Bumper November for NZX

Last updated 11:48 04/12/2013

Relevant offers

Industries

Two new housing areas in south Auckland to provide 1800 homes Pumpkin Patch gets new chief, warns of lower earnings BullionBuyer gold trader sentenced to prison Wellington-based Open Polytechnic to sell its online education platform iQualify Briscoe's Rod Duke: the man who would own Kathmandu Housing - infrastructure parcels could woo global investors: Joyce Christchurch's convention centre could be scaled down Eden Project founder has a vision for Christchurch Taco Bell could soon open in NZ through Restaurant Brands Helen Clark wins Kea World Class New Zealand Award

The New Zealand stock exchange had a jump in the volume and value of trades last month compared with November last year.

Forsyth Barr broker David Price said 2013 had probably been the best year for equity raising for about 25 years.

NZX monthly metrics showed total trades in the cash market were up 74.5 per cent to 141,143 last month compared with November last year.

The total value traded last month was $5.4 billion, up 76.9 per cent compared with the previous period.

Price said the increase in activity was a combination of more equity raisings or initial public offers (IPOs) and more placements, or 2POs.

"I'm actually trying to cast my mind back to a time when we actually had more in the way of raisings," he said.

There were 16 capital raisings last month, taking the total for the year to November to 218.

The results showed there had been 1,084,072 trades this year to November, up 31.6 per cent compared with last year.

The total value of this year's trades was $39.5b, up 47.9 per cent.

Price said that as well as the asset sell-downs, companies such as Sky Television, Steel & Tube and Trade Me had become 100 per cent liquid, which had accentuated the volume.

The daily average value traded was up 85.3 per cent to $256 million. The average daily volume traded was up 82.2 per cent to 6721 trades.

Price said that despite the "huge amount of activity", trading was probably reaching its peak.

Genesis Energy was the only asset earmarked for sale next year.

"So it's a case of what other stocks will come to market," he said.

"There is more, there will be more, but the magnitude of them will be a lot smaller."

The NZX 50 traded 18.4 per cent higher last month than it did in November last year.

The total amount of capital raised for the year to November was $3.4b, with $235m raised last month.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content