NZX - NZ Exchange

[Getty]

Its time to play a bit of "Communication Breakdown" by Roy Orbison,

"too much concern for money to burn"

"its a sad situation,
Too much worry"

[Getty]

Is this DDoS the code for DD Smash?
I didnt know they were listed

Ah, its DD crash!

[see weed]

ASB not sure when back up and running. I gave them permission to take the rest of the day off and go have a drink at the local.

[iceman]

NZX website says pre-open will commence at 14.45 hrs and normal trading at 15.00 hrs

[limmy]

Unpredictable, how unprofessional.

[limmy]

NZX under attack, for the 3rd day in a row.

[bottomfeeder]

Someone out there is shorting NZX. Won't finish until they can buy back at a reasonable price.

[KJMLimited]

NZX haven't covered themselves in glory with their comms. They are quick to jump on listed companies when disclosure rules are breached, especially those continuous disclosure rules around material information. Is this event material? It would have to be IMO. NZX Regulation needs to be asking these questions of NZX management. Confidence in the integrity of the market will take a knock so that's FMA territory so where are they? Let's hope for a fix today as if not the outcome will be 1 full days trading out of 9 days (Saturday 22nd to Sunday 30th). That is a long time in modern-day investment markets. What if there had been a Covid-19 negative development in that time?

[Balance]

NZX haven't covered themselves in glory with their comms. They are quick to jump on listed companies when disclosure rules are breached, especially those continuous disclosure rules around material information. Is this event material? It would have to be IMO. NZX Regulation needs to be asking these questions of NZX management. Confidence in the integrity of the market will take a knock so that's FMA territory so where are they? Let's hope for a fix today as if not the outcome will be 1 full days trading out of 9 days (Saturday 22nd to Sunday 30th). That is a long time in modern-day investment markets. What if there had been a Covid-19 negative development in that time?

Should know NZX by now - one rule for them and certain select companies, and another rule for others and yet another for retail investors ('punters' according to NZX).

[Waltzing]

the internet browser model was never designed for multi user access. if a less than KFC model of consumption. i really dont know why business thought they could scale it up. To believe this model was ever going to deliver anything other than a junk model is not event worth thinking about. the Dom model a business model... it was never going to work but business loved the cost reduction and the geeks loved the money... pack with the devil..its a wonder its lasted this long.. its called a sticking plaster technoloy , just so many layers... a heath robinson. The DOM is a disaster! Of course with my other hat on ... yes its amazing!!!! Look data anywhere on any device , what could go wrong!!!!

the only solution is to go to a certificate solution. Sure the average person with 10 dollars to invest wont bother but anyone who really wants to invest should be certificated and another public site for documents if you dont have certificate access.

Inverstors need protection and this open internet solution has to be restricted by certificates.

[MarineSalvage]

NZX are using the same wet bus ticket on themselves as they use for anyone else... Cannasouth and Blackwell etc etc...
NZX haven't covered themselves in glory with their comms. They are quick to jump on listed companies when disclosure rules are breached, especially those continuous disclosure rules around material information. Is this event material? It would have to be IMO. NZX Regulation needs to be asking these questions of NZX management. Confidence in the integrity of the market will take a knock so that's FMA territory so where are they? Let's hope for a fix today as if not the outcome will be 1 full days trading out of 9 days (Saturday 22nd to Sunday 30th). That is a long time in modern-day investment markets. What if there had been a Covid-19 negative development in that time?

[nevchev]

SPEND SOME MONEY AND GET S😈😠T RUNNING.Its beginning to look like a third world market.Its been pathetic for some time,last few days is just the icing on the cake!!

[stoploss]

Fingers crossed, I'm not taking any money on how long it stays open :D

To: Market Participants
From: NZX Limited
Date: Friday, 28 August 2020
Subject: Markets to open as normal
Message:
NZX’s markets will open as normal today, following ongoing work to put in place additional measures to maintain system connectivity, and address the severe DDoS attacks from offshore this week.
NZX has been continuing to work with its network service provider, Spark, and national and international cyber security partners, including GCSB, to address the recent cyber-attacks.
NZX has been in close contact with market participants, and appreciates the support and level of understanding during the periods of disruption to trading.
ENDS

[tango]

Pfft. It's down already

NZX have got RedShield which should protect against DDOS and it's doing its job but the exchange isn't a happening thing
11891

[nztx]

Pfft. It's down already

NZX have got RedShield which should protect against DDOS and it's doing its job but the exchange isn't a happening thing
11891


It might be time to put a call in to the Real Professionals to sort things out..

[KJMLimited]

Imagine if the government and AIR had wanted to get a $1b capital raise via a placement and rights issue underway last week. Who would take a placement when the market presents such liquidity risk? It would have been impossible. That's why NZX need a good roasting and may still be vulnerable if capital raisings migrate to the ASX.

[Jantar]

Has the NZX been hit again. No trades today so far and they are showing this message "The open of the NZX Main Board and Fonterra Shareholders Market has been temporarily delayed.
Further information will be provided shortly."

