Should you buy ASX shares? Here is why the bourse thinks you should

Nick Sundich Nick Sundich, June 6, 2023

When we titled this article ‘Should you buy ASX shares?’ we are not talking about ASX stocks generally, but shares in the bourse itself. Yes, the ASX (ASX:ASX) is a listed company in its own right. And today (Tuesday June 6 2023) it held an Investor Day where it put forward arguments as to why investors might consider buying ASX shares.

 

Do you need solid trading & investment ideas on ASX?

 

Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

Should you buy ASX shares?

The bourse has a near-monopoly position in the Australian share market, at least for now. It is the world’s 8th largest securities exchange and has $2.8tn worth of companies listed there.

And it has told investors that it has several strong tailwinds that present opportunities. It noted the continued growing pool of capital with a 20-year growth rate of 11.3% – thanks to compulsory superannuation. And given that exchanges are data rich, there’s opportunity to leverage data across business models, asset classes, products and services.

 

But expectations are high

However, the ASX is under high scrutiny because of its inability to deliver the long-promised replacement to its CHESS system. Having previously anticipated it could go live this year (nearly 3 decades after CHESS was implemented and nearly 8 years of work), it now anticipates keeping it until the early 2030s. It has faced scrutiny from investors, as well as from ASIC.

Nonetheless, you may want to buy ASX shares. It told shareholders it had the roadmap defined and had not canned the project completely. And in the interim, shareholders could still look forward to dividends and growing revenues (as it remained a popular exchange for new listings), even though it would cut the payout ratio from a fixed 90% of EPS to a 80-90% range.

 

Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

With price targets, buy ranges, stop loss levels and Sell alerts too.

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

There’s no credit card needed – the trial will expire automatically.

 

 

Blog Categories

Recent Posts

Toubani Resources

Toubani Resources (ASX:TRE) gets ready for the big time in Mali

Toubani Resources (ASX:TRE) is another aspiring gold producer. What’s not to love about an aspiring gold producer right now? Its…

Capricorn Metals

Capricorn Metals (ASX:CMM): Its sequel gold mine will be even better than the original

Capricorn Metals (ASX:CMM) is one of several gold miners on the ASX that has slid under the radar of many…

Price to Book

Here’s why the Price to Book (P/B) multiple is so important to know if you own shares in the Big 4 Banks

If you own shares ASX Bank stocks (especially the big Four), you need to know about the P/B multiple (Price…