Macquarie Group Limited (MQG) Dipped -0.31% on Jun 15

June 14, 2018 - By Vivian Park

Shares of Macquarie Group Limited (ASX:MQG) last traded at 113.45, representing a move of -0.31%, or -0.35 per share, on volume of 603,888 shares. After opening the trading day at 113.3, shares of Macquarie Group Limited traded in a close range. Macquarie Group Limited currently has a total float of 322.64 million shares and on average sees 816,397 shares exchange hands each day. The stock now has a 52-week low of 82.28 and high of 117.07.

Why More Investors Are Looking Into S&P/ASX 200 Stocks

Australia takes pride with good corporate governance, which is why it is one of Asia’s fastest growing economies today. A nation’s good corporate governance improves its growth potentials as it lures domestic and foreign investors alike to bank on its equity market. CG Watch, which publishes ranks top Asian markets in terms of corporate governance biannually, has included Australia in its recent list.

The Australian Equity Market

Macquarie Group Limited is traded on the The Australian Securities Exchange (ASX) one of the biggest stock exchanges in Asia. And Macquarie Group Limited also included in its list. As of May 2014, over 2,000 companies are listed on the ASX, boasting with a total market capitalization of almost A$2 trillion.

One of the benchmark indices in Australia is the S&P/ASX 200, which tracks as much as 200 most actively traded stocks on the ASX.

The S&P/ASX 200

The S&P/ASX 200 carries on from All Ordinaries, which was formed in January 1980 to serve as the main Australian benchmark index, when it was established in April 2000. It had started at 3,133.30 points.

Continuing from the history of All Ordinaries, the S&P/ASX 200 had hit its all-time low of 1,358.50 points in November 1992. Eventually, it was able to recover, hitting its all-time high of 6,828.70 points during the same month in 2007. In February of that year, the S&P/ASX 200 had first reached the 6,000 mark. Investors had flocked the ASX that time, seeking for safe-haven assets in preparation for the Global Financial Crisis of 2008 amid early signs pointing out to its onslaught. Australia have always boasted with a compelling borrowing environment, which is why investors have always relied to its economy for valuable investment growth.

The S&P/ASX 200 is rebalanced quarterly by a panel of five members, the Index Committee. The review happens on the 16th of every quarter-end month— March, June, September, and December. Up to 200 companies make up the S&P/ASX, depending on their liquidity, market capitalization, and other factors. Macquarie Group Limited liquidity gives it an ability to perform the obligations with ease.

The S&P/ASX 200 is a free-float market-capitalization-weighted index, which means that stocks are evaluated based on their respective market capitalizations with respect to their share prices. Given this, stocks held by venture capitalists and the government are excluded since they are not often traded on the ASX.

When the components of the S&P/ASX 200 were last reviewed on September 16, six stocks had been removed while six new stocks had been included. Roughly 40% of the index is composed of the financial sector.

The S&P/ASX 200 represents about 80% of the total market valuation on the ASX, which is why it is an important indicator of the Australian economy. Similarly, it has a huge impact on the entire Asian economy.

Investors can surely benefit from the low interest rates and a healthy equity market in Australia. Macquarie Group Limited has relatively good liquidity. That being said, investing in ASX stocks is highly recommended for those who are seeking higher near-term and long-term returns alike. Investors prefer the companies like Macquarie Group Limited where they can easily see its liquidity ratio.

More notable recent Macquarie Group Limited (ASX:MQG) news were published by: Fool.com.Au which released: “Why Macquarie Group Ltd (ASX:MQG) is betting $9 billion on this global trend” on May 29, 2018, also Fool.com.Au with their article: “Macquarie Group Ltd (ASX:MQG) recommends buying these EOFY bargains” published on May 30, 2018, Fool.com.Au published: “3 S&P/ASX 200 stocks the “buy on a low” mentality doesn’t apply to” on June 12, 2018. More interesting news about Macquarie Group Limited (ASX:MQG) were released by: Fool.com.Au and their article: “Why the Hub24 Ltd (ASX: HUB) share price is rising today” published on June 13, 2018 as well as Fool.com.Au‘s news article titled: “Why the Kogan.com Ltd (ASX:KGN) share price plunged 10% today” with publication date: June 13, 2018.

Macquarie Group Limited provides diversified financial services in the Americas, Australia, Europe, the Middle East, Africa, and the Asia Pacific. The company has market cap of $36.60 billion. The firm operates through Macquarie Asset Management , Corporate and Asset Finance (CAF), Banking and Financial Services (BFS), Commodities and Global Markets (CGM), and Macquarie Capital divisions. It has a 16.2 P/E ratio. The company's MAM segment specializes in infrastructure, real estate, agriculture, and energy via public and private funds, co-investments, partnerships, and separately managed accounts; offers securities investment management solutions across asset classes, such as fixed income, currencies, equities, infrastructure securities, hedge funds, and multi-asset allocation solutions; and provides investment solutions comprising fund linked products, capital protected investments, and agriculture investment solutions, as well as infrastructure debt funds management.

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By1 Vivian Park

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