ASX’s October Volumes Dwindle as Cash Markets Retreat

Cash markets trading was down MoM, as well as several other metrics in October at the ASX.

The Australian Securities Exchange (ASX) has just released its monthly activity report for October 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 October 2016, the value of ASX-listed stocks, as measured by the global All Ordinaries Index, fell -2.2% MoM from September 2016 – the figure also corresponded to a declining expected future volatility reading of 14.1 in October 2016, down from 14.4 in September 2016, suggesting a less volatile month of trading.

Furthermore, the ASX’s stock value in October fell -2.2% and was outperformed relative to many other regional exchanges and market blocs, especially when weighed against leaders such as Germany (1.5%), Japan (5.9%), UK (0.8%), the United States (-1.9%) and Hong Hong, which fell -1.6% during October 2016.

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Metrics Breakdown

Moving to market specifics in October 2016, the ASX also managed to raise $6.5 billion in total capital during the month, which was higher by -91.2% MoM from $3.4 billion in September 2016. However, across its initial capital raise, the exchange also managed to raise $2.2 billion during the month of October 2016, reflecting a strong MoM growth.

By extension, the total value of cash markets for the ASX during October 2016 was $93.2 billion, down -14.4% YoY from $108.9 billion in September 2015 – in addition to this negative result, the ASX also reported a decline in its average daily value on-market, yielding a figure of $3.8 billion in October 2016, down approximately -10.6% MoM from $4.3 billion in September 2016.

The ASX also disclosed its futures trading statistics during October 2016, yielding a total of 11.1 million futures contracts traded during the month, falling -28.8% MoM from 15.6 million contracts in September 2016. Average daily contracts were however trending lower at 528,137 in October 2016, vs. just 707,024 contracts in September 2015, or -25.3% lower MoM.

Finally, the notional value of over-the-counter (OTC) interest rate derivative contracts centrally cleared during October 2016 was $323.9 billion, against $299.6 billion back in September 2016 – this justified a healthy growth of 8.0% MoM.

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