New Zealand Stock Exchange and a glimpse at the best shares

Summary

  • NZX is the stock market of New Zealand.
  • It provides a number of investment products and tools.
  • The best shares to buy are a mix of large, medium and small caps.

New Zealand has a robust economy and like many other countries, has a well-developed stock market, called the New Zealand Stock exchange (NZX). This is the marketplace for investors to buy and sell the exchange’s listed equities and funds. It originated in as early as 1870s during the gold rush and ever since, it has become a company that is owned and controlled by the shareholders. 

At first, it was the first Brokers Association in Dunedin in 1867, then Otago and other regional centres. All the regional exchanges were combined to form one national stock exchange in 1983. Amongst other landmarks achieved by the NZX were the abolition of the open outcry system and starting of the computerised trading system in 1991.

The computerised trading system was replaced with the Faster trading system in 1999. It became a limited liability company, controlled and run by the shareholders in 2002, and its name was formally changed from NZSE To NZX. Today, it is headquartered in NZX Centre in Wellington, and is headed by CEO, Mark Peterson, and Chairman, James Miller.

Instruments and products provided on the NZX

It provides access to a variety of investment products and tools such as Exchange Traded Funds, Investment and insurance products, wealth management and dairy research products. NZX also regularly keeps updating its shareholders with the news and announcements about various companies and stocks’ movements. The information is announced first on the NZX by the companies and that influences the stock movement.

What is the number of securities on the NZX?

NZX has more than 185 securities listed with a market value of NZ$184.87B. The Companies listed are all in large-, mid- and small-cap segments.  

Which is the main index of NZX?

The NZX 50 is the benchmark index of New Zealand, representing 50 heavyweights of the Kiwi corporate world. These companies are also the most liquid companies. The day’s trade on the NZX 50 reflects on the main page of the NZX website. 

Investing in the NZX companies is not difficult. To start the process, visit market participants, -a list of companies listed on the NZX. Also, decide on whether you want to make a short- or long-term investment according to your capacity, and then start investing either through some trading platform, brokers or financial advisors.

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Some 0f  the big companies listed on the NZX50 are — Westpac Banking Corporation  (NZX:WBC), Australia and New Zealand Banking Group (NZX:ANZ), and Auckland International Airport (NZX:AIA), etc.  Some of the top utilities stocks like Meridian Energy (NZX:MEL), healthcare companies like Fisher and Paykel (NZX:FPH), and from the telecom sector, Spark Telecom NZ Limited (NZX:SPK), etc.

Best shares to keep an eye on

The best shares on the NZX are also some of the top companies on the NZX 50. These include -

Fisher and Paykel Limited (NZX:FPH): It is a healthcare company, which has reported a record growth in FY2021. The Company’s full-year result in May reported an uptick by 82% in its profits at NZ$524M. Its operating revenue was NZ$1 B, up 56% or 61% in a constant currency, and its NPAT was up by 82% at NZ$524M over pcp. FPH has been growing over the years but FY21 was extraordinary for its growth, driven by hospital products, which include respiratory equipment, used to deliver nasal high- flow therapy. The Company rewarded the shareholders with a dividend bonanza of 22.0cps, which is an increase of 42% over the last year’s dividend.

A2 Milk Company (NZX:ATM) is a milk product company, aligned to the dairy products market for which NZ is well known. It is a dual-listed company. Main offering from the company is in the form of the naturally produced a2 Milk®. The company has milk and infant formula as a part of its product categories. It is spread across geographies in countries like New Zealand, Australia, the USA, China, and the UK.

Ryman Healthcare Limited (NZX:RYM): it’s is an aged homecare facility operating 36 villages, which are home to 11,600 residents throughout Australia and NZ. It is a leading company that is listed on the NZX. Due to investment property revaluations, its profit saw a significant jump of 59.8%, amounting to NZ$423.1M in FY21. On 18 June, it distributed a final dividend of 13.6cps to its shareholders.

Sky Network Television Limited (NZX:SKT): Even though it is a penny stock, SKT is high growth. The Company is the most popular television networks in the country. It has been innovating and customising content for its customers. Recently, the Company signed a deal with NBC Universal Network. According to this deal, SKT customers will get more content on demand and on several platforms. The new tie-up will also bring content in many new generes like news, comedy, and drama.

Seeka Limited (NZX:SEK) is a fruit producing company, which is high growth with a market cap of 158M. The Company has been rewarding its shareholders with attractive dividend payouts. It declared a dividend of 22.000 cps for the whole year and a final dividend of 12.000 cps.

New Zealand has a robust economy and like many other countries, has a well-developed stock market, called the New Zealand Stock exchange (NZX). This is the marketplace for investors to buy and sell the exchange’s listed equities and funds. It originated in as early as 1870s during the gold rush and ever since, it has become a company that is owned and controlled by the shareholders. 

At first, it was the first Brokers Association in Dunedin in 1867, then Otago and other regional centres. All the regional exchanges were combined to form one national stock exchange in 1983. Amongst other landmarks achieved by the NZX were the abolition of the open outcry system and starting of the computerised trading system in 1991.

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