[Greekwatchdog]

Not the only NZ business either this morning...

[winner69]

Not the only NZ business either this morning...

...and bull....’s connectivity is broken as well

[King1212]

Another fxkg annoying Monday!

[Master98]

https://www.stuff.co.nz/business/industries/123679644/cyberattackers-threaten-to-publish-private-data-allegedly-stripped-from-auckland-financial-services-company

Cyberattackers threaten to publish private data allegedly stripped from Auckland financial services company

[peat]

Another fxkg annoying Monday!

such a pack of useless carnts

[LaserEyeKiwi]

anyone have any idea what's going on?

[peat]

please post here if there is life....

'more information being provided shortly' is a bit vague for this persons liking.

[peat]

Stock market operator NZX has delayed the opening of the market due to aconnection issue between its core clearing and settlement system, BaNCS, andtrading platform X-stream.
The exchange announced the main board and the Fonterra Shareholders Marketwould not open at 10am as usual, instead the “pre-open” would be extended.
The delay has been caused by a connection issue with the interface which connects BaNCS and X-stream. The NZX said it would provide updated sessiontimes at least 15 minutes prior to the open of trading but did not say whentrading would be able to begin.

[iceman]

The USX was not working Wednesday & Thursday and announced a halt on their whole platform on Friday. Have been working on it over the weekend with some visible dummy trades and announced this morning halt had been lifted. But last time I looked about 45 minutes ago it still seemed to be experiencing issues. Not sure if its related but blimmin annoying that both NZX and USX are down !

p.s. USX now seems to be up and running

[Ggcc]

trading will commence at 11.30

[Hoop]

trading will commence at 11.30
11.50am for most of the investors with the annoying 20 min delay..
Having to point and click each stock for up to the minute stock price is rather tedious and makes me wish the monopolistic NZX had competition that would look after their customers.

[peat]

11.50am for most of the investors with the annoying 20 min delay..

who do we blame for that though?

[Hoop]

who do we blame for that though?
A monopolistic organisation (NZX) which is slow to change with the times and has no reason to quickly change pricewise or techologicallywise..More than 10 years ago data was more expensive to transmit and much was done manually so fair enough to pass those costs onto the consumer.. however these days streaming data is capable to be automated thoughout and at a very low cost..
Who do we blame?.. Too much red tape regulations hampering the progress within the System Structure... Lack of "Human Outcry"..No noises from the watchdogs who oversee financial/commerce activity..The next level down in the regulated systemic structure (brokers) have some power to force change but as they have oligopolistic power they have no reason to "rock the boat" and so pass the exchange high costs + their added high costs down to the next systemic level and so on down until it reaches the powerless consumer (investor) who for some unfathomable reason are willing to accept it without much more than a quibble.

[BlackPeter]

What an amazing uptrend for one of the smallest (but certainly not most nimble) dinosaurs under all the stock exchanges.

average (long term) PE = 40; forward PE (based on analyst estimates) = 34; earnings CAGR (backwards) =3, forwards = 4;

Is this a case of buy anything which moves ... or do people see sense in what happened to the NZX share price? Even the dividend return is now below 3% ... and certainly not risk free ...

[nztx]

What an amazing uptrend for one of the smallest (but certainly not most nimble) dinosaurs under all the stock exchanges.

average (long term) PE = 40; forward PE (based on analyst estimates) = 34; earnings CAGR (backwards) =3, forwards = 4;

Is this a case of buy anything which moves ... or do people see sense in what happened to the NZX share price? Even the dividend return is now below 3% ... and certainly not risk free ...

Indeed quite a recent SP upwards trend - I remember when it was nearer the $1.20 mark no so long ago

perhaps the perception is steady as she goes - the exchange stock is as safe as houses (as long as things overall keep appreciating)

[Greekwatchdog]

My average is $1.10 and is number 4 in my portfolio. I think this is a nice defensive stock and pretty safe, could say boring. They have a broad range of products so balanced earner. I like their plan and look forward to seeing how they execute. Lots more interest in market today from a younger generation bodes well.

[Cricketfan]

Something weird going on with their website this morning...
https://i.imgur.com/iiOLUnA.png

[nztx]

Something weird going on with their website this morning...
https://i.imgur.com/iiOLUnA.png


Indeed .. perhaps someone @ NZX took off with the Friday's database in their lunchbox & haven't returned ? ;)

[nztx]

Sorry Folks - due to current site lag -- the deleted post was a double-up :)

[mikelee]

yeah, AIA's opening price showing as 0.00
I though even the current price of $7.50 + was an error too :eek2:
It's not just the NZX site though, I've noticed that it's really hard accessing other offshore sites too.

[LaserEyeKiwi]

good news for NZX KiwiSaver product: it has been selected as one of the 6 default KiwiSaver providers

https://www.nzx.com/announcements/372176

[LaserEyeKiwi]

more coverage:

https://www.stuff.co.nz/business/300307393/amp-anz-and-asb-lose-out-in-kiwisaver-default-providers-overhaul

[silu]

more coverage:

https://www.stuff.co.nz/business/300307393/amp-anz-and-asb-lose-out-in-kiwisaver-default-providers-overhaul

Good. What was more frustrating? Seeing some of those default providers charging heaps for not much or trying to get a couple of my friends to get out of those funds. Ultimately I actually blame my friends. The amount of money they left off the table is mind boggling.

discl. I have SuperLife as my Kiwisaver provider and am very happy with the returns I got so far and their fee structure.

