Bull run for NZX in January
The NZX benefited from a global equity market bull run in January, with trading activity up by almost a third as investors continued to chase yields.
According to the firm's monthly metrics, a total of 69,281 securities were traded in January, up 32.8 per cent compared to the same period 12 months ago. That was equivalent to $2.3 billion in trade, up 65.7 per cent on last year.
Equities accounted for the bulk of activity, with the number of sharemarket trades increasing 35 per cent to 67,289 in the month. NZX also provides trading in bonds and funds.
The boost in January activity, which is normally a more subdued month as market participants trickle back from their annual holidays, comes as global investor continued to pile into stocks amid a low interest rate environment.
Over January, the Standard & Poor's 500 Index rose 2.9 per cent to close the month at 1498.11, and New Zealand's NZX 50 Index gained 4.2 per cent to finish 4252.64 - a multi-year high.
The NZX debt market saw trading activity fall 13.9 per cent compared to January last year, but the value of the trades rose 15.1 per cent to $65 million.
A total of $114m in capital was raised in January, all from the equity market.
The equity market capitalisation stood at $69.1b at as the end of January, up by a 33.2 per cent, accounting for 21.8 per cent of gross domestic product (GDP).
Debt market capitalisation fell 8.4 per cent in January to $14.7b, accounting for 7.1 per cent of GDP.