ASX’s August Volumes Impacted By Diving Volatility in Global Markets

The metrics were reflective of a declining volatility which permeated the broader global marketplace.

The Australian Securities Exchange (ASX) has just released its monthly activity report for August 2016, which was again characterized by mostly uneven figures – the metrics were reflective of a declining volatility which permeated the broader global marketplace, according to an ASX statement.

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For the month ending August 2016, the value of ASX-listed stocks, as measured by the global All Ordinaries Index, changed marginally to 0.4%, down from 0.5% in July 2016 – the figure also corresponded to a declining expected future volatility reading of 13.2 in August 2016, down from 16.3 in July 2016, suggesting a very tranquil month by way of volatility.

In addition, the ASX’s stock value in August fell -2.0% and was outperformed relative to many other regional exchanges and market blocs, especially when weighed against leaders such as Germany (2.5%), Japan (1.9%), Hong Kong (5.0%), the United States (-0.1%) and Singapore, which fell-1.7% during August 2016.

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Metrics Breakdown

Moving to market specifics in August 2016, the ASX also managed to raise $6.2 billion in total capital during the month, which was lower by -27.9% MoM from $8.6 billion in July 2016. However, across its initial capital raise, the exchange also managed to raise $2.51 billion during the month of August 2016 – this did reflect a growth of 76.8% MoM from $1.42 billion in July 2016.

By extension, the total value of cash markets for the ASX during August 2016 was $109.5 billion, down -5.1% YoY from $115.4 billion in August 2015 – in addition to this negative result, the ASX also reported a decline in its average daily value on-market, yielding a figure of $4.1 billion in August 2016, down approximately -14.5% YoY from $4.8 billion in August 2015.

Furthermore, the ASX also disclosed its futures trading statistics during August 2016, yielding a total of 7.7 million futures contracts traded during the month, falling -9.4% MoM from 8.5 million contracts in July 2016. Average daily contracts were however trending higher at 332,967 in July 2016, vs. just 406,090 contracts in July 2015, or -18.0% lower MoM.

Finally, the notional value of over-the-counter (OTC) interest rate derivative contracts centrally cleared during August 2016 was $299.6 billion, against $298.1 billion back in July 2016 – this justified a marginal change of less than 1.0% MoM, though the figure was up a steadfast 149.0% YoY from $120.9 billion in August 2015.

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