NZX share trading jumps in June, debt trades fall

NZX share trading jumps in June, debt trades fall

July 5 (BusinessDesk) Share trading on NZX Ltd.’s markets jumped 78% last month while turnover of debt securities fell amid signs the domestic economy is proving more resilient in the wake of the Christchurch earthquakes.

There were 66,636 equity trades in June, valued at $2.4 billion, up 53% from the same month of 2010, according to NZX’s monthly shareholder metrics. By contrast, debt trades fell 21% to 3,530 while the value fell 24% to $102 million.

Bonds tend to find favour with investors in times of weaker economic activity, which makes their fixed payment more attractive. With the prospects of a pick-up in the economy, growth assets such as stocks tend to offer better returns.

Economic figures released in June include stronger-than-expected first-quarter retail sales and a rebound in business confidence, which was confirmed today with the Quarterly Survey of Business Opinion.

Companies raised $387 million selling equity in June, bringing the year-to-date total to $1.18 billion. There was$13 million of debt securities sold, making $461 million this year.

There are 171 equities listed on the NZX and 109 debt securities.

(BusinessDesk)

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