Foreign Capital Exiting The ASX?

[Slipperz]

Re the recent bearish sentiment on the ASX I think the reasons are twofold.

1. Currency arbitrage. Foreign fund managers are selling up and taking profit in AUD at a raging premium to other currencies.

2. Sovereign risk. The current Australian government could possibly be very negatively perceived overseas after their attempts at wealth distribution by trying to impose the mining tax and now their determination to introduce a carbon tax.

41% of the ASX is held by foreign investors.

http://www.asxgroup.com.au/media/PDFs/international_listings_on_asx_brochure.pdf

 

[G-Zilla]

its an interesting thought... wouldnt that also mean we see the AUD go down as fund managers repatriate their funds home?

It could be a sign of things to come although have only seen the AUDUSD steamroll on, not too sure about the other AUD currency crosses though

 

[warennie]

Id think we'd be seeing much more volume being traded if this was the case. Instead I think its more of a revaluing of the ASX due to the high AUD and it's implications for exporters.

 

[Slipperz]

Id think we'd be seeing much more volume being traded if this was the case. Instead I think its more of a revaluing of the ASX due to the high AUD and it's implications for exporters.

Fair point. I went hunting for the daily value of trades on the ASX and came up empty handed. ASX lists the volume but not the value.

Interesting to think only 16% of the ASX is in the hands of private investors in Australia. We really are at the mercy of the big boys any day of the week. :aus:

 

[warennie]

Fair point. I went hunting for the daily value of trades on the ASX and came up empty handed. ASX lists the volume but not the value.

Interesting to think only 16% of the ASX is in the hands of private investors in Australia. We really are at the mercy of the big boys any day of the week. :aus:

Is there anywhere that measures volume for index's? That'd be pretty handy.