ASX - ASX Limited

[Julia]

Prawn
There are many variants on how you determine your method to profit from using T/A, but almost all use the old saying "Buy into strength, sell into weakness". For an investor, this seems silly, because you are focusing on the fact that a particular business is sound and has a good outlook and therefore is undervalued by the market. If you are trading, you are seeking quick moves and place tight stops to minimize losses. We are looking to capitalise on upward momentum in the case of a long position and stocks that are going down don't qualify under this criteria.... ASX might be a great Company, but T/A doesn't place any bias on this opinion.

Kauri may also be trading using leverage, which may further lead him to maintain a tight stop.....

Cheers

Prawn, you have expressed my question on the pure TA approach, and Reece you've answered it. Whilst I understand the principle and it makes complete sense with respect to companies which might be considered, umm, insubstantial, with a monopoly like the ASX which is bound to have dips in an overall uptrend, I just don't get why you'd incur tax and brokerage, just to buy back in when the trend resumes.

As Prawn says, not having a go at all, but it just puzzles me.
Kauri, have you considered taking into account the fundamental situation as a sort of modification to your pure TA?

 

[Kauri]

Prawn, you have expressed my question on the pure TA approach, and Reece you've answered it. Whilst I understand the principle and it makes complete sense with respect to companies which might be considered, umm, insubstantial, with a monopoly like the ASX which is bound to have dips in an overall uptrend, I just don't get why you'd incur tax and brokerage, just to buy back in when the trend resumes.

As Prawn says, not having a go at all, but it just puzzles me.
Kauri, have you considered taking into account the fundamental situation as a sort of modification to your pure TA?

Hi Julia,
Have attemted to put together an explanation of the way I use T/A in the TA Questions thread instead of filling this thread up with my ramblings... ..
Cheers
Kauri

 

[aussiebuggaa]

Hi all,

ASX is sitting on the long term trend line with upward wedge approaching (sorry can’t paste my graph). I’m interested to hear others views on where this one is going according to the Chart. Cheers,

 

[Lachlan6]

(ASX) is approaching important resistance and I am waiting a long for this one (CFD medium term trade) to break upwards due to the excellent fundamentals. I have a projected target of $56.05 being 100% extension of the previous range giving a nice RR trade.

 

[vishalt]

Stupid question but lol: If the ASX share price starts speeding, who gives it a speeding ticket?

and wow @ this character rule, its ridiculous

 

[Kauri]

Have been short this for the past couple of weeks... originally couldn't see it getting to the $30's but with todays action it is looking more possible by the day...
Cheers
...Kauri

 

[ozambersand]

I am about to display some ignorance here, so don't jump at me!

Is the ASX profitability tied to the value of shares traded or the volume traded?

Second question, is the stock exchange's perceived value of ASX tied to the market price of the XAO or what? (charts show correlation)

Surely if there is a big correction and the volume of shares traded goes up and the total value of shares traded goes up because of this increased volume (even if actual trades are being made at a loss) surely the ASX's income is greater?

Are they worried that in a bear market all the traders will hibernate and volume of trades will decrease?

 

[chilliaa]

Just noticed to directors selling part of their shareholders just after the announcement of half yearly results.

Never a good side when directors start offloading their holdings.

 

[Julia]

ASX

Apologies if there is already a thread on ASX. I can't find one.

I heard something about another couple of exchanges shortly becoming available. So ASX would no longer have a monopoly.

Does anyone know anything about this?

With thanks.

 

[ta2693]

Thank you Julia. I heard from some of my friends talking about this too, but the source of the news can not be confirmed. Based on the rumor and directors' recent offloading behavior, I cut the asx holding which was supposed to be a long term holding share.

 

[ghostworld]

Re: ASX

Apologies if there is already a thread on ASX. I can't find one.

I heard something about another couple of exchanges shortly becoming available. So ASX would no longer have a monopoly.

Does anyone know anything about this?

With thanks.

This has been on the papers recently. I think i originally read about this in AFR. Here's a link from investordaily website.

http://www.investordaily.com/cps/rde/xchg/id/style/2547.htm?rdeCOQ=SID-3F579BCE-40504D87


ASX monopoly threatened
Powerful brokers vie for trading licences
By Madeleine Collins
Tue 24 Jul 2007

Large brokerage houses are challenging the ASX's monopoly on equity markets.

Alternative trading platforms could carve up the monopoly of the Australian Securities Exchange (ASX) if bids to win new market licenses succeed.

ASIC is considering applications for licences from the AXE ECN (AXE) and US-based institutional broker Liquidnet that would introduce two electronic securities platforms into the Australian financial market.

The AXE ECN, formerly known as the Australian electronic communications network, is a joint venture between New Zealand Exchange and brokerage houses Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Bank and Merrill Lynch.

Both would trade in ASX-listed securities but its method of doing so and the kind of trades would differ from that of the ASX.

Bear Stearns Securities Corp would provide Liquidnet's clearing and settlement services.

ECNs are designed to be low cost, high speed platforms that separate listing from trading functions.

They are popular overeseas and competition between trading platforms is common in the United States and Europe.

"These applications represent a significant development in Australian securities markets," ASIC chairman Tony D'Aloisio said.

"They raise policy issues that our regulatory regime has not dealt with before."

In an ASIC-commissioned economic assessment of the bids, consultancy firm CRA International said the regulator needed to weigh up the upside and downside of introducing new platforms.

It said increased competition could undermine liquidity and result in inefficient pricing. It said in turn this could affect the viability of the alternative platforms.

"While competition between trading venues may foster innovation, improved services and lower trading costs, it can also undermine liquidity in existing exchanges and result in inefficient pricing outcomes," CRA said.

However, the report also said increased competition could reduce or avoid monopoly mark-ups, especially in execution and indirect trading costs.