[Davexl]

NZX on the blink again - not reporting search lookups for some companies or stock info...intermittently, now back online?

[peat]

The big dude at Manson’s said this
He admits to once promoting a public stock listing for Mansons but now says private is right.

[SCOTTY]

Dow up 246 points last night. Could suggest a good New Year start for the NZ market tomorrow :)

[nztx]

https://www.nzherald.co.nz/business/top-of-range-annual-earnings-expected-for-nzx/HA2G6WFWA5ATGQCK6DNCPQQN4M/

Top-of-range annual earnings expected for NZX

What an impressive increase ;)

The market lapped it up so much the SP slid in sympathy with most other listings :)

To think that the Market darling at 95c in March 2020 climbing to $2.15 in January 2021
didn't even blink before continuing it's mostly downhill slide since

Does nobody like their dividends being increased in multiples of 1/10 of a cent ? ;)

[kiora]

Another high flyer slips by
https://www.nzherald.co.nz/business/ai-avatars-auckland-startup-soul-machines-rides-metaverse-hype-with-104m-raise/QWP2TMGTZOVMDH4SMYKJX3KEXM/
https://www.soulmachines.com/

[nztx]

Another high flyer slips by
https://www.nzherald.co.nz/business/ai-avatars-auckland-startup-soul-machines-rides-metaverse-hype-with-104m-raise/QWP2TMGTZOVMDH4SMYKJX3KEXM/
https://www.soulmachines.com/


I see that .. Darn another one got away :)

Must be too many holes (or just too darn high fees) in NZX's Butterfly net ;)

[LaserEyeKiwi]

Full year results + retail placement + announcement they are entering an ownership stake in another dairy auction platform with Fonterra:

https://www.nzx.com/announcements/387398

[Shareguy]

I currently do not hold, but have placed an order in the shortfall institutional bookbuild. May or may not get them we will see. Seems a good entry price for a “moat” protected business with some growth potential with new purchases. Sure the asx has and is taking business but I see this as a safe bet stock.

Craigs have just released a note as follows

NZX have announced a $44.3m equity raise via a fully underwritten pro-rata 1 for 9 accelerated renounceable entitlement offer, with the use of proceeds going toward 1) replenishing the balance sheet post the ASB acquisition ($25m), which will reduce gearing down from c.20% to c.13% 2) funding the investment into GDT ($12.5m), and additional growth investment into GDT, subject to Board approval ($3.2m); and 3) to provide capacity to support potential investment across the business as it continues to scale. The issue price of the shares will be $1.42, which is a 15% discount to the dividend adjusted theoretical ex-rights price of $1.67 and an 16.4% discount.

WHATS YOUR THOUGHTS ?

[Greekwatchdog]

Shareguy, I sold out at $2.00 sometime ago. My average was buy was $1.07. I am looking for an re entry point and think this is it once market reopens. I see it as a inflation proof, defensive place to put your money. My advisers only concern is still not enough quality IPO's.

For Bars review.
NZX's FY21 result was solid with the company also announcing an acquisition to acquire a 33% stake of Global Dairy Trade (GDT), funded by a proposed capital raise. We downgrade our rating to NEUTRAL on valuation grounds, with the stock trading on an FY22 PE of 30x and FCF yield of 1.8%. The company is raising NZ$44m to fund the acquisition through an equity raise which will cover both the stake in GDT of ~NZ$15m and repayment of debt for the previously announced NZ$25m acquisition of ASB's Superannuation Master Trust. The strategic rationale of the acquisition for NZX is to grow volumes across its dairy derivatives division. Although we believe long term opportunity exists around GDT we expect it to be a number of years before this translates to material cash generation. Whilst NZX remains a solid business, we expect to see a delay in anticipated operating leverage following both the dual acquisition and growth initiatives across the business.


