935, representing a fall of -8.8 percent month-over-month from 121,605 trades in December 2016. This performance was similar when measured against its 2016 counterpart, rescinding by a margin of -12.0 percent year-over-year.

The latest volumes come amidst an uptick 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 across worldwide markets, stimulated in part by Donald Trump's administration. However, this has also created a risk-off environment, which has typically coincided with lower levels of trading activity on the NZX.

NZX’s average daily trades during January 2016 were reported at 5,547 trades, down by a factor of -8.8 percent month-over-month from 6,080 trades in December 2016. This decline was exacerbated year-over-year, falling -16.4 percent from January 2016.

The NZX’s total value traded during January 2017 also dwindled to $2.2 billion, relative to $3.0 billion in December 2016 or -26.7 percent month-over-month, as well as seeing a year-over-year uptick of 2.3 percent from January 2016.

Equities Decline MoM

Looking at the equities space, NZX also reported a consecutive monthly decline in this asset, which extended into January 2017. Equity transaction trades came in at just 108,668, down -8.0 percent month-over-month from 118,059 trades in December 2016.

January 2017’s equity transactions were also down -12.3 percent year-over-year from January 2016. Finally, equity transaction value traded at the NZX during January 2017 came in at $2.1 billion, retreating by a margin of -25.0 percent month-over-month from January 2016.

The exchange also saw growth across its index performance in November 2016 – during the month, the NZX 50 Index saw a respective YTD growth of 14.3 percent, the NZX Portfolio Index 13.0 percent, ANZ A-Grade Bond Index 3.2 percent growth, and the ANZ All Swap Index of 2.4 percent.

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