The Australian Securities Exchange has outshone rival stock markets around the world, according to an annual global report, with capital investments on the rise and the benchmark S&P ASX200 index now resting comfortably above 7,000 points.
Across global markets, about US$9.6 billion was raised by listed companies over the 12 months to October 2019, with US$2.1 billion (or about 22 per cent) of that raised on the ASX, according to Mining Journal’s 2020 Global Finance Report.
For the ASX, that’s a near-70 per cent increase on the previous corresponding period.
The total global volume of raisings was up 43 per cent across all markets, but the ASX showed the greatest strength with an 82 per cent increase in volumes and at around the same average value as last year, of US$5 million.
“The sheer volume of listed resources firms in Canada meant that jurisdiction maintained its position as leader on aggregate deal value, raising US$2.5 billion for companies, though at a modest US$2.2 million, down 27 per cent year on year,” the report stated.
The London Stock Exchange raised US$1.4 billion over the 12 months to October, while all other exchanges raised a combined US$3.6 billion.
Canada took the top spot from Australia for most initial public offerings but lagged both Australia and London in terms of the combined value of those IPOs.
“If you’re an optimist, you’d say the environment for mining finance bounced back last year,” the report said.
“Equity valuations were up year on year, as were the number of secondary raisings and earnings per share. Resources-specific investor sentiment could be described as cautiously optimistic.
“If you’re more of the glass-half-empty persuasion, you’d say the 12 months to October represented another bump along the bottom, albeit a bump upwards. The value of new companies brought to market fell sharply, while the alternative financing sector reported both lower deal volumes and a lack of investment-grade opportunities.”
On balance, the report said the numbers made it tough to be overly bullish about sentiment for financing resources projects on a global scale.
“While Australia remained in an equity bubble to some degree, greenfields developments across the world were unloved, as commodity pricing continued to underwhelm generalist investors,” it said.
The Global Finance Report was released this week but based off data for the 12 months to October period; well before the ASX200 broke above 7,000pts for the first time, in mid-January, when the United States signed a much-anticipated trade deal with China.
The Australian bourse has been on the upswing since, reaching as high as 7,132pts this week.
Across global markets, about US$9.6 billion was raised by listed companies over the 12 months to October 2019, with US$2.1 billion (or about 22 per cent) of that raised on the ASX, according to Mining Journal’s 2020 Global Finance Report.
For the ASX, that’s a near-70 per cent increase on the previous corresponding period.
The total global volume of raisings was up 43 per cent across all markets, but the ASX showed the greatest strength with an 82 per cent increase in volumes and at around the same average value as last year, of US$5 million.
“The sheer volume of listed resources firms in Canada meant that jurisdiction maintained its position as leader on aggregate deal value, raising US$2.5 billion for companies, though at a modest US$2.2 million, down 27 per cent year on year,” the report stated.
The London Stock Exchange raised US$1.4 billion over the 12 months to October, while all other exchanges raised a combined US$3.6 billion.
Canada took the top spot from Australia for most initial public offerings but lagged both Australia and London in terms of the combined value of those IPOs.
“If you’re an optimist, you’d say the environment for mining finance bounced back last year,” the report said.
“Equity valuations were up year on year, as were the number of secondary raisings and earnings per share. Resources-specific investor sentiment could be described as cautiously optimistic.
“If you’re more of the glass-half-empty persuasion, you’d say the 12 months to October represented another bump along the bottom, albeit a bump upwards. The value of new companies brought to market fell sharply, while the alternative financing sector reported both lower deal volumes and a lack of investment-grade opportunities.”
On balance, the report said the numbers made it tough to be overly bullish about sentiment for financing resources projects on a global scale.
“While Australia remained in an equity bubble to some degree, greenfields developments across the world were unloved, as commodity pricing continued to underwhelm generalist investors,” it said.
The Global Finance Report was released this week but based off data for the 12 months to October period; well before the ASX200 broke above 7,000pts for the first time, in mid-January, when the United States signed a much-anticipated trade deal with China.
The Australian bourse has been on the upswing since, reaching as high as 7,132pts this week.