link
NZX Code NZX
Theoretical Share price NZ$1.67
Target price NZ$1.72 (from 2.03)
Risk rating Medium
Issued shares 312.3m
Market cap NZ$522m
Avg daily turnover 184.8k (NZ$353k)
link
Financials: Dec/ 21A 22E 23E 24E
NPAT* (NZ$m) 16.4 17.2 18.6 22.5
EPS* (NZc) 5.8 6.1 6.6 8.0
EPS growth* (%) -7.8 4.9 8.0 21.3
DPS (NZc) 6.1 6.1 7.5 8.0
Imputation (%) 100 100 100 100
*Based on normalised profits
link
Valuation (x) 21A 22E 23E 24E
PE 28.8 27.5 25.4 21.0
EV/EBIT 21.6 21.3 18.6 15.5
EV/EBITDA 14.5 14.0 12.6 11.1
Price / NTA n/a n/a n/a n/a
Cash div yld (%) 3.7 3.7 4.5 4.8
Gross div yld (%) 5.1 5.1 6.2 6.7
What's changed?
Earnings: FY22 EBITDA reduced -2.2% to NZ$37.7m vs underlying FY22 EBITDA guidance of NZ$34.8m to NZ$39.3m
Target price: Reduced -15% from NZ$2.03 to NZ$1.72 due to 1) WACC changes, 2) dilution from capital raise, 3) reduction in long term margin assumption, 4) slight increase in capex assumptions, and 5) earnings revisions
Rating: Downgraded from OUTPERFORM to NEUTRAL
Global Dairy Trade (GDT) details
NZX has signed a commercial term sheet to acquire a 33.3% stake in GDT from Fonterra (FSF) for NZ$15m (including expenses associated with development), alongside the European Energy Exchange (EEX) which is expected to acquire a third of the business. The deal is likely to be completed in mid-2022 although it remains subject to approval from the relevant competition law authorities, including those in Europe (although we expect this to be a formality). The GDT acquisition is complementary to NZX global dairy derivatives market, currently operated in partnership with the Singapore Exchange (SGX). The acquisition provides opportunities to NZX through 1) greater control of the dairy auction which it hopes will allow it to hold more frequent auctions, 2) attracting more participants to the GDT due to it being a more neutral entity, and 3) increasing the number of risk management contracts available with the long term aspiration to grow financial products to many multiples of the physical market. ​​​​​​​


NZ$44m capital raise to fund both GDT and ASB acquisitions
NZX is intending to raise NZ$44m of capital thorough a 1 for 9 pro-rata accelerated renounceable entitlement offer. The issue price of NZ$1.42 represents a -15% discount to the dividend adjusted theoretical ex-rights price (TERP) of NZ$1.67 on 16 February 2022. NZ$12.5m will be used to fund the GDT acquisition, NZ$3.2m to fund growth opportunities relevant to the acquisition and NZ$25m to pay down debt taken out to finance the ASB acquisition that was announced in late 2021 and completed earlier in February 2022.

[Shareguy]

Thanks Greekwatchdog. If I miss out on the bookbuild might buy some anyway depending how close it gets to terp.

[LaserEyeKiwi]

I think it’s obvious that NZX is increasingly turning into a funds management firm. It’s already in a position that it will soon be its largest revenue generator, and they clearly stated they are looking to continue growing funds under management through acquisitions.

Wouldn’t surprise me if eventually the business is split into two separate companies.

[LaserEyeKiwi]

So the rights issue looks to have been an absolute disaster for the share price - or am I missing something?

[Grimy]

Maybe just bad timing?

[Jim]

Is the rights worth subscribing ??

[nztx]

Shortfall Offer @ min $1.42 received now

Think I'll pass on that too :)

a year ago $2 ; 22 Dec 2021 $1.85 ; Close 3 Mar 22 $1.43

Once a market darling climbing out of the Covid dip - not much market love now IMO :)

[Jim]

The share price is now $1.38. Cheaper to buy it than to subscribe at $1.42

[nztx]

The share price is now $1.38. Cheaper to buy it than to subscribe at $1.42


think Grimy's earlier post might be spot on

$1.38 Yeah Nah Nah - still a pass on the Offer from the Hawk

I'll wait until the thing returns closer to the Solitary Buck level :)

[Grimy]

I think last time I owned some NZX my average was $1.05. I'd be happy with something close to that again.

[Waltzing]

If Luxon gets in Jenny will be chatting over the BBQ about privatising every government service they can find to give the share market some depth.

She has joined the Tax Payer Union. There stated goal now is see how many departments they can get rid off.

Imagine the health and education sectors even on the block... Boy what a stock market that would be..

An infrastructure bank that does private public partners for local and regional councils and statutory law to protect the assets from being stolen by government.

Government can lend money to the national infrastructure bank but not directly to councils.

It could make gifts to councils to help with things like cultural projects.

Whatch the NZX take off.

[Jim]

Must be a large short fall from the existing existing shareholders to cause a suspension to today trading. Watch out for the lollies scramble distributions of cheapy from the underwriting bankers

[nztx]

https://www.nzx.com/announcements/388877


Eligible Retail Shareholders elected to take up approximately 34% of their Entitlements.


Approximately 68% of Eligible Institutional Shareholders elected to take up their Entitlements.


That CR went well with pricing almost at market - $1.43 wasn't it ? ;)

How could they have managed to get things so wrong ?

Timing, pricing ?

Well done NZX - you probably should be the experts in the market ;)

perhaps $1.10 or $1.20 may have worked better :)

Nothing like now depressing the NZX share price even further with a lolly scramble for all the unwanted
new shares being unloaded to complete the exercise

Would a SP of $1.00 soon be the final egg on the faces of the Board of the Market Operator ? ;)

[Sideshow Bob]

Mark Peterson on "Shared Lunch" on Thursday, run by Sharsies and Business Desk. Might get asked 1-2 interesting questions.....

