BellPotter Marketing

The rebound in domestic equities continued in May as the All Ordinaries rose towards 6,000. Whilst the increase in the ASX All Ordinaries Accumulation Index and the S&P/ASX 200 Accumulation Index was not as substantial as previous month, they returned a solid 5.0% and 4.4%, respectively.

The market capitalisation of ASX LICs) and LITs dropped by 23.9% to $40.5bn over the first quarter of 2020. The volatility in the market and subsequent large equity sell-off resulted in no new listings in the sector.

ETF trading has increased significantly over the past 3 months, with average daily value traded in March and April exceeding $770m and $460m, respectively. Despite the sell-off that has occurred in 2020, funds have stayed in the ETFs with each month recording positive net inflows.