The document provides information about the Australian Securities Exchange (ASX) and the stock market in Australia. It discusses that the ASX is Australia's primary securities exchange, formed from the merger of the Australian Stock Exchange and Sydney Futures Exchange. It operates trading platforms for equity securities and derivatives. The ASX facilitates trading, clearing, settlement and compliance for the Australian stock market and lists some of Australia's largest companies. It also discusses the National Stock Exchange of Australia as a smaller stock exchange in the country.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
Introduction of BSE
Vision and mission of BSE
Objectives of BSE
BSE Functions
SENSEX
MCQ
Bibliography
Price determination
Economic contribution
Marketability and liquidity
A centralized market for buying and selling stocks where the price is determined through supply-demand mechanism.
Stock exchange belong to “Secondary Market” in which securities are already issued by companies are subsequently traded among investors.
Introduction of BSE
Vision and mission of BSE
Objectives of BSE
BSE Functions
SENSEX
MCQ
Bibliography
Price determination
Economic contribution
Marketability and liquidity
A centralized market for buying and selling stocks where the price is determined through supply-demand mechanism.
Stock exchange belong to “Secondary Market” in which securities are already issued by companies are subsequently traded among investors.
A Study on Investors Perception Towards Sharemarket in Sharekhan Ltdijtsrd
The globalization of financial markets has been increasing the size of the community of retail investors' over the past two decades by providing a wide variety of market and investment options Hence, it makes their investment decisions process more complex The factors influencing investor's perception are return on investment, market trend or risk, short term profitability, price of the share, dividend policy, past financial performance, company reputation, reputation of the board, current earnings of the company and expert opinion This study focuses the main factors influencing investor's perception Vijay. S | Dr. Ch. Balanageswara Rao "A Study on Investors Perception Towards Sharemarket in Sharekhan Ltd." Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-6 , October 2018, URL: http://www.ijtsrd.com/papers/ijtsrd18384.pdf
A study of correlation among major stock market indices of the world (only re...Gagan Varshney
Portfolio means a mix of assets (both real and financial) invested in and held by an investor. Diversification is the act of holding many securities to lessen risk.
The age-old wisdom about not putting ―all your eggs in one basket‖ applies very much in the case of portfolios. Portfolio risk (generally defined as the standard deviation of returns) is not the weighted average of the risk (standard deviation) of individual assets in the portfolio. This gives rise to opportunities to eliminate the risk of assets, at least partly, by combining risky assets in a portfolio.
This study aims to find out the degree of existence of such opportunities which can minimise the portfolio risk. It tries to answer the question,
―Can there be such opportunity present in the International Equity market which is not corrected by arbitragers?‖
―Are diversification benefits still to be found in international investing?‖
This study also tries to find out degree of interdependence among world‘s major stock exchanges. Pearson Correlation Coefficient has been used to find out the relation between the monthly returns of world‘s major stock indices.
A market is a market for trading stocks of various companies, derivatives etc. Companies list their stocks on various exchanges and are traded among various investors.
Investigation of determinants to augment investment in indian stock marketNavleen Kaur
The purpose of this study is to access the factors which resist common man in India from investing in stock market and ways to overcome such hesitations with the sole motive to induce investment in Indian Stock Market. India is one of the fastest developing countries in the world. As country’s growth is mainly dependent upon its financial markets, India is also concentrating towards its share market sector. Indian stock markets are the engines that drive the vehicle of our economy by pumping in much needed capital. The study compares investment in Indian Stock Market with United State, London and Japanese Stock Market. This research is based upon a survey conducted on both investors and non-investors. This paper tends to find out why in a population of over one billion; barely 3% invest in equity markets in India, whereas in developed countries like US, UK and Japan more than 50% invest in equity markets.
Index Terms- Indian Stock Market, Foreign Stock Markets, Capital Market, BSE, NSE, Stock market integration, Global stock markets
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
2. AN INTRODUCTION to STOCK MARKET
A stock market or equity market is a public entity (a loose
network of economic transactions, not a physical facility or
discrete entity) for the trading of company stock (shares) and
derivatives at an agreed price; these are securities listed on a
stock exchange as well as those only traded privately. The stocks
are listed and traded on stock exchanges which are entities of a
corporation or mutual organization specialized in the business
of bringing buyers and sellers of the organizations to a listing of
stocks and securities together. Market participants include
individual retail investors, institutional investors such as mutual
funds, banks, insurance companies and hedge funds, and also
publicly traded corporations trading in their own shares.