Shared Lunch: NZX Deep Dive - Crowdcast (https://www.crowdcast.io/e/170322/register?fbclid=IwAR35BrEXyBPWoCpMx9NnJ6TzxAvboZ9P 5dTCl0gs6Yt9CHkTfdx2bprjd7g)

[LaserEyeKiwi]

Mark Peterson on "Shared Lunch" on Thursday, run by Sharsies and Business Desk. Might get asked 1-2 interesting questions.....

Shared Lunch: NZX Deep Dive - Crowdcast (https://www.crowdcast.io/e/170322/register?fbclid=IwAR35BrEXyBPWoCpMx9NnJ6TzxAvboZ9P 5dTCl0gs6Yt9CHkTfdx2bprjd7g)

For a moment I thought “NZX Deep dive” was referring to the share price action as of late. Maybe it is.

[JohnnyTheHorse]

For a moment I thought “NZX Deep dive” was referring to the share price action as of late. Maybe it is.

Too good :p

I'm in for a trade back to the $1.50-$1.60 region. Oversold in that market weakness. Was good risk/reward.

[LaserEyeKiwi]

Expressions of interest for the sale of Kiwiwealth closed last week. I think NZX likely will have put in a strong bid for it. If it is successful, I think NZX actually then becomes more a funds management business than a stock exchange operator. One would think a spin off or split of its two functions would be on the cards soon if they successfully acquire kiwiwealth.

[bull....]

terrible update today looks like wealth management fee's is the only thing doing well.
volumes going thru the exchange dont look good . ie liquidity is getting worse
chart looks like it wants to go back to all time lows

[Poet]

Is this champion third rate outfit offline again??

[BlackPeter]

Is this champion third rate outfit offline again??

Does work currently for me ... however, we had a handful of power outages today (due to strong wind) - maybe this was a problem for others as well?

But hey - its anyway the best stock exchange in the land ... and, of course punching above its weight and fixing whatever is broken with number 8 wire. She'll be right :p ;

[LaserEyeKiwi]

Healthy-ish results today:

https://www.nzx.com/announcements/397205

• Operating earnings of $17.4 million up 2.8%
• Net profit after tax (NPAT) of $7.4 million, down 3.2%
• Interim dividend of 3.0 cents per share, fully imputed
• FY2022 Operating Earnings1 expected to be between $33.5 million to $38.0 million.

[nztx]

Healthy-ish results today:

https://www.nzx.com/announcements/397205

• Operating earnings of $17.4 million up 2.8%
• Net profit after tax (NPAT) of $7.4 million, down 3.2%
• Interim dividend of 3.0 cents per share, fully imputed
• FY2022 Operating Earnings1 expected to be between $33.5 million to $38.0 million.


https://www.nzx.com/instruments/NZX/dividends

Heading for 4th year Dividends at same level - Int 3.0 cps Final 3.1 cps

Anything else other than consistency with little excitement added on top

Still gradually creeping up to the last Cap Raise 1.43 level

Difficult to see this one going to earlier higher levels, unless consistency is the flavour

How's business growth or attrition going ?

How many more listings have departed of recent times ?

Z , Dangerous Goods, PPH possibly in future along with NZO and possibly I have missed some
and more to be added ? ;)

How are newer bolt on businesses likely to be performing post the downturn or in future
- such as wealth management etc ? also factoring in interest rate rises

Money in da bank on interest might soon be edging closer to NZX's static div and yield

[LaserEyeKiwi]

https://www.nzx.com/instruments/NZX/dividends

Heading for 4th year Dividends at same level - Int 3.0 cps Final 3.1 cps

Anything else other than consistency with little excitement added on top

Still gradually creeping up to the last Cap Raise 1.43 level

Difficult to see this one going to earlier higher levels, unless consistency is the flavour

How's business growth or attrition going ?

How many more listings have departed of recent times ?

Z , Dangerous Goods, PPH possibly in future along with NZO and possibly I have missed some
and more to be added ? ;)

How are newer bolt on businesses likely to be performing post the downturn or in future
- such as wealth management etc ? also factoring in interest rate rises

Money in da bank on interest might soon be edging closer to NZX's static div and yield

They have actually branched out quite a bit recently with partnerships and new markets - the global dairy exchange being the latest example, with plans to introduce a new carbon trading platform as well. Wealth tech finally contributing to gross margin. Funds under management continues to grow via acquisitions and existing funds inflows.

Smartshares is actually I think where the biggest opportunity is on long term basis - low operating costs (its all indexes - no active management) the operating leverage potential there should be sizable. Possibly an eventual spin off opportunity to realize value.

However the disastrous capital raise gives me some doubt about management in terms of shareholder return maximization.

[Sideshow Bob]

https://www.nzx.com/announcements/408578

20 March 2022 – The NZX Board today announced it has withdrawn its endorsement of Rob Hamilton as Chair Elect of the NZX.

