ASX’s July Metrics Bogged Down By Lower Capital, Cash Markets

The ASX's latest statistics were mostly lower YoY with July seeing notable declines in futures and cash markets.

The Australian Securities Exchange (ASX) has just released its monthly activity report for July 2016, which was characterized by largely uneven figures, most notably including a sizable decrease in raised capital, according to an ASX statement.

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For the month ending March 2016, the value of ASX-listed stocks, as measured by the global All Ordinaries Index, managed to rise by 6.3% MoM – the performance, while positive, compared favorably to many other regional exchanges and market blocs, especially when weighed against leaders such as Germany (6.8%), Japan (6.4%), Hong Kong (5.3%), and the United States (3.6%) – the lone exception was Singapore, which only saw gains of 1.0% during July 2016.

In conjunction with this rising value in listings, the ASX also incurred a sizable drop in volatility during July 2016, with its latest measure, as calculated by the All Ordinaries Index, falling to 0.5% for the month, down from 0.8% in June 2016. This can be explained by the influx of volatility due to the Brexit referendum back in June, which gripped equity and currency markets. Since then, markets have lacked any sizable catalyst, explaining the declines of volatility.

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Metrics Breakdown

Looking to market specifics in July 2016, the ASX also managed to raise $8.6 billion in total capital during the month, which was lower by -6.0% YoY from July 2015. Across its initial capital raise, the exchange also managed to raise $1.42 billion during the month of July 2016 – this also corresponded to a decline of -48.9% YoY from $2.78 billion in July 2015.

By extension, the total value of cash markets for the ASX during July 2016 was $58.3 billion, down -7.2% YoY from $62.8 billion in July 2015 – however, despite this negative result, the ASX did see a growth in its average daily value on-market, yielding a figure of $3.9 billion in July 2016, up approximately 7.0% YoY from $3.7 billion in July 2015.

Furthermore, the ASX also reported its futures trading statistics during July 2016, yielding a total of 8.5 million futures contracts traded during the month, falling -8.6% YoY from 9.3 million contracts in July 2015. Average daily contracts were however trending higher at 406,090 in July 2016, vs. just 404,251 contracts in July 2015, or less than 1.0% higher YoY.

Finally, the notional value of over-the-counter (OTC) interest rate derivative contracts centrally cleared during July 2016 was $298.1 billion, against just $136.6 billion back in July 2015 – this correlated to an ascension of 118.2% YoY.

The ASX made headlines this week after it appointed Dominic Stevens as its Managing Director and newest CEO. The move followed the departure of the ASX’s former Managing Director and CEO, Elmer Funke Kupper, in March, who had been with the company since 2011.

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