Australia’s top stock market index, the ASX 200, has lost more than $100 billion since it started trading in July 2015, the biggest single loss of value in the past five years.
The ASX 100 and 200 are still in free fall.
Key points:The ASX 400 is down more than 20 per cent since July, while the ASY 200 is down almost 30 per cent The market is down by more than half since the start of the year.
“The Australian economy is at a critical juncture, the underlying fundamentals have collapsed and we are in a state of crisis,” ASX chief executive Matthew McBride said.
“In a market with so much uncertainty, there’s no excuse for a loss of 20 per of our market value.”
This is a real problem.”‘
I don’t feel safe’Market experts say it is the biggest loss of assets since 2008.”
We’re still a very risky market for many reasons,” Australian Securities and Investments Commission chief executive Brian Kelly said.
He said it was “very hard to be a market insider”.
The ASI, the Australian Securities Exchange, is the benchmark for the market.”
It’s really hard to get a sense of what’s happening to it,” Mr Kelly said, adding that he had not been to Australia for more than a month.”
I’ve been out for a year and I’ve been to the US for a month and a half.
“But I don’t know how I feel about being here.”
There’s no escape from it.
“The ASIC’s chief economist, Nick Di Giorgio, said there was no reason for the markets to be losing ground, despite a series of events, including the US Federal Reserve’s interest rate hike and the EU’s announcement to phase out the bloc’s common currency.”
For a while, there has been a real risk of a market correction,” he said.
In its annual report for March, the ISIC noted that the average price of shares in the ASI’s 50 stocks had risen by just over $6.70 since the beginning of the month.
The ASICS said that in January, the average daily trading volume in the index was $6,800, a 0.3 per cent increase from the previous month.
That has dropped to $4,600 in February and $3,700 in March.”
As the markets continue to recover from the shock of the Fed’s decision to cut interest rates, the overall market is rebounding,” the report said.
But the market is also showing signs of weakness.
The average daily volume in ASI 50 stocks has fallen by almost $3.5 million since the end of January, according to the report.”
These numbers show that the market has clearly not recovered as investors have had to bear losses from a range of factors,” Mr McBride told reporters.”
One of the main drivers of the decline in market value has been the recent announcement by the Reserve Bank of the impending phase-out of the common currency, and the ECB’s decision, which will have a negative impact on the global economy.
“He said there is a “very real possibility that the global financial system may have to suffer even more in the next 12 to 18 months than it has already suffered”.
Topics:stocks,investment-and-market-management,economics-and.financial-economics,investments,finance,australiaFirst posted January 15, 2020 17:55:16Contact Peter McWilliamsMore stories from Australia