Following the announcement of the AUSTRAC proceedings against SkyCity Adelaide in December 2022, the NZX Board has considered Mr Hamilton’s position. After careful consideration, the Board has determined that, in the interests of NZX and noting its position as the operator of New Zealand’s capital markets, it can no longer endorse Mr Hamilton as proposed Chair while the proceedings remain unresolved.

As a result of Mr Hamilton no longer being the proposed successor to the Chair, Mr Hamilton has resigned as an NZX Director with immediate effect to help NZX move forward without any distractions relating to this matter.

Mr Hamilton is a former SkyCity Chief Financial Officer.

James Miller, who was due to retire at the annual shareholder meeting in April, has responsibly agreed to continue in the role as NZX Chair until a new Chair is appointed.
ENDS

[Sideshow Bob]

Maybe more to come out re Sky City??

Seems interesting timing when the last update from SKC was over 5 weeks ago, and Rob Hamilton has been chairman elect since October last year. Then all of a sudden things change and an announcement comes out on a Monday morning....??

[winner69]

Many ‘respected’ people have been / will be tainted by being with casinos in this part of the world …suppose one of the risks of working for companies that run these dens of iniquity

[gbogo]

nzx.com website now only seems to be available from within NZ. VPN required if overseas..

[Davexl]

While briefly chatting about NZX attrition have noted the following:

Cumulative Numbers - YTD


Number of trades
Total value traded
% of value on-market
9,038,164
$33,802 m
61.5%
-22.6
-9.7% -3.5%




22.6% down in number of trades, especially while % of on-market is going up,
NZX looks like a fast dying exchange to me - very concerning...
Don't know about prior years.

[Balance]

While briefly chatting about NZX attrition have noted the following:

Cumulative Numbers - YTD


Number of trades
Total value traded
% of value on-market
9,038,164
$33,802 m
61.5%
-22.6
-9.7% -3.5%




22.6% down in number of trades, especially while % of on-market is going up,
NZX looks like a fast dying exchange to me - very concerning...
Don't know about prior years.

Mark Weldon not only plucked the golden goose NZX of all its feathers to bed his nest, he extracted the last golden egg through surgery for himself and rendered the NZX incapable of laying any more golden eggs after that.

And while he was doing that, the NZX directors and the likes of Brian Gaynor praised Mark to high heavens until the stench of his deeds reached high heaven.

[Rep]

To paraphrase an old philosophical chestnut, I'd pose the question... "If a sharesie sell is fulfilled by a sharesie buy, does it make an NZX trade?"
As I understand it, this wouldn't change anything at the NZX listed company's share registry as they don't have records of the individual holders within the master sharesie holding...

NZX liquidity has been an issue for a long time and I can't see anything on horizon changing that.

The ugly truth is that New Zealand is a nation of house flippers with a low propensity for saving/investing leveraged up with overseas funded debt - with what meagre saving in Kiwisaver funds often being parked in global equities or hedge funds that outperform the NZX.

Cost of capital raising locally is far too high so many productive businesses raise money on the ASX or even further offshore (or eventually sell to highest bidder often offshore).

And the profound backlog of neglected infrastructure and infrastructure for growth has limited opportunity for private investment because of government policy and red tape.

The NZX reality is that it sits in a slow moving gyre continuing to head toward the eventual and final destination of irrelevance.

[Lego_Man]

To paraphrase an old philosophical chestnut, I'd pose the question... "If a sharesie sell is fulfilled by a sharesie buy, does it make an NZX trade?"
As I understand it, this wouldn't change anything at the NZX listed company's share registry as they don't have records of the individual holders within the master sharesie holding...

NZX liquidity has been an issue for a long time and I can't see anything on horizon changing that.

The ugly truth is that New Zealand is a nation of house flippers with a low propensity for saving/investing leveraged up with overseas funded debt - with what meagre saving in Kiwisaver funds often being parked in global equities or hedge funds that outperform the NZX.

Cost of capital raising locally is far too high so many productive businesses raise money on the ASX or even further offshore (or eventually sell to highest bidder often offshore).

And the profound backlog of neglected infrastructure and infrastructure for growth has limited opportunity for private investment because of government policy and red tape.

The NZX reality is that it sits in a slow moving gyre continuing to head toward the eventual and final destination of irrelevance.


Sadly you're 100% correct.

Exhibit A - Vulcan Steel, which i think is a really solid Trans Tasman company. Went for a dual listing on IPO, trades absolute pennies on the NZX. All the liquidity is in Aussie, and I bought it there because the NZX depth was a joke. Their NZX listing won't last more than another couple of years i think.

[Davexl]

Sadly you're 100% correct.

Exhibit A - Vulcan Steel, which i think is a really solid Trans Tasman company. Went for a dual listing on IPO, trades absolute pennies on the NZX. All the liquidity is in Aussie, and I bought it there because the NZX depth was a joke. Their NZX listing won't last more than another couple of years i think.

Am also a big fan of Vulcan. Managed to buy a big parcel on NZX, but it's quite volatile on negligible trading volumes.
The only thing that might save me ultimately is the higher number of on-market trades.

[Muse]

The NZX seems to be in a death spiral.

