Share trading up in May

WELLINGTON: Activity on New Zealand’s stock exchange increased while the value of trading shrank in May, a month that delivered the first initial public offering of the year on the NZX.

The volume of cash trades on the NZX rose 13% to 196,467 in May from the same month a year earlier, while the average daily trades were up 8.4% to 8542, NZX shareholder metrics show. The bulk of those were for trades worth less than $50,000, which typically captures transactions by retail investors, which was up 16% to 187,525.

Still, the value traded dropped 15% to $3.7 billion from May 2016 and the daily average value shrank 18% to $161 million, and activity was down on both measures in the yeartodate. The number of trades slipped 2.5% to 739,718 in the five months through May for a 12% drop in value traded to $16.1 billion.

The metrics cover the first IPO of the year, with agedcare provider Oceania Healthcare joining the bourse. Some $480 million of equity has been listed through an IPO or compliance listing, whereas $770 million of debt has been listed in the year so far.

Some $209 million of new capital was raised across 10 events in May, taking the total for the year to $933 million from 57 events. About $50 million of new equity was raised in May compared with $159 million of debt.

New bond issues are still a favourite source of funding for companies due to the benign interest rate environment.

The benchmark S&P/NZX 50 index rose 5.4% in May, ending the month at 7419.9.

NZX shares last traded at $1.09, having increased 3.9% so far this year. — BusinessDesk