NZX cash trading slows in June, Ebos acquisition drives capital raising

The value of cash market trading on the NZX slowed last month, from a near-doubling in May on the coattails of the MightyRiverPower listing, though was still up from June 2012.

Total value traded climbed 20 percent to $2.7 billion in June from the same month a year earlier at an average daily value of $141 million, according to NZX’s monthly shareholder metrics. That was off the $5 billion value traded in May at a daily average of $218 million. Total trades climbed 21 percent to 81,807, for a daily average of 4,832.

Share trading continued to drive the local market, with equity transactions up 23 percent to 89,693, for a 21 percent gain in value to $2.6 billion, while the debt market kept tapering off with a 22 percent fall in trades to 2,638 and a similar decline in value to $75 million.

In the year to date, trades have climbed 18 percent to 528,576 from the same period in 2012, with a 56 gain in value traded to $20.8 billion.

The stock market has attracted renewed interest with the government’s partial privatisation programme kicking off with MRP in May, and Meridian Energy slated for a listing later this year. MRP attracted a total of 113,857 individual New Zealand investors in the public sale at $2.50 a share, but has since come off the boil, closing at $2.25 yesterday.

Spy software maker Wynyard Group and dairy company Synlait Milk are set to join the NZX this month in initial public offerings looking to raise about $185 million.

Some $305 million of new capital was raised in June in 32 events, of which $236 million was in primary equity, $1 million from dual and secondary equity and $68 million in new debt.

Healthcare and pet care products maker Ebos Group raised $90 million in a private placement as part of a $1.1 billion acquisition, and will raise a further $149 million in July when its rights issue settles.

Companies have raised $885 million of new capital in the year to date, of which $642 million was primary equity, $150 million in secondary and dual equity and $93 million in debt. Some $3.8 billion of new capital has been listed on the exchange.

NZX’s equity market capitalization was $72.9 billion, or 34.4 percent of gross domestic product, as at June 30, 28 percent higher than a year earlier. Debt market capitalisation was $13.8 billion, or 6.5 percent of GDP, down 11 percent from June 2012.

Shares in NZX were unchanged at $1.32 yesterday, and have gained 9.1 percent this year.