There are regular takeovers of NZX companies and bugger all floats. Re the later, why is that? The kiwisaver industry is huge so there is plenty of capital. Large private companies must baulk at the price to IPO on the NZX. MFB spent $14.1m on offer costs (it's marketcap is presently $37m!) and Vulcan spent $18m. Its appalling & short sighted that the local investment banking and legal industry charge that much money for vanilla floats of vanilla small and midcap companies. Two million tops for legal and financial due diligence, another million or two for the JLM, should suffice for a TRA type company to list.

I reckon if there were more companies on the NZX there would be more interest in the NZX as a whole and it would drag liquidity up. There are always comments on how things would trade higher on the ASX or in America - perhaps that from time to time may be true - but there have been plenty of dual listed companies that transitioned solely to the ASX and went no where. And we do have companies that trade on the NZX on high multiples - higher than their comps.

Getting rid of dual listings I reckon would be a start - there are some valid reasons for why companies want to be dual listed - but it fractures liquidity and increases offer costs.

[Greekwatchdog]

For Bars Review for those interested..

A strong finish to 2023 for global equity markets has been enough to solidify our forecast of NZX's FY23 EBITDA at the top end of its guidance range. The lift in asset prices, benefiting the Smartshares and Wealth Technologies divisions, has offset a challenging year for the Capital Markets division and core exchange operations. We expect FY23 to be trough earnings for this division, with trading volumes and capital raising levels to begin reverting back towards the historical trend in FY24, aided by a more favourable backdrop for interest rate sensitive New Zealand equities. We continue to see value in NZX, with our target price of NZ$1.42 only attributing value to Capital Markets and Smartshares divisions. OUTPERFORM.
link


NZX Code
NZX


Share price
NZ$1.08


Target price
NZ$1.42 (from 1.39)


Risk rating
Medium


C&ESG rating
B-


Market cap
NZ$349m


Avg daily turnover
211.0k (NZ$239k)






link


Financials: Dec/
22A
23E
24E
25E


Rev (NZ$m)
95.7
109.5
118.6
127.4


NPAT* (NZ$m)
15.3
13.5
17.1
21.8


EPS* (NZc)
4.9
4.2
5.3
6.7


DPS (NZc)
6.1
6.1
6.1
6.3


Imputation (%)
100
100
100
100




*Based on normalised profits







link


Valuation (x)
22A
23E
24E
25E


PE
22.2
25.9
20.5
16.2


EV/EBIT
15.4
15.2
13.0
10.6


EV/EBITDA
9.6
8.9
8.1
7.1


Price / NTA
26.3
n/a
n/a
n/a


Cash div yld (%)
5.6
5.6
5.6
5.8


Gross div yld (%)
7.8
7.8
7.8
8.1











What's changed?


Earnings: FY23 EBITDA reduced -2% to NZ$40.3m, changes to later years negligible
Target price: Increased +3cps (+2%) to NZ$1.42 driven by rising peer multiples.


December 2023 rounds out a soft year for core exchange operations
NZX reported a soft set of operating metrics for December 2023, even after seasonality was taken into account. Value traded was the lowest for any month since April 2012. Consequently, NZX fell short on all three of its FY23 targets for the Capital Markets division: value traded (-15% miss), capital raised (-11%), and dairy lots traded (-3%).
Fisher Funds deal a good start to critical year for Wealth Technologies
Fisher Funds selected NZX’s Wealth Technologies platform (NZXWT) for its Private Portfolio Service (PPS). We understand PPS is ~NZ$1.6b, which once onboarded will grow NZXWT’s funds under administration (FUA) to ~NZ$13b. The PPS FUA is expected to be onboarded before the end of 1Q24. FY24 is an important year for NZXWT with a target to achieve cash flow breakeven on a monthly basis by the end of the year. For it to achieve this target, without cost out measures, we estimate it needs to grow FUA to ~NZ$20b over the next 12 months, assuming limited mix changes.
Local government asset sale considerations a positive
Local and regional councils in New Zealand are considering partial sales or further selldowns in assets, the result of stretched balance sheets and significant investment needed into infrastructure. This follows Auckland Council's decision to reduce its stake in Auckland Airport (AIA) in 2023. The mixed ownership model (e.g. NZ electricity generator/retailers) is one option open to sellers. NZX benefits from the mixed ownership model across a variety of different revenue lines (trading volumes, annual listing fees, and capital raising) and further selldowns improve liquidity by increasing the free float. Any new listings would represent upside to our current forecasts which assumes the IPO market remains dormant.

[kiwical]

Getting rid of dual listings I reckon would be a start - there are some valid reasons for why companies want to be dual listed - but it fractures liquidity and increases offer costs. I agree that dual listings is silly, but that would mean we lose another large chunk of listings. Or do you mean get rid of them from the Australian market and keep them here?

[Bjauck]

The NZX seems to be in a death spiral.

