ASX less volatile in December 2008

Some calm returned to the Australian stock market in December 2008.

The Australian Securities Exchange (ASX) said in its monthly activities report for December 2008, released on Tuesday, that equity and debt markets around the world were less volatile in December 2008 compared to October and November.

But markets were still a lot more volatile compared the period before the onset of the global credit crisis.

The average daily movement during December in Australia's All Ordinaries index was 1.3 per cent, down from 2.7 per cent in November and 3.0 per cent in October.

The All Ordinaries index was 43 per cent lower for the year, compared to 2007.

Total cash market traded value in December 2008 was $74.0 billion - down 34 per cent on the prior corresponding period.

Total cash market traded value in calendar 2008 was $1.4 trillion - 12 per cent lower than in 2007.

The ASX said Australian equity values were marginally lower in December, with a Christmas-inspired rally late in the month helping to offset early falls.

Average daily trades for December were up 14 per cent to 370,531.

Average daily trades for the 2008 calendar year were up 54 per cent to 421,796.

Activity in December 2008 was underpinned by trading linked to large capital raisings in the banking sector, and significant corporate announcements by telco Telstra and national airline Qantas.

There were some large institutional placements, including Westpac ($2.5 billion), QBE Insurance ($2.0 billion), and Commonwealth Bank ($2.0 billion).

Two large dividend reinvestment plans were completed, by ANZ Bank ($1.5 billion) and Westpac ($1.4 billion).

Fewer entities sought to list on the Australian stock exchange during 2008, and companies raised a lot less money, as global credit markets tightened up and equity markets dived.

The ASX said that for the 2008 calendar year, 93 new entities were listed, compared to 314 over 2007.

There were just two new listings in December 2008, compared to 58 in the prior corresponding period.

The number of total listed entities at the end of December 2008 was up one per cent at 2,223, compared to 2,209 in 2007.

Total capital raised in 2008 was $62.5 billion - down 24 per cent on 2007.

There were 88 per cent fewer initial public offers (IPOs), and secondary capital raisings were down four per cent for the year.

But total capital raised in December 2008 was up 51 per cent to $13.1 billion - all from secondary capital raisings, which were up 156 per cent on the prior corresponding period.

No new capital was raised through IPOs for the second month in a row.