The Australian Securities Exchange (ASX), headquartered in Sydney, is one of the world’s top 10 listed exchange groups. Known for its stable regulatory environment, cutting-edge trading technology, and diverse market offerings, the ASX is a hub for Australian and international investors alike.
Daily Movers – Australian Stock Exchange
Established over two decades ago through a series of mergers, the ASX has grown to become a well-regulated marketplace for a wide range of securities, including equities, bonds, derivatives, and ETFs. In this article, we will explore the history, structure, key divisions, and impact of the ASX.
Top Australian Listed Companies
The Australian Stock Exchange is home to a diverse range of companies, with over 2,100 listed firms in mid 2024. This number can change from time to time, as new firms IPO, and others may delist.
Whilst there are many companies listed, certain stocks get more attention than others. We have highlighted some of the top Australian listed stocks below, but there are many more besides. Depending on your investing or trading goals, there will be certain sectors or trends that might appeal to you more than others.
| Company | Market Cap (As of November, 2024) |
|---|---|
| CBA Commonwealth Bank of Australia | $261.48 Billion |
| BHP BHP Group Limited | $201.99 Billion |
| CSL CSL Limited | $132.53 Billion |
| NAB National Australia Bank Limited | $121.42 Billion |
| WBC Westpac Banking Corporation | $115.29 Billion |
| ANZ ANZ Group Holdings Limited | $96.04 Billion |
| MQG Macquarie Group | $87.42 Billion |
| WES Wesfarmers Limited | $79.07 Billion |
| SQ2 Block Inc. | $79.00 Billion |
| NEM Newmont Corporation | $74.55 Billion |
Daily Movers – Indices
Demystifying The Australian Stock Exchange
The Australian Securities Exchange (ASX) was formed in 2006 through the merger of the Australian Stock Exchange and the Sydney Futures Exchange. However, the roots of the ASX date back to 1987, when six state-based stock exchanges were consolidated to form a single national exchange, the Australian Stock Exchange. This consolidation brought about improved efficiency, regulation, and technological innovation.
| Aspect | Detail |
|---|---|
| Foundation Year | 2006 (as ASX Ltd) |
| Market Capitalisation | Over $2 trillion USD (as of 2023) |
| Major Markets | ASX Equity Market, ASX Debt Market, ASX Derivatives |
| Notable Milestones | Introduction of the ASX 200 (2000), Shift to CHESS (1994) |
One of the ASX’s key milestones was its early adoption of electronic trading, starting with the CHESS (Clearing House Electronic Sub-register System) platform in 1994, which streamlined settlement and clearing for trades. The ASX was also one of the first exchanges globally to demutualise and list on its own exchange in 1998, making it a pioneer in exchange modernisation.
1994: Launch of CHESS, one of the first fully electronic settlement systems.
2000: Introduction of the ASX 200 Index, now the benchmark index of the ASX.
2006: Formation of ASX Ltd, combining the Australian Stock Exchange and Sydney Futures Exchange.
2023: Planned upgrade to replace CHESS with a blockchain-based settlement system.
Structure
The ASX is organised into multiple market segments, each catering to different types of securities and investor needs. This structure supports a wide variety of investment products, from blue-chip stocks to commodities and fixed-income securities.
Equity Market
The ASX Equity Market is the most widely known and traded segment of the ASX, where stocks of large and mid-sized companies are listed. This market attracts both domestic and international investors, offering exposure to established Australian companies across various sectors such as banking, mining, healthcare, and technology.
Debt Market
The ASX Debt Market includes a range of fixed-income products, such as Australian Government Bonds (AGBs), corporate bonds, and hybrid securities. This market allows investors to access relatively stable, income-generating securities and provides corporations and the government with a platform for raising capital.
The ASX Debt Market is popular among institutional investors, superannuation funds, and income-focused investors looking for stability and reliable returns.
Derivatives Market
The ASX Derivatives Market is one of the largest derivatives markets in the Asia-Pacific region, offering futures and options based on a variety of underlying assets. This includes indices, individual stocks, and commodities, enabling investors to hedge against risk or speculate on price movements.
CHESS (Clearing House Electronic Sub-register System)
The CHESS platform, launched in 1994, is the ASX’s proprietary electronic settlement and clearing system. CHESS plays a critical role in facilitating trade settlement and maintaining the ownership register for ASX-listed shares. Plans are currently underway to upgrade CHESS to a blockchain-based system, which is expected to improve speed, efficiency, and transparency for clearing and settlement.
Major Industries
Banking and Financial Services
The banking sector is a dominant force on the ASX, with the “Big Four” banks (Commonwealth Bank of Australia, Westpac, ANZ, and NAB) among the largest and most actively traded stocks. This sector plays a crucial role in the Australian economy, providing essential services such as retail banking, insurance, and asset management.
Mining and Resources
Australia is rich in natural resources, and the mining and resources sector is one of the most influential on the ASX. Companies like BHP Group and Rio Tinto are leaders in the production of iron ore, coal, and minerals, driving a significant portion of the country’s exports. The sector also includes energy companies like Woodside Petroleum, contributing to Australia’s energy independence.
Biotechnology and Healthcare
The biotechnology and healthcare sector has grown rapidly in recent years, with companies like CSL Limited and Cochlear becoming global leaders in their fields. This sector benefits from Australia’s strong healthcare system and growing investment in research and development, making it attractive to growth-focused investors.
Consumer Goods and Retail
Australia’s consumer goods and retail sector is represented by companies like Woolworths Group and Wesfarmers, which operate major supermarket chains, department stores, and other retail businesses. This sector is a key indicator of consumer confidence and economic stability in Australia.
