The ASX or the Australian Securities Exchange Ltd is the governing body of the Australian stock exchange which is physically located in Sydney, Australia. The ASX was founded in 1987 and today has an average daily turnover of AU$4.685 billion and is listed as one of the top 15 exchange groups in the world.
The importance of a strong Australian dollar cannot be understated but global economic trends are highly volatile, which makes it hard for the dollar to remain relevant on a global scale, especially compared to the United States Dollar.
If you choose to buy shares in Australia then it is wise to keep an eye on the ASX throughout the year and see where the stock market is at. The recent years have been tumultuous for the entire planet, to say the least, and the world’s stock markets have been hit hard. This is why it is of utmost importance to monitor not only the ASX but all stock markets the world over if you have prudently invested in and diversified your funds.
The state of the ASX is an entity that needs to be kept tabs on, especially if you are an Australian investor. Keep in mind there are two main trading platforms of the ASX: The ASX Trade enables the trading of ASX equity securities and the ASX Trade24 which is designated for securities trading.
February 2022 began as a good month for the ASX that saw a half a percent rise in shares, which was welcome news considering the rate rise concerns in January led to share prices going stagnant. Unfortunately, the recent Russian invasion of Ukraine in late February saw a 3 percent share price plunge, which is the biggest drop since September 2020.
Iron miners took a hit as well, as concerns were raised over the reduced demand from China and the call for the reduction of their stockpiles.
The Omicron variant has dealt a blow to QANTAS whose stocks fell 5.1 percent and are projecting a $650 million loss in the second half of the financial year.
The gold mining sector has seen a positive price increase, with the likes of Perseus Mining gaining by 12.3 percent and Evolution Mining up by 4.8 percent. As of mid-March 2022, there has been a rise in value for the stock of manufacturing companies such as Novonix Ltd, which produces anode materials for batteries, and Boral Ltd, which manufactures and supplies building materials in Australia as well as the United States and some countries in Asia.
The overall view of the ASX index began positively at the beginning of the year, with a 13 percent raise over 2021 which was a welcome sight since the crash in March 2020 due to COVID-19. Unseen factors, however, saw a more tumultuous time with the ASX and there are still fears of more COVID variants in the future giving a hit to the transport sector. The Ukraine invasion was also not foreseen and has had a negative impact albeit it is unknown for how long, which is one of the reasons it is important, as an investor, to keep a wary eye on the stock market at all times, as even whispers can change the value of stock in an instant.
