Global Uncertainty Continues To Impact Trading

· Values and volumes traded remain soft, particularly across wholesale markets due to ongoing global uncertainty and volatility

· Rise in debt and Exchange Traded Fund (ETF) markets as investors seek security

· ANZ announces intention to come to market to access capital to help it meet new regulatory capital requirements.

NZX has released its key market metrics for June 2022, demonstrating ongoing market volatility with continued soft trading in equities in wholesale and retail markets, but strong activity in debt markets.

The S&P/NZX 50 remains impacted by macro-economic and geopolitical events caused by inflation, rising interest rates and the war in the Ukraine. The June result is also impacted by fewer trading days, with a shorter month and two public holidays.

Total value traded across the NZX was $3.07 billion, a decrease of 20.93% from May. This was across both wholesale and retail markets, with wholesale down 21.4%, and retail down 15.2%.It is important to note that May’s increases were on the back of a MSCI Standard Index rebalance which saw Ryman Healthcare move out of the index.

June has seen an increase in value and volume trading in ETFs and debt. With average NZDX yields over 5% (up from 1.75% in June 2021) and a continuous steady flow of new debt listings through the second quarter, the NZDX is enjoying its busiest period this year.

Value traded on the NZDX in June was $228.3 million, completing an almost linear increase in debt value traded during 2022. Volume traded was $241.5 million. Value and volume traded are the highest since 2008, and the number of trades (5,322 in total) is the highest ever recorded.

NZX General Manager Capital Markets Origination Sarah Minhinnick says June was a strong month for debt listings, with five total listings (BNZ, ASB, Infratil, and Vector), including one new green bond listing by Genesis.

“This brings the total to 15 debt listings so far in 2022, adding approximately $3.4 billion to our debt market, and delivering income streams to investors,” Minhinnick says.

ETFs were also strong with value traded in June of $204.1 million. This represents the largest month this year with the exception of March. Volume traded in June was 71.5 million, replicating the strong value in trading.

“We are seeing more investors seeking security within debt and ETFs, given ongoing market volatility,” added Minhinnick.

Also in June, ANZ became the first bank to announce its intention to access capital to help it meet new regulatory capital requirements and manage its capital position, lodging a product disclosure statement this month for an offer of up to $250 million. This was in response to the Reserve Bank’s new regulatory capital requirements to ensure adequate levels of capital are maintained by New Zealand banks.

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