Australian (ASX) Stock Market Forum

Capital raisings - Overall market effect?

prawn_86

Mod: Call me Dendrobranchiata
Joined
23 May 2007
Posts
6,637
Reactions
7
With every company and its dog doing a capital raising lately i was wondering what effect ASF members think it will have on the market?

Obviously it means a lot of money is coming in from the sidelines, so does this mean it might support the overall market? Or does it mean a lot of these instos will stag a profit and the market will be down or choppy?

Obviously i know there is no answer, just thoughts...
 
Obviously it means a lot of money is coming in from the sidelines, so does this mean it might support the overall market? Or does it mean a lot of these instos will stag a profit and the market will be down or choppy?

I wonder what will happen if / when dividends go down a little due to the dilution of shares?

Just another thought...
 
Well the technicals of a capital raising event won't change the price too much, but i think the sentiment of a company who is asking for money from investors will change.
 
Top