New Zealand Stock Exchange tagged posts

Capital Market Development Paper Released

December 16, 2009 New Zealand FinanceNew Zealand Taxation

Government Building @ WellingtonOn December 16th, the Capital Market Development Taskforce (CMDT) released their final report to the New Zealand Government.

The Taskforce’s paper consists of six groups of recommendations for New Zealand’s capital markets. According to the report, if implemented, the ideas will improve the contribution of capital markets to the country’s economic growth and bring significant fiscal benefits to New Zealanders.

The CMDT has proposed that regulations be established to improve financial advisory services and information available to investors, along with improving investment literacy. Suggestions include replacing investment statements and prospectuses with more standardized disclosure documents. Warnings should be applied to high-risk and complex investments products.

The paper identifies...

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New Zealand Stocks Undervalued

October 28, 2008 New Zealand Finance  No comments

According to a report released by Forsyth Barr, stocks traded on the New Zealand Stock Exchange (NZX) are currently trading at a median of 33.2% below their true value.

Even measured via a long run average prior to 2003, the NZX has been trading at a below value median of 8.2%, but this figure took an uncharacteristic sharp turn downwards in late 2007 to reach its current level of 33.2%. The NZX index has fallen over 1000 points since May, 600 of those have been since the post September “Financial Crisis”. It would seem that this trend will continue with the NZX falling further amidst the increased volatility of international markets.

Commenting on the report, Rob Mercer of Forsyth Barr research, said that while current prices are technically very good value for money, he does not expe...

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Bank Guarantee Scheme Coming Sooner

October 24, 2008 New Zealand Finance  No comments

The government’s proposed bank deposit guarantee scheme is planned to be instituted before the November 8th election.

While previous government statements placed the timeline for the scheme as being before Christmas Day. This announcement seems to be a warning or an indication of intent so far, as there were a number of details omitted by Michael Cullen concerning the Bank Deposit Scheme. Predominantly the missing details are those surrounding the involvement and requirements from the Australian government and banks in regards. However, previous statements made by Michael Cullen indicate that there might be a requirement for participating Australian banks to float set amounts of their shares on the New Zealand Stock Exchange.

This quickening of pace is not thoroughly welcome by some key ...

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Short Selling Still an Option

September 23, 2008 New Zealand Taxation  No comments

The New Zealand Stock Exchange (NZX) have issued a statement saying that they will not be following the Australian Stock Exchange(ASX) in banning short selling of stock.

The Australian Securities and Investments Commission (ASIC) banned all forms of short selling on the 19th of September, widening the previous ban on “naked” short selling to include “covered” short selling also. While this action was a response to the turmoil caused on the ASX by naked short selling, the NZX does not see enough short selling activity to warrant such a ban at this point.

Geoff Brown, the NZX markets development manager, was quoted as saying that New Zealand firms are already required to disclose any short sales and that in the eyes of the NZX, short selling was a legitimate activity...

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