Aussie stocks cap 2011 under persistent volatility

AUSTRALIAN stocks closed out the 2011 calendar year with a continuation of November’s lacklustre performance, according to the latest numbers from the Australian Securities Exchange.

The value of stocks listed on the ASX, as measured by the All Ordinaries index, fell 1.8% in December, recalling a 4.9% drop the previous month. Jitters largely stemming from uncertainty around foreign debt have been cited as the driving factor for the struggling market.

In December, ASX-listed stocks followed the markets in Germany (-3.1%) and Singapore (-2.1%) with above average volatility levels and a sagging bottom line but most other major players posted positive numbers on the month. Hong Kong (+2.5%), the UK (+1.2%), the US (+0.9%) and Japan (+0.2%) all marked gains despite the surges and pullbacks that have typified the current global economic climate.

Higher than average volatility has been persistent in the Australian equity market, with average daily trading in December measured at 1.1% compared to 1% in November. The group also reported a decline in the value of a daily cash market trading over December, with an average traded value of $3.9 billion a day compared to $4.4 billion a day the previous year.

Capital raisings

• Total capital raised in December 2011 amounted to $9 billion, down 45% on the $16.4 billion raised in the previous corresponding period.
• Total capital raised in 2011 was $48.6 billion, down 14% on the $56.5 billion in 2010.
• There was $3.7 billion of initial capital raised in December 2011 (including $2.3 billion for Centro Retail Australia), compared to $10.6 billion in the pcp, (including $8.4 billion for Westfield Retail Trust).
• Total secondary capital raised in 2011 was $33.1 billion, up 5% on the $31.4 billion in 2010.

 

Listings and capital raisings	Dec 2011 Month	Dec 2010 Month	Dec 2011 Financial YTD	Dec 2010 Financial YTD
New listed entities admitted	12	35	57	84
Change on pcp	-66%		-32%
Total listed entities (at end of month)	2222	2216
Initial capital raised ($million)	3694	10,587	6729	20,613
Secondary capital raised ($million)	5335	5790	17,725	18,369
Total capital raised ($million)	9029	16,377	24,454	38,982
Change on pcp	-45%		-37%
Other capital raised including scrip-for-scrip ($million)	363	2165	4011	13,685

Markets for cash and derivatives

Movement in cash markets has clearly illustrated the current climate of volatility. Cash market trades were up 7% in December, rounding out at 11.7 million. Average daily trades were 12% higher than December last year. Cash trades for the year were 18% higher than in 2010.

The number of daily cash trades increased 19% for 2011 and the total value of these trades declined 4% compared to the previous year. The ASX reports the total value of cash trades in December slipped 16%.

On the ASX market, the total volume of equity derivatives increased 17% in December, with daily contracts up 23% compared to November. Total futures and options on futures contracts volume (excluding equity derivatives and contracts for difference) for 2011 was up 21% from 2010, to $104.5 million.