Overview of ASX

Question 1

Daily turnover and market cap

Answer 1

$5b / day and MC of $2T

Question 2

Ranking of Australian stock market based on MC

Answer 2

8th in world

Question 3

Regulator of ASX

Answer 3

ASIC - Australian Securities and Investment Commission

Question 4

Indices

Answer 4

S&P/ASX 200 (c.80% of cap)
All Ordinaries index; made up of the 500 largest companies
S&P/ASX 300 / 100 / 50 / 20

Question 5

ASX in 2018

Answer 5

Opened $6,050 | Closed $5,650
Decline due to:
(1) Banking Royal Commission,
(2) Decline of oil prices,
(3) Weakening AUD

Question 6

ASX in 2019

Answer 6

Opened $5,650 | Closed $6,800
Increase due to:
(1) Starting from low,
(2) Decreasing interest rates (1.5% to 0.75%),
(3) Economic optimism following concerns around trade wars + Brexit

Question 7

ASX in 2020

Answer 7

Opened $6,800 | Closed $6,600
Crash and V-shaped recovery due to:
(1) COVID-19,
(2) Fiscal stimulus and decreasing interest rates in response to COVID,
(3) Resilient economy

Question 8

ASX in 2021

Answer 8

Opened $6,600 | Closed $7,500
Increase due to:
(1) Continued fiscal stimulus and favourable monetary policy
(2) Vaccination rates
(3) Improving economic fundamentals