ASX trading volumes rise despite capital raising slump

The Australian Securities Exchange (ASX:ASX) kicked off the year with a dramatic spike in market participation, according to the latest monthly activity report.

Despite a cooling in capital-raising efforts, equity trading volumes surged in January, with the average daily number of trades skyrocketing 71% compared to the same period last year.

Investor appetite remained robust as the average daily on-market value traded climbed 51% to reach $6.9 billion, even as market volatility retreated to a steady 0.4% daily average.

The frantic pace on the trading floor stood in contrast to a quieter month for primary markets.

Total new capital quoted fell to $1.7 billion, down from $2.3 billion a year prior, while the total number of listed entities slipped to 2,046 following a net loss of six companies in January.

Nevertheless, the infrastructure behind the scenes remained busy; settlement values for securities held in CHESS and Austraclear both saw a 9% year-on-year increase, signaling that while new entries to the board have slowed, the liquidity and movement of existing assets are hitting a higher gear.