AUSTRALIA’S stock exchange has plummeted to $1.3 billion in just three weeks after hitting $2 billion in July.
The Australian Securities Exchange (ASX) reported a loss of $1 billion for the year ending December 31, the biggest in more than a decade.
It’s down to more than $1 trillion in assets, down from $2 trillion a year ago, according to the Australian Bureau of Statistics.
“The ASX’s share price fell as much as 16 per cent in just over two months,” ASX chief executive Andrew Lough said in a statement on Monday.
He said the collapse in the stock market was “likely the biggest single event to hit the market in more the past decade”.
The ASEX had been down more than 7 per cent this year, before a series of volatile events including the Australian dollar’s decline and an investigation into the disappearance of an employee of the ASX.
On Monday, the ASY, which is not the ASEX but is an alternative to the ASex, reported a 3.3 per cent loss.
That was below the 4.4 per cent gain for the ASXX, the Australian stock market index, which also reported a 2.9 per cent decline on Monday, its biggest in a decade and its worst in three years.
While the ASx is expected to recover to its pre-crisis peak by mid-2018, it’s unlikely to be back to its 2007 peak of $2,400 per share.
Investors were left holding the bag after the collapse of the mining industry last year.
ASX chief Andrew Laugher said the crash has affected companies from mining to construction, and that the ASIC had to make hard choices about what it was investing in.
I have been very mindful of the fact that we’ve been at a critical point in terms of the Australian economy,” he said.
Mr Laughe said the ASEx was currently forecasting a return of around 6 per cent. “
That lack of understanding is likely to have played a role in the underlying performance of the market, rather than any specific event,” he told reporters.
Mr Laughe said the ASEx was currently forecasting a return of around 6 per cent.
There’s a lot of concern about the underlying fundamentals of the industry, which has been a very challenging environment for a lot from the perspective of investors, he said, before reiterating that the loss of a third of its assets was “a significant loss”.
Topics:investment,market-economics-and-finance,stocks,aus,asiaFirst posted December 29, 2019 14:57:03More stories from Victoria