Companies listed on the Australian share market raised a record $90 billion in capital during the 2008/09 financial year despite the global economic crisis.
The Australian Securities Exchange (ASX) said in its activity report for June 2009, that the $90 billion raised eclipsed the previous record of $77.9 billion raised in the 2007 financial year.
The report, released on Monday, said capital raisings in the 2009 financial year comprised initial raisings of $1.93 billion – down 83 per cent on the 2008 financial year – and secondary raisings of $88.1 billion – up 74 per cent on 2008.
In June 2009, companies raised $10.2 billion – up 95 per cent on the same month a year ago, including $77.3 million of new capital and $10.1 billion in secondary raisings.
Large individual capital raisings in June included ANZ Bank ($2.5 billion), Santos ($1.2 billion) and Mirvac Group ($0.9 billion).
The ASX said secondary capital raising activity continued to flow as companies took advantage of strong demand for stock and the underlying efficiency of the capital raising process in Australia.
However, only 45 new entities listed on the share market for the 2009 financial year, compared to 236 in the prior year.
There was only one new listing in June 2009, down from 14 in June 2008.
The ASX said the Australian share market lifted by 7.9 per cent over the first half of 2009 but was down 26 per cent for the full financial year.
Although global economic outlook was still weakening, Australia’s relatively strong economic performance had underpinned capital market activity over recent months.
Easing credit markets in Australia and overseas in June reflected rising confidence that the worst of the global financial crisis was over.
The ASX said the Australian share market experienced average daily movements of 1.2 per cent during June – around the same levels of the past three months.
The total trading in cash markets – including equities, interest rates and warrant trades – for the 2009 financial year was $1.1 trillion, with an average daily value of $4.4 billion – both down 30 per cent on the prior corresponding period.
In June 2009, total cash market traded was $116.3 billion – down 13 per cent.
The daily average was $5.5 billion – down 17 per cent.