Australian Financial Markets Analysis

BUSINESS FINANCE

ABSTRACT
The following report present the information regarding the different investment options
such as bond, securities, shares, etc. to the overseas investor to take efficient and effective
decision of investment in Australian market. The market index, market capitalization, companies
official sites and yahoo finance provides the information regarding the financial statements. It
provides the historical data and information regarding the metal and mining industry to
recommend the overseas investor to invest in Australian market and gain the advantage of
investment. Market capitalization provides information regarding the worth of assets which are
determined by the stock exchange market of Australia.

Table of Contents
ABSTRACT.....................................................................................................................................2
1. INTRODUCTION.......................................................................................................................4
2. ANALYSIS OF AUSTRALIAN FINANCIAL MARKET.........................................................4
2.1. Analysis of Australian financial market structure................................................................4
2.2. Identification of the sources of financial services and financial information......................5
2.3. Popular tools of capital budgeting........................................................................................6
2.4 Analysis of Australian Bond market.....................................................................................7
2.5. Analysis of Australian share market....................................................................................9
2.6 Identifying and recommending of potential industry for financial investment...................11
3. CONCLUSION..........................................................................................................................12
REFERENCES..............................................................................................................................13
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1. INTRODUCTION
The business finance provides the information of regarding the stock, shares, bond and
securities of different companies. The report highlights the market structure of Australia such as
the different sector, market regulators, types of markets and the financial institutions. The
investor can get the information from the different financial statements, websites, stock
exchange, index etc. this helps to provide the information regarding the market value, share
price, interest rate, coupon rate, inflation rate etc. report also explains the tools of capital
budgeting such as NPV, ARR, IRR and payback period to take the effective and efficient
decision for investment. It also presents the different advantages and disadvantages of
investment criterion. The report highlights the Australian Bond market and provide the brief
knowledge regarding the ways of treatment of shares and calculation of index. It also highlights
the historical movement graph and there trend in last 3 years. The All-Ordinaries index is the
oldest index of Australia which trade 500 companies share in the market. It presents the market
capitalization of metal and mining industry and their historical data to analyse the market trend
in last 1 year.
2. ANALYSIS OF AUSTRALIAN FINANCIAL MARKET
2.1. Analysis of Australian financial market structure.
Market sectors: Australian market is divided in different sectors such as financial
market, material, health care, industries, real estate, energy, utilities, consumer staples,
telecommunication services, service industry, consumer Discretionary and information
technology. Each market sector hold different percentage of the market (Xu, Liu and Huang,
2015). The service industry comprises 70% of the GDP of Australian market.
Market regulators: There are three regulatory authorities or agencies in Australia such
as Australia securities and investment commission which are responsible for consumer
protection and market integrity, Australia Prudential Regulation Authority which are accountable
for supervision of prudential and Reserve Bank of Australia which regulate the monitory system,
market stability and payment system regulations (Australia's Financial Regulatory Framework,
2002).
Types of Market: There are different types of market such as foreign exchange market,
debt market, derivatives market, equity market, over the counter market or bond market in
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