sharesies.nz

[peat]

NZX advise that volume has increased four times since a while back.
Their website says they did $38.8 billion last year. which is only 100 mill per day
They say in a video that they did 1.3 billion last week.
I see Sharesies announced they did a record 80 million in a week.
If Sharesies are creating significan transactional volume increases , on only 80M a turnover week then they should be pushed to the side of the road. That is less than 20% value on a normal week. But it will only be 5% of the increased volume so they are a piddle in the bucket and yet are stuffing up the system.

BBMP
Bring Back Minimum Parcel sizes (honestly its not that much)

[BIRMANBOY]

Long term view would seem to be that all of the new investors can only help the NZ share market. Advantages would be obvious...makes for more liquidity across the board as well as allowing access to another form of investment rather than just Term Deposits, kiwi saver and lotto tickets. Also many of the new entrants will continue on and become bigger investors as time goes by. More investors help drive up prices which benefits existing holders. Short term problems obviously for the NZX adjusting technology to cope with new growth but one assumes that will be overcome sooner rather than later. I think its great that there is another generation of investors created here. When you think about an investor just using a couple of hundred dollars it may seem a bit futile to a seasoned investor, but when you view it as a cumulative exercise and also consider the number of investors, it looks completely different. Go Sharesies.

[justakiwi]

Wow. So much bitterness. You’re the 2 year old who doesn’t want to share the playground.

If Sharesies are creating significant transactional volume increases , on only 80M a turnover week then they should be pushed to the side of the road. That is less than 20% value on a normal week. But it will only be 5% of the increased volume so they are a piddle in the bucket and yet are stuffing up the system.

BBMP
Bring Back Minimum Parcel sizes (honestly its not that much)

[peat]

Wow. So much bitterness. You’re the 2 year old who doesn’t want to share the playground.

No I'm not bitter but its finance not tiddlywinks.

I have followed your posts and fully applaud your investing and the strategy and totally agree that diversification is important for any portfolio
but even you aren't buying 3 shares or 27 shares you're buying small parcels that cost $500 minimum and that's totally cool.
I bought my first bond from Northern Territory Australia for $A500 - that was the minimum size and still wasn't worthwhile when I took exchange costs into account.

There must have been a reason for a minimum parcel and now we know what it was.

[blackcap]

No I'm not bitter but its finance not tiddlywinks.

I have followed your posts and fully applaud your investing and the strategy and totally agree that diversification is important for any portfolio
but even you aren't buying 3 shares or 27 shares you're buying small parcels that cost $500 minimum and that's totally cool.
I bought my first bond from Northern Territory Australia for $A500 - that was the minimum size and still wasn't worthwhile when I took exchange costs into account.

There must have been a reason for a minimum parcel and now we know what it was.

I tend to disagree with you on this one Peat. Technology has allowed the minimum parcel sizes to be redundant. I too used to know the term "odd lot".
Unfortunately it is the NZX that is not up to the party here trying to run a modern system on old hard/software. The NZX have made Sharesies a market participant. More fool them if they did not see the enthusiasm that the ordinary folk had for investing in shares and being able to make their own balanced portfolios with minimal $.
I am in the process of making my own index fund, which I will manage and invest in on my own behalf. Now with Sharesies it is possible to do something like that even with a portfolio value of even say $25k. In the past it would have been prohibitive.

[justakiwi]

Mmmm .... I have no idea why you think that, but no I am not.

Prior to covoid I was investing $40 a week, split between 4 holdings. One of which is USF. So every week I was buying 1 point something of a USF share, and varying small amounts of my other holdings. Lately, I have not been making regular weekly orders but buying here and there as funds permit, if I think there is some value in buying. Yesterday I bought 30 something shares.

Which, as far as I am concerned, is also “totally cool.”

but even you aren't buying 3 shares or 27 shares you're buying small parcels that cost $500 minimum and that's totally cool.

[SBQ]

I tend to disagree with you on this one Peat. Technology has allowed the minimum parcel sizes to be redundant. I too used to know the term "odd lot".
Unfortunately it is the NZX that is not up to the party here trying to run a modern system on old hard/software. The NZX have made Sharesies a market participant. More fool them if they did not see the enthusiasm that the ordinary folk had for investing in shares and being able to make their own balanced portfolios with minimal $.
I am in the process of making my own index fund, which I will manage and invest in on my own behalf. Now with Sharesies it is possible to do something like that even with a portfolio value of even say $25k. In the past it would have been prohibitive.

How are you accomplishing this in a NZ market presence by sector / industry? The NZ50 alone is too risky with so many in that list that will be destined for bankruptcy. Will you be tracking every stock in that sector and do all the rebalancing? How about the high commissions for making trades ; which will reflect in your annual cost? If lowering risk through diversification is your strategy, i'm afraid you won't do it in the NZ market.

[SBQ]

Mmmm .... I have no idea why you think that, but no I am not.

Prior to covoid I was investing $40 a week, split between 4 holdings. One of which is USF. So every week I was buying 1 point something of a USF share, and varying small amounts of my other holdings. Lately, I have not been making regular weekly orders but buying here and there as funds permit, if I think there is some value in buying. Yesterday I bought 30 something shares.

Which, as far as I am concerned, is also “totally cool.”

We have crossed paths many times justakiwi over the past couple of years on this forum. If you recall, I made a response that it was more likely a stock market crash were to occur and it's not so strategic to put all your $ in a timely way of investing (ie in weekly contributions like Kiwi Saver). I mentioned to the person wanting to start investing, I replied that there would be a high probability of a stock market crash in the near short or long term future because we've come a long way since 2008. Now here we are justakiwi witnessing this major global crisis. WTI crude oil has crashed to negative territory (never in history has this happened).

What does this mean from now on? Well, to those starting to invest, i'm afraid they would be in a better position than those that have stayed invested for the past 2 or 3 years. This is the reason for the increase interest in investing as we've see by the Sharesies data.

[blackcap]

How are you accomplishing this in a NZ market presence by sector / industry? The NZ50 alone is too risky with so many in that list that will be destined for bankruptcy. Will you be tracking every stock in that sector and do all the rebalancing? How about the high commissions for making trades ; which will reflect in your annual cost? If lowering risk through diversification is your strategy, i'm afraid you won't do it in the NZ market.

I will be using the NZ50 as a proxy. In my younger years I used to administer a passive NZ fund. Its not that difficult to do in Excel. I will have parameters so that rebalancing only has to be done weekly (or monthly) and there will be some leeway in the requirements to avoid unnecessary transactions. Brokerage on Sharesies is so low that this is immaterial. Other passive funds also have brokerage to contend with yet its not a problem for them. As with passive funds, I will not be trying to pick winners or losers. Just invest within the parameter and get the index return (including the management fee which I will pocket myself) Ie not have to pay Smartshares their 0.54% per annum or whatever it is these days.

[peat]

I tend to disagree with you on this one Peat. Technology has allowed the minimum parcel sizes to be redundant. I too used to know the term "odd lot".

Unfortunately it is the NZX that is not up to the party here trying to run a modern system on old hard/software. The NZX have made Sharesies a market participant.

If technology had made it the concept of minimum parcels redundant then its quite likely we wouldn't be having these problems would we?

Although I do agree that NZX have miscalculated regarding the impact Sharesies has had so ultimately it is their fault and not Sharesies. Exchanges should be able to cope with much larger volumes than their daily averages
But I still think its worthwhile some cantankerous old rissole like me pointing out where the problem (probably) arises from.

And I've also pointed out - sometime before the Corona crash - that all these tiny investors signalled the end of the bull market. Oddly they are staying around tho so clearly we have a lot further to fall.