ASX shares gain 9% as exchange flags strongest listings pipeline
Australia’s main stock exchange operator posted a surge in new listings and forecast robust demand, providing a rare boost for investors awaiting a strategic overhaul from its incoming chief executive.
ASX Ltd shares climbed 9 per cent, marking their best daily performance since March 2020. The rally followed the exchange operator's report of a significant rebound in new listings ahead of a major leadership transition.
The operator added 100 new entities to its boards in the 12 months through June, representing a 45 per cent increase from the previous year. Interim chief executive Darren Yip stated: “Our new listings pipeline is the strongest it has been in several years.”
Yip added that “recent new listings data bears out a more confident posture and a return to higher levels of activity.” This resurgence in equity issuance is underscored by Glencore Plc’s plans for an Australian listing, highlighting the market's renewed attractiveness to global firms.
The positive equity capital markets backdrop provides a foundation for incoming chief executive Anthony Attia, an Euronext NV veteran who assumes the role on September 1. He will inherit a company whose stock has fallen 36 per cent from its 2021 peak amid technical failures and regulatory scrutiny.
Despite the buoyant listing metrics, full-year net income slipped 3.5 per cent to A$484.9 million ($342 million), missing the A$509.3 million average analyst estimate. Total expenses surged 21 per cent while revenue grew 13 per cent, prompting Citigroup Inc. analyst Nigel Pittaway to note: “We see this as a sound result.” He added: “This aside, we await for firmer strategic directions from the new CEO.”
Management reaffirmed capital spending guidance of up to A$200 million for the current financial year and projected outlays of up to A$190 million for the year starting July 2027. Yip described the period as a reset, stating that “meaningful progress has been made in our transformation and there is more to do.”
A critical focus for the exchange remains a delayed upgrade to its clearing and settlement systems, which is now expected to be completed in 2029 following a major outage in December 2024. Meanwhile, ASX declared a lower final dividend of A$1.047 to help fund a A$150 million capital charge imposed by the national financial watchdog. The operator also faces looming competitive pressure as TMX Group Ltd.’s acquisition of Cboe Australia threatens its current dominance in trading turnover.