ASIC said it has not yet formed a view about the applications.

It will consult with the Australian Competition and Consumer Commission, which will take recommendations to the Parliamentary Secretary to the Treasurer Chris Pearce.

 

[DowJones]

Re: ASX

This has been on the papers recently. I think i originally read about this in AFR. Here's a link from investordaily website.

http://www.investordaily.com/cps/rde/xchg/id/style/2547.htm?rdeCOQ=SID-3F579BCE-40504D87


ASX monopoly threatened
Powerful brokers vie for trading licences
By Madeleine Collins
Tue 24 Jul 2007

Large brokerage houses are challenging the ASX's monopoly on equity markets.

Alternative trading platforms could carve up the monopoly of the Australian Securities Exchange (ASX) if bids to win new market licenses succeed.

ASIC is considering applications for licences from the AXE ECN (AXE) and US-based institutional broker Liquidnet that would introduce two electronic securities platforms into the Australian financial market.

The AXE ECN, formerly known as the Australian electronic communications network, is a joint venture between New Zealand Exchange and brokerage houses Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Bank and Merrill Lynch.

Both would trade in ASX-listed securities but its method of doing so and the kind of trades would differ from that of the ASX.

Bear Stearns Securities Corp would provide Liquidnet's clearing and settlement services.

ECNs are designed to be low cost, high speed platforms that separate listing from trading functions.

They are popular overeseas and competition between trading platforms is common in the United States and Europe.

"These applications represent a significant development in Australian securities markets," ASIC chairman Tony D'Aloisio said.

"They raise policy issues that our regulatory regime has not dealt with before."

In an ASIC-commissioned economic assessment of the bids, consultancy firm CRA International said the regulator needed to weigh up the upside and downside of introducing new platforms.

It said increased competition could undermine liquidity and result in inefficient pricing. It said in turn this could affect the viability of the alternative platforms.

"While competition between trading venues may foster innovation, improved services and lower trading costs, it can also undermine liquidity in existing exchanges and result in inefficient pricing outcomes," CRA said.

However, the report also said increased competition could reduce or avoid monopoly mark-ups, especially in execution and indirect trading costs.

ASIC said it has not yet formed a view about the applications.

It will consult with the Australian Competition and Consumer Commission, which will take recommendations to the Parliamentary Secretary to the Treasurer Chris Pearce.

I also heard that there are grumblings that the ASX needs to be independent for goverance purposes. Since they are listed themselves it is a conflict of interest. I would like to see the ASX give itself a speeding ticket in the form of an ASX Query one day. That would be humourous

 

[Julia]

Many thanks, Ghostworld. It sounds from that as though it's by no means definite. Meantime, two directors plus CBA have sold their holdings which doesn't inspire a lot of confidence in the stock.

 

[ghostworld]

Many thanks, Ghostworld. It sounds from that as though it's by no means definite. Meantime, two directors plus CBA have sold their holdings which doesn't inspire a lot of confidence in the stock.

Yeah still not definite.

There was a better article that i read on this subject. It argued that with the recent problems (re: regulators sitting on their hands on margin loans, hedge funds and non-disclosure issues), it is more likely now that ASIC would introduce a competitor.

The article further stipulates that there's a lot of bad blood between the boss of ASX and the boss of ASIC. Can't remember their names of the top of my head but the current head of ASIC was outed from his position at ASX by ASX's current boss.

 

[reece55]

Bar the threat of increased competition is the more important theme of a slowdown in the growth of ASX's earnings.....

In my opinion, it's only going to get worse for them, because whilst volumes are up, the loss in fees from listed entities, which is based on market capitalisation (significant reduced now due to the downturn) and one off initial listing fees from floats now removed, the impact is being felt on their bottom line. Plus, all of the recent cost reduction exercises are basically exhausted....... Our half year show the following:

7% growth in top line revenue (The first sub 10% for a long time)
7% growth in underlying NPAT..... (Same as above)...

The company presently is expensive on valuation. Granted, it's a monopoly, but its growth will be constrained in this environment.....

T/A - I don't really have to say much, looks like the ticker fell off the cliff.....

Cheers

 

[Julia]

In my opinion, it's only going to get worse for them, because whilst volumes are up, the loss in fees from listed entities, which is based on market capitalisation (significant reduced now due to the downturn) and one off initial listing fees from floats now removed, the impact is being felt on their bottom line.

Thanks, Reece. I'd overlooked the fact that their fees are based on market caps. Doesn't seem to be anything positive in their outlook.

 

[osmosis]

Thanks, Reece. I'd overlooked the fact that their fees are based on market caps. Doesn't seem to be anything positive in their outlook.

The share price has really reflected your concern. The share price is really sliding. Where will it end?

 

[chilliaa]

The share price has really reflected your concern. The share price is really sliding. Where will it end?

Does anyone have any updates on ASX?
Its starting to look, at least from my naive point of view, quite cheap?
Anyhelp appreciated.

 

[vishalt]

Does anyone have any updates on ASX?
Its starting to look, at least from my naive point of view, quite cheap?
Anyhelp appreciated.

I bought in at $35.

I'm not really worried unless it goes below $15.

The business from what I understand it is simple: the more trades, the more money made and there have been record amount of trades as investors fled from the market in the first few months.

 

[sardines]

I bought in at $35.

I'm not really worried unless it goes below $15.

The business from what I understand it is simple: the more trades, the more money made and there have been record amount of trades as investors fled from the market in the first few months.

sounds scary if it went below $15 :couch
As the folks have mentioned above, the entry of aggressive competitors and a declining stock market is not a good outlook for the firm. To see the upside potential I'd need more certainty around the politics. Technically, the stock has been sliding and hasn't been able to hold ground for long so I'd be more careful around my entry point. Good luck