Australia Stock Exchange

 

 

 

 

 

 

Australia Stock Exchange

 

 

Stock Exchange in Australia

 

Australia Stock Exchange was the former name of the Australian Securities Exchange, the major stock exchange in the country.

 

ASE is noted for its history of several mergers.

 

The Sydney-based bourse operator was established in 1987 after six independent securities exchanges decided to combine and comprise a single stock exchange.

 

Originally, the ASE started as a state-based exchange in 1861.

 

In December 2006, ASE again underwent a major change.

 

 

This time, it united with commodities trading center Sydney Futures Exchange to for what is more popularly known today as ASX, the Australian Securities Exchange.

 
Australia Stock Exchange

ASX is trading as a publicly listed company, included in the exchange itself. It is now running as an all-electronic powerhouse and exchange, one of the benchmarks across the Asia-Pacific region.

 

Being the biggest bourse operator in the country, it is not surprising that the largest traded stocks are included in ASX.

 

Some major companies listed in the exchange include local resource miners BHP Billiton and Rio Tinto; national lenders National Australia Bank, ANZ Banking Group and Commonwealth Bank of Australia; and telecommunications giant Telstra Corporation.

 

After the merger and the emergence of ASX, the exchange has been majorly comprised of huge sectors, namely, financial services, commodities and listed property trusts.

 

ASX’s major market index is called S&P/ ASX 200. The index is logically made of the biggest 200 stocks.

 

The list replaced the former All Ordinaries index, which up to now is running parallel to the index. ASX features other indexes like the S&P/ ASX 100 and the smaller S&P/ ASX 50.

As a publicly listed firm, ASX’s own shares are traded in its own exchange.

The company, however, is implementing restrictions, based on its charter, for maximum holdings allowed for individual investors.

One unique feature about ASX is that while it is acting as a securities regulator for all publicly listed stocks, it could not in any way regulate itself. Instead, ASX is under the regulations of national watchdog the Australian Securities and Investments Commission, a federal government body.

 

Like most exchanges around the world, ASX’s operation is not 24-7. Market trades during weekdays from 10:00 in the morning until 4:00 in the afternoon. It has a pre-market session that runs from 7:00 am until 10:00 am. The dominating brokers include Macquarie Bank, UBS, Goldman Sachs JBWere, Citigroup, Deutsche Bank, Merrill Lynch, ABN AMRO, Morgan Stanley and CommSec.

Overall market ownership is 30% institutional, 30% retail and 40% foreign. Currently, there are more than 2,000 stocks that are publicly traded at ASX. In the first quarter of 2007, overall market capitalization of ASX was at A$1.39 trillion, or about $1.098 trillion. In 2004, the exchange was significantly the 8th biggest in the global equity market.
 

 

 

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