Home > Market performance for 2009
This article appeared in the December 2009 Listed @ ASX newsletter.
Market performance for 2009
The performance of the benchmark was better than that of other major international markets as shown in the table comparing index performance below. Total market capitalisation of ASX listed companies rose by 36% to $1.45 trillion, compared to $1.07 trillion in December 2008. Trading activity has risen to new highs during 2009, with 500,000 trades being matched on ASX’s trading system, ITS® on a typical day.
|Equity Markets Summary|
|Capitalisation 31/12/08 ($b)||1,072|
|Capital raising incl. IPOs ($b)||96|
|Market Movement ($b)||332|
|Capitalisation 30/11/09 ($b)||1,450|
|Index Name||CY 09 price performance|
Equity capital markets
In the 2009 calendar year to date, Australian companies raised a record $96 billion in initial and subsequent equity issues. Despite representing only 2-3% of global equity market value, Australia has the third most active capital market in the world by value of equity issuance. Equity capital market activity in the first half of the year was directed at recapitalising balance sheets and was largely confined to the large cap sector. In the second half of 2009, capital raising activity became more broadly spread to include the small to mid cap segment and became increasingly directed towards funding new projects and growth opportunities.
After a period of subdued activity the IPO market re-opened in September 2009 with the successful listing of carsales.com. Carsales.com was the first major float since July 2008. In the second half of the year there have been 23 new company listings with a further 20 expected to list in December. There is also a strong pipeline of companies preparing to list in 2010 including private equity re-listings, divestments and numerous mineral exploration companies.
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