ASX’s January Volumes Pointed Lower, Futures Trading Leads Decline

The ASX's latest activity report showed dramatic reductions in futures and cash markets trading in January.

The Australian Securities Exchange (ASX) has released its monthly activity report for January 2017, ultimately showing a downtrodden performance across the board despite an uptick in volatility for the month, per an ASX filing.

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Per the latest monthly report, the value of ASX-listed stocks, as measured by the global All Ordinaries Index, fell 0.8 percent month-over-month from December 2016 – this reading also corresponded to a growing expected future volatility reading of 13.1 in January 2017, compared to just 11.9 in December 2016.

The uptick in volatility was due in part to the impending administration of Donald Trump as well as a return to more normalized market activity following a seasonal slowdown in December.

In addition, the ASX’s stock value during January 2017 was exceeded by most other regional exchanges and market blocs, especially when weighed against leaders such as Germany (0.5%), Hong Kong (6.2%), the United States (0.8%), and Singapore (5.8%).

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Metrics Breakdown

In terms of market specifics in January 2017, the ASX managed to raise only $853.0 million in total capital during the month, substantially lower than $6.5 billion in December 2016, or lower by -86.9 percent month-over-month.

Compared to its 2016 counterpart however, the ASX did mark an increase in its raised capital, growing 159.3 percent year-over-year from $329.0 million in January 2016.

The total value of cash markets for the ASX during January 2017 was $84.2 billion, down -11.8 percent month-over-month from $95.5 billion in December 2016. In addition to this declining figure, the ASX also reported a negative performance in its average daily value on-market, yielding a figure of $3.6 billion in January 2017, down -14.3 percent month-over-month from $4.2 billion in December 2016.

The ASX also released its futures trading statistics during January 2017, showing a total of 7.8 million futures contracts traded during the month, or -43.5 percent lower month-over-month from 13.8 million contracts in December 2016.

Average daily contracts were also trending lower at 373,264 in January 2017, vs. just 692,038 contracts in December 2016, down -46.1 percent month-over-month.

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