The size of the world stock market was estimated at about $36.6
trillion at the beginning of October 2008. The total world
derivatives market has been estimated at about $791 trillion face
or nominal value, 11 times the size of the entire world economy.
3. AUSTRALIA- ECONOMIC OVERVIEW
The economy of Australia is one of the largest capitalist
economies in the world with a GDP of US$1.57 trillion.
With a relatively high-growth and low-inflation economy
supported by robust political and economic institutions,
and an internationally competitive business sector,
Australia now ranks as the 12th largest economy in the
world (measured by GDP), and the 4th largest in the Asia
Pacific region.
This firm international standing is reflected in the fact that
Australia’s three largest trading partners – China, Japan
and the United States - are also the three largest economies
in the world; and its two largest investment partners - the
US and UK – are home to the world’s largest capital
markets. The Australian economy is dominated by
its service sector, comprising 68% of GDP.
4. Australia- Economic Overview- continued……
Spurred by its healthy political and economic position, Australia
has become an attractive investment destination for global
investors as well as home to many major multinational financial
services providers. With a diverse investor group comprised of
40% foreign investors, 40% domestic institutional investors and
20% retail investors, the Australian equity market is well placed
in the global economy.
The Australian Securities Exchange in Sydney is the largest
stock exchange in Australia and in the South Pacific and ranks
9th in the world in terms of market capitalisation.
There are basically two main stock exchanges in Australia:-
Australian Securities Exchange (ASX)
National Stock Exchange of Australia (NSX)
5. Australian Securities Exchange (ASX)
INTRODUCTION
The Australian Securities Exchange (ASX) is Australia's primary securities
exchange. It was created by the merger of the Australian Stock Exchange and
the Sydney Futures Exchange in July 2006. Today, ASX has an average daily
turnover of $4.685 billion and a market capitalisation of around A$1.4 trillion,
making it one of the world's top-10 listed exchange groups, comparable to the
New York Stock Exchange, London Stock Exchange and Deutsche Boerse.
HISTORY
The ASX Group's origins as a national exchange go back to 1987. The Australian
Stock Exchange Limited was formed in 1987 after the Australian Parliament
drafted legislation that enabled the amalgamation of six independent state-
based stock exchanges. Each of those exchanges brought with it a history of
share trading dating back to the 19th century.
In 2006 The Australian Stock Exchange merged with the Sydney Futures
Exchange and originally operated under the name Australian Securities
Exchange.
Later, however, ASX launched a new group structure to better position it in the
contemporary financial market environment. From 1 August 2010 the
Australian Securities Exchange has been known as the ASX Group.
6. Australian Securities Exchange (ASX)- Continued…….
ASX Group is a market operator, clearing house and payments system
facilitator. It also oversees compliance with its operating rules, promotes
standards of corporate governance among Australia's listed companies
and helps to educate retail investors.
REGULATION
The Australian Securities and Investments Commission (ASIC) has
responsibility for the supervision of real-time trading on Australia's
domestic licensed financial markets and the supervision of the conduct
by participants (including the relationship between participants and
their clients) on those markets. ASIC also supervises ASX's own
compliance as a public company with ASX Listing Rules.
ASX Compliance is an ASX subsidiary company that is responsible for
monitoring and enforcing ASX-listed companies' compliance with the
ASX operating rules.
The Reserve Bank of Australia (RBA) has oversight of the ASX's clearing
and settlement facilities for financial system stability.
7. Australian Securities Exchange (ASX)- Continued…….
PRODUCTS
Products and services available for trading on ASX include
shares, futures, exchange traded options, warrants, contracts for
difference, exchange-traded funds, real estate investment trusts,
listed investment companies and interest rate securities.
The biggest stocks traded on the ASX, in terms of market
capitalisation, include BHP Billiton, Commonwealth Bank of
Australia, Westpac, Telstra, Rio Tinto, National Australia
Bank andAustralia and New Zealand Banking Group.
