October 6, 2021 – Shares of NZX-listed companies are emerging as the asset class of choice for managed funds, KiwiSaver and other pension plans, with the Reserve Bank’s latest QMF survey showing a total of nearly $ 250 billion under management as of June 30, 2021.
NZX Managing Director Mark Peterson said it was a great pride for the New Zealand Stock Exchange team to see holdings of listed stocks rise 7% to a record high of 119.3 billion dollars, with significant investments in local businesses.
NZX-listed and international stocks now represent more than 41% of total funds under management, up from around 35% in early 2020 before the COVID-19 pandemic.
“As New Zealand stock exchange, Te Paehoko o Aotearoa, we always want to be seen as the natural home for Kiwi businesses, and we also recognize the importance of local capital markets in ensuring domestic investors have easy access and fast to a pipeline of local businesses.
In addition to investments in managed funds and pension plans, Mr Peterson says New Zealand has a relatively large retail investor base and over the past year NZX has seen the re-engagement most important with stocks. [shares] as an investment category over the past 30 years.
“Retailer participation has reached unprecedented levels in our stock market, aided by the growing popularity of online trading platforms – Jarden Direct, Sharesies and ASB Securities – which allow easy and low cost access for retail investors and informed individuals.
“It’s positive for our market and stimulates interest and investment among our issuers,” he says. “We are absolutely proud to be able to allow Kiwis to have global innovators Fisher & Paykel Healthcare, Pushpay, Pacific Edge, Serko and other industry leaders such as Mainfreight right in front of them and at their fingertips, as that choice investment on NZX.
The total value traded on the NZX of $ 27 billion in the first half of 2021, across more than eight million transactions, reflects increased interest from all segments of investors.
The COVID pandemic significantly boosted and accelerated activity in the New Zealand equity market in 2020, and NZX’s business continued to operate at a structurally higher level in 2021.
Mr. Peterson says there is a strong recognition of the value of being listed on NZX.
“The COVID crisis has demonstrated the clear value of being listed on NZX; easy access to capital and we believe that’s a factor, along with NZX’s origination business, in the growth we’re seeing in new listings.
Primary capital raised in the first half of 2021 rose 47% to $ 3.4 billion.
“As all businesses and investors face the prospect of high uncertainty – including the prospect of rising interest rates and rising inflation – we work closely with our clients to ensure that they are aware of the opportunity to raise different forms of capital to meet their needs. “
Mr. Peterson says NZX’s focus remains on the unique role that NZX and our public procurement can play in supporting the resilience and long-term success of our customers and the economy.
With retail and institutional investors seeking a wider range of investment opportunities and ready to support our NZX-listed companies, we are optimistic about the pipeline and the potential for new listings, ”he said. declared.
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