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ASX offers increasing access to international companies

ASX offers increasing access to international companies

Listings by foreign companies continue to accelerate on the Australian Securities Exchange (ASX), with more than 260 on offer to date.

The ASX has over 2,200 listed companies with a total market capitalisation of around $1.75trn. The number of foreign companies included in that total has doubled in the past four years.

In 2016, it listed more companies in total than any other global exchange, launching 118 initial public offerings (IPOs) compared with second-placed Nasdaq in the US with 84 and 64 on the London Stock Exchange.

While the ASX does list a lot of smaller companies, it ranked seventh in the Top 10 globally for value, reaching US$28.7bn between 2014 and 2016.

The diversity of international companies available to ASX investors continues to grow, with countries such as New Zealand (51 listings), Israel (15), Singapore (17), the US (38), Malaysia (11) and Ireland (2) represented, ASX Ltd’s chief executive Dominic Stevens told the Stockbrokers and Financial Advisers conference in Sydney on 24 May, 2017.

“By listing foreign companies, we are providing product for Australian investors to get exposure to offshore markets,” Stevens said. “Local investors can now access a growing range of international companies, many of which are in fast-growing, high-tech industries that have traditionally been hard to get exposure to in Australia.”

The industry dynamic of listings on the ASX has changed from around half being mining-related companies in 2012, to a larger proportion of non-mining companies in 2015 and 2016, he said.

The technology sector is now the third-largest industry sector on the ASX by number of listings, with more than 200 companies available to investors and more than 30 tech companies entering the sector over the past 12 months.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. It’s vital to remember that the value of shares in any company can fall as well as rise, which means you could lose money by investing in them. Past performance is not an indication of future performance. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and a Participant of the ASX Group and Chi-X Australia. Commonwealth Financial Planners are representatives of Commonwealth Financial Planning Pty Ltd ABN 65 003 900 169 AFSL 231139 a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 (the Bank). The commentary provided from external companies that are not a member of the Commonwealth Bank of Australia Group of Companies (the CBA Group) does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. Neither Commonwealth Securities Limited nor members of the CBA Group accept any liability for losses or damage arising from any reliance on external companies and their products, services and material.