The major market index is the S&P/ASX 200, an index made up
of the top 200 shares in the ASX. This supplanted the previously
significant All Ordinaries index, which still runs parallel to the
S&P ASX 200. Both are commonly quoted together. Other
indices for the bigger stocks are the S&P/ASX 100 and S&P/ASX
50
8. Australian Securities Exchange (ASX)- Continued…….
TRADING SYSTEMS
ASX Group has two trading platforms - ASX Trade,[ which
facilitates the trading of ASX equity securities and ASX Trade24
for derivative securities trading.
All ASX equity securities are traded on screen on ASX Trade. ASX
Trade is a NASDAQ OMX ultra-low latency trading platform
based on NASDAQ OMX's Genium INET system, which is used
by many exchanges around the world. It is one of the fastest and
most functional multi-asset trading platforms in the world,
delivering latency down to ~250 microseconds.
ASX Trade24 is ASX global trading platform for derivatives. It is
globally distributed with network access points (gateways)
located in Chicago, New York, London, Hong Kong, Singapore,
Sydney and Melbourne. It also allows for true 24-hour trading,
and simultaneously maintains two active trading days which
enables products to be opened for trading in the new trading day
in one time zone while products are still trading under the
previous day.
9. Australian Securities Exchange (ASX)- Continued…….
SETTLEMENT
Investors hold shares in one of two forms. Both operate as uncertificated holdings (rather
than through the issue of physical share certificates):
Issuer-sponsored. The company's share register administers the investor's holding and
issues the investor with a security-holder reference number (SRN) which may be quoted
when selling.
Clearing House Electronic Sub-register System (CHESS). The investor's controlling
participant (normally a broker) sponsors the client into CHESS. The investor is given a
holder identification number (HIN) and monthly statements are sent to the investor
from the CHESS system when there is a movement in their holding that month.
Holdings may be moved from issuer-sponsored to CHESS or between different brokers
by electronic message initiated by the controlling participant.
SHORT SELLING
Short selling of shares is permitted on the ASX, but only among designated stocks and
with certain conditions:
ASX Trading Participants (brokers) must report all daily gross short sales to ASX. The
report will aggregate the gross short sales as reported by each Trading participant at an
individual stock level.
ASX publishes aggregate gross short sales to ASX participants and the general public.
Many brokers do not offer short selling to small private investors. LEPOs can serve as an
equivalent, while contracts for difference (CFDs) offered by third-party providers are
another alternative.
In September 2008, ASIC suspended nearly all forms of short selling due to concerns
about market stability in the ongoing global financial crisis. The ban on covered short
selling was lifted in May 2009.
10. Australian Securities Exchange (ASX)- Continued…….
OPTIONS
Options on leading shares are traded on the ASX, with standardised sets of
strike prices and expiry dates. Liquidity is provided by market makers who are
required to provide quotes. Each market maker is assigned two or more stocks.
A stock can have more than one market maker, and they compete with one
another. A market maker may choose one or both of:
Make a market continuously, on a set of 18 options.
Make a market in response to a quote request, in any option up to 9 months
out.
In both cases there is a minimum quantity (5 or 10 contracts depending on the
shares) and a maximum spread permitted.
Due to the higher risks in options, brokers must check clients' suitability before
allowing them to trade options. Clients may both take (i.e. buy) and write (i.e.
sell) options. For written positions, the client must put up margin.
MARKET INDICES
The ASX maintains stock indexes concerning stocks traded on the exchange in
conjunction with Standard & Poor's. There is a hierarchy of index groups called
the S&P/ASX 20, S&P/ASX 50, S&P/ASX 100, S&P/ASX 200 and S&P/ASX 300,
notionally containing the 20, 50, 100, 200 and 300 largest companies listed on
the exchange, subject to some qualifications.
11. National Stock Exchange of Australia- NSX
National Stock Exchange of Australia (NSX) is a stock exchange based
in Newcastle, Australia. It is owned and operated by NSX Limited, which is
listed on the Australian Securities Exchange on 13 January 2005. It also operates
SIM Venture Securities Exchange. On 20 December 2006 the Newcastle Stock
Exchange formally sought approval and was granted a change of name by the
Minister to National Stock Exchange of Australia and still trades by the
acronym of "NSX".
