The Australian Securities Exchange (ASX) is a vital player in the Australian financial landscape, overseeing not just the share market but also fixed-income securities and commodities trading. Established in its current form from the merger of the Australian Stock Exchange and the Sydney Futures Exchange in 2006, the ASX boasts a rich history dating back to the incorporation of the Australian Stock Exchange in 1987. Based in Sydney, the ASX is a key component of the global financial market, often compared to major exchanges like the London Stock Exchange and the New York Stock Exchange.
Every weekday, the ASX share market springs to life at 10 am AEST, embarking on a day that includes various trading phases beyond the standard trading session. These phases include the pre-open period, normal trading hours, and post-market activities like single price auctions and maintenance tasks. The ASX share market does take breaks, however, observing closures on specific public holidays such as New Year’s Day, Easter Monday, and Christmas Day.
State by state, the ASX opening hours vary slightly to accommodate local time zones. In New South Wales and Victoria, trading runs from 10 am to 4 pm, while other states like South Australia and Queensland have adjusted hours during daylight savings. To participate in the ASX market action, investors must engage a licensed stockbroker to execute trades on their behalf. These brokers charge fees known as brokerage for their services, with online and mobile platforms increasingly popular due to lower costs.
Currently, the ASX hosts a diverse array of companies, with over 2,252 entities listed as of December 2024, including a significant number of foreign firms. The fluctuating number of listed companies serves as a barometer for the national economy’s health, with the count surpassing 2,000 during the initial phase of the COVID-19 pandemic but steadily rising since mid-2021. The ASX generates revenue through a suite of services for market participants, from facilitating new listings to trade settlement, culminating in a record operating revenue of $1.03 billion in FY24.
While the ASX has historically been a reliable investment, its performance has faced turbulence in recent years due to various global and economic challenges. The ASX share price reflects the market’s sensitivity to events like the COVID-19 pandemic, geopolitical tensions, and economic uncertainties. As the ASX thrives in robust economic conditions with active company growth and IPOs, potential investors should consider the market’s historical performance and resilience in navigating volatile market conditions.
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