Why the ASX is missing out on billions in super
What if I told you Australia is on track to have the second-largest pension market in the world-bigger than the UK and Canada, trailing only the US?
With more than $4.1 trillion in super and growing, this should be a golden era for our stock market.
But here's the problem: nearly $800 billion of our super is invested in international shares, compared to just $636 billion in Aussie stocks. That's money leaving our shores instead of fuelling local businesses, innovation, and jobs.
International diversification looks good on paper, but what's the trade-off?
The ASX is missing out on billions-capital that could drive stronger valuations, support more IPOs, and fuel broader economic growth.
The upcoming increase in the Superannuation Guarantee to 12% by July 2025 will expand the investment pool even further, creating an even greater opportunity to put more of that money to work at home.
Even ASIC Chair Joe Longo has raised concerns about the shrinking number of companies listing on the ASX. If more super stayed local, it would give businesses a stronger reason to go public, boosting the market and giving everyday investors better opportunities.
Right now, ASIC is inviting market participants to submit ideas by April to address these challenges.
This is a prime chance to push for policies that direct more super into Australian investments.
Super isn't just a retirement plan-it's a national asset so let's stop handing billions to global markets and start backing our own future.
What are the best and worst-performing sectors this week?
The best-performing sectors include Utilities, up more than 5%, followed by Financials, up more than 2% and Consumer Staples, up more than 1.5%.
The worst-performing sectors include Information Technology, down more than 9%, followed by Real Estate, down more than 4% and Materials, down more than 2.5%.
The best-performing stocks in the ASX top 100 include APA Group, up more than 14%, followed by NIB Holdings, up more than 13% and Medibank Private, up more than 11%.
The worst-performing stocks include Viva Energy, down more than 27%, followed by Wisetech Global, down more than 22% and Reece Limited, down more than 21%.
What's next for the Australian stock market?
Sellers remained in control this week as the All Ordinaries extended its slide, dropping more than 1%. The week started with a glimmer of hope as buyers held the index near 8570 on Monday, but selling pressure soon took over, driving the market below the critical 8500 level by Thursday.
This move also confirms the breakdown of the uptrend line that had been intact since November 2023.
That said, the All Ords isn't out of the fight just yet. Volatility tends to pick up during reporting season, so it's important to allow for more movement around key technical levels.
If selling continues next week, keep an eye on 8400, a level that has been tested three times since November 2024-each time attracting strong buying and leading to new all-time highs.
For now, patience is key. Reporting season often brings knee-jerk reactions, making it crucial to let the dust settle. If you have room in your portfolio, this pullback could present an opportunity to pick up quality stocks that have been unfairly sold off.
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