The NSX lists various companies within Australia and overseas that meet its
listing rule requirements. Trading is all-electronic based on time and price
priority using NETS (the NSX Electronic Trading System) which is based on
the NASDAQ OMX X-stream trading platform. Settlement of securities is
electronic and on a T+3 basis utilising the ASTC CHESS system.
HISTORY
The NSX was founded in 1937 and in the past had listed as many as 300 local
and regional companies. Some grew to become significant businesses, such
as Brambles Limited. It was reactivated in its present form in 2000 with about
70 listed companies.
In 2011, National Stock Exchange of Australia featured on 2011 Mines and
Money Australia conference on mining and investments
12. NSX-Continued……..
TRADING SYSTEMS
The National Stock Exchange of Australia has been
operating as an Australian Market Licencee since
February 2000. In April 2005 NSX of Australia
acquired the Bendigo Stock Exchange (currently
known as the SIM Venture Securities Exchange or
SIMVSE). Both markets operate on international
standard electronic trading systems and settlement is
available electronically via ASX Clear CHESS system or
manually for non-CHESS enrolled securities.
13. NSX-Continued……
TRADING SCHEDULE
National Stock Exchange of Australia has a start-of-day
enquiry session from 2:30am to 3:00am, a pre-open
sesstion from 3:00am to 10:00am, a normal trading
session from 10:00am to 4:00pm, and a post-market
session (end-of-day enquiry) from 4:00pm to 11:00pm
(all times in AEST).
Current holidays: Good Friday, Easter Monday, Anzac
day (25 April), Queen's birthday (June) and Christmas
Day (25 December) and New Year's Day (1 January).
14. NSX- Continued……..
MARKET INDICES
Below is the list of all NSX indices:
NSX All Equities Index
NSX All Agriculture Index
NSX All Finance Index
NSX All Investment Index
NSX All Property Index
NSX All Resources Index
NSX All Technology Index
SIMVSE All Equities Index
15. NSX- Continued………….
SIMVSE Joint Venture with FEX
FEX Group owns 50% of the SIM Venture Securities
Exchange (SIM VSE) in a joint venture with the National
Stock Exchange of Australia, which was launched in July
2010. SIM VSE operates a securities market specialising in
driving investment in the clean technology, renewable
energy, biological science and related technology and
service industries. SIM VSE has trading capability in cash
equities executed using the NasdaqOMX X-Stream trading
platform. Orders are entered by market participants via the
electronic market interface. The trading platform compares
bid and offers entered into the system and automatically
executes trades in strict time/price priority. Trades are
settled through CHESS.
16. Australian Stock Market Report
Thursday 10, October 2013
SUMMARY CLOSE MOVEMENT PERCENTAGE
CHANGE
All Ordinaries 5151.60 3.50 0.10
All Industrials 5153.00 3.60 0.10
50 Leaders 5317.80 4.00 0.10
17. Australian stock market to improve
in 2014: UBS
UBS anticipates the Australian stockmarket will improve in
2014 as the lower Australian dollar and interest rates begin
to have a positive impact and business confidence lifts post
the federal election.
The investment bank thinks the Australian market
currently offers good value based on price-earnings
multiples and forecasts earnings per share (EPS) growth in
the next financial year to be between 6-7%, against the
market estimate of 10%.
The bank listed four reasons as to why the Australian
market has dropped by over 10% since May: it was looking
expensive, it was too heavily overweight yield compared to
other markets, the pullback from foreign investors amid
the falling dollar and increased fears about the Australian
economy.
18. However, the effects of interest rate reductions and
lower $A are beginning to kick in, which will boost
corporate earnings in the medium term.
The investment bank estimates the drop in the $A to
93 cents from $1.04 will boost Australian companies'
aggregate market earnings by 4% in 2013-14, and by 2%
excluding the resources sector.
19. "While the economy and earnings cycle will likely continue
to work through the current soft patch, the foundations are
likely being laid for a better CY14 rather than a slide into
outright contraction," UBS said.
But UBS said the key risk to this is the domestic economy
outside of negative shocks from China, with increased talks
about a recession dampening sentiment.
"Sentiment towards the economy has clearly soured in
recent months as the capital spending cycle has begun to
weakn while the non-mining economy remains subdued,"
the bank said.