NZX share trading lifted in May, market hit by uncertainty

NZX share trading lifted in May compared with April but fell against the same month last year. Photo / File

NZX data showed the value of share trades across the exchange rose by 22 per cent in May to $3.87 billion from the previous month, but fell by 8.1 per cent against the year-ago figure.

The increase over the month was felt in wholesale trading, which lifted 24 per cent, while retail trading was also strong, rising 10 per cent.

Wholesale market total trades increased 20 per cent from April to May while retail trades remained flat.

The increases were on the back of an MSCI Standard Index rebalance on May 31 which saw Ryman Healthcare move out of the index.

"The S&P/NZX 50 remains impacted by ongoing uncertainty and volatility caused by inflation, rising interest rates and geopolitical events," the exchange said.

Australian fuel company Ampol listed on the NZX following the completion of its merger with Z Energy.

May saw strong capital raising activity, with equity capital raises from Air New Zealand and Vital Healthcare.

Debt capital raises were completed by Mercury and Channel Infrastructure and announcements of an infrastructure bond, green capital bond and senior bond issuance were made by Infratil, Genesis and BNZ.

"Despite challenging times and volatility in global markets, NZX continues to provide businesses with pathways to raise capital to support their next steps for growth," said Sarah Minhinnick, NZX's general manager capital markets origination.

"We are also seeing ready income streams for investors as bond yields rise," she said in a statement.

NZX credited its derivatives tie-up with the Singapore exchange (SGX) for strong activity on its dairy platforms over the month.

The record for overall daily futures volume traded was topped with 5685 lots traded, largely driven by a big trading day for skim milk powder futures and butter futures.

The daily volume record for skim milk powder futures was broken with 3600 lots traded, breaking the prior record by 43 per cent.

The daily volume record for Butter Futures was also broken with 2025 lots traded, up 32 per cent.

Overall, across the NZX's suite of eight dairy contracts, 37,156 lots were traded in May, an increase of 89 per cent on May last year.