There are regular takeovers of NZX companies and bugger all floats. Re the later, why is that? The kiwisaver industry is huge so there is plenty of capital. Large private companies must baulk at the price to IPO on the NZX. MFB spent $14.1m on offer costs (it's marketcap is presently $37m!) and Vulcan spent $18m. Its appalling & short sighted that the local investment banking and legal industry charge that much money for vanilla floats of vanilla small and midcap companies. Two million tops for legal and financial due diligence, another million or two for the JLM, should suffice for a TRA type company to list.

I reckon if there were more companies on the NZX there would be more interest in the NZX as a whole and it would drag liquidity up. There are always comments on how things would trade higher on the ASX or in America - perhaps that from time to time may be true - but there have been plenty of dual listed companies that transitioned solely to the ASX and went no where. And we do have companies that trade on the NZX on high multiples - higher than their comps.

Getting rid of dual listings I reckon would be a start - there are some valid reasons for why companies want to be dual listed - but it fractures liquidity and increases offer costs.
Is Kiwisaver huge? For an OECD with NZ's population it is quite small. There are few incentives for Households to use KiwiSaver as a way to save more than the barest small minimum. Investor housing still remains the efficient and preferred way to accumulate savings. Many pension schemes overseas are more tax efficient and more developed. Also the proportion of Kiwisaver savings being invested in overseas equities far exceeds those invested domestically.

The plight of listings on the NZX is the result of the totality of NZ"s investment environment and tax structure. The costs of listing and access to capital once listed are part of that. Without dual listings the number of listings and capitalisation of the NZX companies would be even smaller.

[Muse]

My thought re dual listings was companies that IPO should do so on just the nzx and not across multiple exchanges - unless it was a really large company.

[Rawz]

Companies like TASK should have stayed on the NZX. Gets lost on the ASX and is now just one of many hundreds of micro caps doing their thing.
If it was on the NZX punters would probably have it back to $1

[Sideshow Bob]

The NZX seems to be in a death spiral.



Lots of negative numbers here......:mellow:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZX/425506/411769.pdf

[bull....]

Lots of negative numbers here......:mellow:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/NZX/425506/411769.pdf

not surprising.
there market discovery rule has caused a lot of traders to leave the nz market hence liquidity keeps declining.

[Sideshow Bob]

A good portion of Sharesies money would go offshore. But interesting to look at their top 10 - plenty of buying in Smartshares

14931

[Muse]

regarding nzx limited - as a share/investment - the value is in its funds management business (IE smartshares et al). that is growing very well and will scale as leverage kicks in. had 33% growth in FUM though there was a small acquisition in there. as a standalone would probably be worth a pretty penny.

the stock market side of the business - well - we all know how thats going. needs more listings asap. and in the long term, the success of the smartshares probably a little bit dependent on the health of the local listed markets. although they continue to make strides in offshore ETFs, the rise of investment platforms allowing investors to bypass smartshare ETF and access offshore ETFs directly could be a medium/long-term headwind.

disc. not a holder.

[Rawz]

I know of a private business (wholesale food supplier) that are doing $150m+ in revenue and the owners are looking to retire. I asked if they were considering a listing and they laughed and said prefer a larger international operator to buy them.

Bit sad that

[Sideshow Bob]

https://www.nzx.com/announcements/426706

NZX demonstrates strength & resilience in challenging time for global markets
• Group operating earnings1 of $40.1 million (excluding acquisition and integration costs), up 9.6% yearon year
• Net profit after tax (NPAT) of $13.6 million, down 4.3%
• Final dividend of 3.1 cents per share, fully imputed. FY2023 dividend total 6.1 cents per share, fullyimputed
• FY2024 operating earnings guidance range is $40 million to $44.5 million

[bull....]

you can tell nzx lost the plot there statement of results talks up all about smartshares and blames the exchange declining fortunes on economic uncertainty and economic cycles lol , blindly forgetting many other countries have the same uncertainty and cycle but there exchanges are hitting all time highs. maybe they should take there blinkers off

[Wai Wai]

NZX today announced operating earnings (EBITDA) of $40.1 million (excluding acquisition and integration costs) for the financial year ended 31 December 2023 – up 9.6%. Including acquisition and integration costs, Group operating earnings (EBITDA) for the same period were $38.9 million – up 10.9%

Can someone explain this to this old dog?

[Ricky-bobby]

A bit of movement on this one over the last few weeks.. has gained at least 15 cents..

[Sideshow Bob]

https://businessdesk.co.nz/article/markets/nzx-in-for-a-tongue-lashing-at-agm?utm_source=7am+Headlines+from+BusinessDesk&utm_campaign=fac69bc743-7am+Headlines&utm_medium=email&utm_term=0_617c2ef34a-fac69bc743-402467359

Paywalled.

Directors looking for a mere 38% increase in their Remuneration pool.....

[Jaa]

Interesting to see Sharesies are buying Orchestra. Who needs the NZX?


Roberts said Orchestra's services were used by more than 500 private company clients and 60,000 shareholders, and counted Sharesies as one of its clients.

...

"We already support more than 30 listed companies and 10,000 staff with their staff share schemes and shareholder communications."

https://www.rnz.co.nz/news/business/514098/sharesies-acquires-equity-management-service-orchestra