NZX - NZ Exchange

[traineeinvestor]

While NZR has paid a good dividend for many years, I have to question the longer term sustainability in the face of four current and potential headwinds:

1. the ever present threat of a competing platform for trading shares (like Chi-X in Australia) taking a chunk of their market. Possibly the small size of the NZ market is the only reason this hasn't happened yet
2. declining pool of listed companies - defections to ASX and delistings seem to be exceeding new listings
3. rise of the low cost passive fund - if/when these take up a bigger slice of the investment market, I would expect it to adversely affect trading volumes
4. capital gains tax - investors will be less inclined to sell and get hit with additional tax (even more so when National has pledged to repeal any capital gains tax which comes in)

I just don't see how NZX can grow meaningfully.

[peat]

I dont think you'll find many here disagree, Traineeinvestor.

[peat]

... and it certainly isnt lack of confidence in the Securities laws (he said sarcastically)

cleanliness of markets.JPG
it would appear our markets are at least as clean as Australia's!



Such a great yardstick.



Thanks for the link

[bull....]

big reason to believe there wont be a stock exchange if CGT goes ahead

the apparent exclusion of Portfolio Investment Entities (PIEs);

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12195525

why would you invest in the share market as an individual and pay up to 33% tax when you could invest in a pie for free?

no normal person would so 20 - 30% of trading participants disappear nzx revenue declines markely and becomes a going concern as kiwisavers etc are passive holders.

https://www.nzherald.co.nz/business/...ectid=12195525

[silverblizzard888]

The solution and problem are all in one word: COST!

You make it cheaper to buy and sell shares, you will have more liquidity and more efficient markets. NZ has one of the least efficient markets I have seen, but I'm not complaining since it gives me plenty of time to find opportunities, but then when I do I just have to wait ages to have it recognized. Time is money and also risk of change in economic situation and missing out on other opportunities.

You make it cheaper for companies to list and comply with disclosures. Why go public when you can raise funds from venture capital and have less cost and compliance?


NZX itself must run a more lean set up. How does the NZX have more executives than the ASX? Yet many times small?

How is it a $5million company can list in the ASX, but the NZX board is reluctant to let this happen?

[Balance]

The solution and problem are all in one word: COST!

You make it cheaper to buy and sell shares, you will have more liquidity and more efficient markets. NZ has one of the least efficient markets I have seen, but I'm not complaining since it gives me plenty of time to find opportunities, but then when I do I just have to wait ages to have it recognized. Time is money and also risk of change in economic situation and missing out on other opportunities.

You make it cheaper for companies to list and comply with disclosures. Why go public when you can raise funds from venture capital and have less cost and compliance?


NZX itself must run a more lean set up. How does the NZX have more executives than the ASX? Yet many times small?

How is it a $5million company can list in the ASX, but the NZX board is reluctant to let this happen?

The state of the NZX is best described in one word - "Backdoors".

Backdoor listings (with a couple of exceptions) have been huge disasters - from a financial, wealth destructive and perception point of view.

After the shameful sham and total farce which was Plus SMS, NZX undertook to review backdoor listings - expectations were that they would be banned outright or tightened up considerably.

Instead, NZX tried to copy the backdoor listing model by introducing NXT market!

Next, we have the NZX paying its CEOs based upon unfathomable reward contracts so that even when they do not perform, they get rewarded generously - Weldon, Bennett and now, whatever his name is.

Cry, the beloved country NZ - there is only one way to go and it's down, down for our capital markets.

[Lewylewylewy]

Sad to see companies in a monopolistic position not able to do as well as they should. The nzx should be doing amazing things for nz from angel investing to growing existing large companies. Other horror of exchanges. Loan and bond facilities to companies and private market, and an array of associated services. They are in a position to present a massive and diverse range of products, but instead they do what monopolies do best: nothing, and everything inefficiently at the cost of their customers. Dumb.

[Balance]

Sad to see companies in a monopolistic position not able to do as well as they should. The nzx should be doing amazing things for nz from angel investing to growing existing large companies. Other horror of exchanges. Loan and bond facilities to companies and private market, and an array of associated services. They are in a position to present a massive and diverse range of products, but instead they do what monopolies do best: nothing, and everything inefficiently at the cost of their customers. Dumb.

Weldon and the board of misfit directors milked the monopoly for everything that the NZX could extract, with little consideration for the future of NZ.

Now NZ Inc pays the price.

Dumb is what John Key and his government did.

Dumb is what the likes of Milford & Brian Gaynor did - praising and supporting Weldon in his single minded pursuit of milking NZX dry.

Dumb is what Weldon did next - exposing himself for the incompetent buffoon manager he is by taking on MediaWorks and showing to the world what a misfit he is.

[peat]

Weldon and the board of misfit directors milked the monopoly for everything that the NZX could extract, with little consideration for the future of NZ.

Now NZ Inc pays the price.

Dumb is what John Key and his government did.

Dumb is what the likes of Milford & Brian Gaynor did - praising and supporting Weldon in his single minded pursuit of milking NZX dry.

Dumb is what Weldon did next - exposing himself for the incompetent buffoon manager he is by taking on MediaWorks and showing to the world what a misfit he is.

Balance!
Time to send all these records to the shredder, its seven years since Weldon ran the NZX even the IRD doesnt expect you to hold the data any longer.

[Balance]

Balance!
Time to send all these records to the shredder, its seven years since Weldon ran the NZX even the IRD doesnt expect you to hold the data any longer.

Would agree with you but for the fact that the NZX itself has done NOTHING substantial to reverse the diabolical decisions and directions put in place under Welson & the misfit directors.

Until the NZX does, constant reminder required.

Fonterra is yet another great NZ example of what happens when monopolies are allowed to be run for the greater benefit of the executives. At least the government took note, changed the monopolistic settings and we have the likes of ATM & Synlait showing just how ineffectual Fonterra has been as a forward thinking MONOPOLY.

In the case of the NZX, John Key's government actually entrenched the monopoly settings! Folly upon folly.