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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

The ASX capital market is off to a slow start in FY23

After a bumper finish to FY22, capital was harder to come by in July.

$9.3 billion was raised in capital via the ASX in July, but the absolute vast majority of that was via secondary markets, as primary markets took a big fall.

That figure was 10% down on the capital raised in July 2021.

Just $278 million was raised via primary markets for the month, down an incredible 95% on July 2021, in which $5.8 billion was raised.

Capital raised via secondary markets made up the gap, with $9 billion, double the $4.5 billion raised in July 2021.

Listed companies can access capital from primary and secondary markets.

“Primary markets reflect when new capital is raised via new shares issued, such as through an IPO or follow-on raisins such as rights issues or share placements,” general manager of listings at the ASX James Posnett says.

“Secondary markets are where existing shares are traded on the daily by investors.”

The quiet July follows a big 2022 financial year: more than $255 billion in capital was raised by ASX companies, 149% more than in 2021.

Both the number of total trades (up 5%) and average daily trades (up 10%) rose in July, but the total cash market value fell 6% year-on-year.

Futures volumes fell, although the notional value of OTC interest rate derivative contracts centrally cleared was $416.116 billion, up 36% on July 2021.

Six new entities were admitted in July, though nine were delisted, bringing the total number of listed entities on the ASX to 2,314, a 3% increase year-on-year.

- Daniel Paproth

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