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Market Update - July to October 2006

The Australian domestic equity market capitalisation exceeded $1 trillion for the first time last year and is now over $1.2 trillion.

The S&P/ASX 200 Accumulation Index increased 7.6% in the first four months of the 2006/07 financial year. This index returned 25.7% over the period 1 November 2005 to 31 October 2006. The performance returns of the various sector indices over this same 12 month period all ended in positive territory except for the Telecommunication sector which fell 9.8%. The two best performing sectors were Materials and Utilities which gained 29.1% and 21.9%, respectively. Utilities were closely followed by the Financials sector which returned 21.0%. The performance of the new Metals and Mining index shows where the bulk of the Materials index performance came from (see the article on the resources sector). This underlines the importance of relevant sector indices in Australia that match the Australian market.

ASX has continued to see a steady flow of IPOs with 185 new listings so far in the 2006 calendar year and 72 in the first four months of the 2006/07 financial year alone. The Resources sector has accounted for 56% of these listings, followed by Financials which accounted for 15%.

IPOs in 2006* by Industry

Pie chart showing IPOs in 2006 by Industry

*Up to and including 14 November 2006

IPO activity for the reminder of 2006 is expected to remain strong with 45 companies or trusts in the pipeline. A full list of upcoming floats can be found on the ASX website.

Australian Market Performance statistics over the first four months of the 2006/07 financial year include:

Australian Market Performance - July to October 2006

S&P/ASX 200 at 31 October 2006 

% change 12 months to 31 October 2006 

Entities* listed on ASX at 31 October 2006 

New entities* listed during July and October 2006 

5391.8

20.33%

1967

72

* Includes companies and trusts with quoted equities and listed entities with debt securities only or no quoted securities.
These are treated as separate entities.

All rights reserved 2006.
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