Newcrest Mining Limited (NCM) Increased 1.9% on Jun 15

June 15, 2018 - By Winifred Garcia

Shares of Newcrest Mining Limited (ASX:NCM) last traded at 20.89, representing a move of 1.9%, or 0.39 per share, on volume of 1.01 million shares. After opening the trading day at 20.68, shares of Newcrest Mining Limited traded in a close range. Newcrest Mining Limited currently has a total float of 766.49 million shares and on average sees 2.30 million shares exchange hands each day. The stock now has a 52-week low of 19.31 and high of 24.27.

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

Newcrest Mining Limited is traded on the The Australian Securities Exchange (ASX) one of the biggest stock exchanges in Asia. And Newcrest Mining 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. Newcrest Mining 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. Newcrest Mining 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 Newcrest Mining Limited where they can easily see its liquidity ratio.

More recent Newcrest Mining Limited (ASX:NCM) news were published by: Fool.com.Au which released: “5 things to watch on the ASX on Tuesday” on June 11, 2018. Also Fool.com.Au published the news titled: “5 things to watch on the ASX on Thursday” on May 23, 2018. Fool.ca‘s news article titled: “1 High-Quality Gold Mining Junior That Offers Considerable Upside” with publication date: May 17, 2018 was also an interesting one.

Newcrest Mining Limited, together with its subsidiaries, engages in the exploration, mine development, mine operation, and the sale of gold and gold/copper concentrates in Australia, Southeast Asia, and West Africa. The company has market cap of $16.01 billion. It is also involved in the exploration of silver deposits. It has a 73.56 P/E ratio. The firm primarily owns and operates mines and projects located in Cadia and Telfer, Australia; Lihir, Papua New Guinea; Gosowong, Indonesia; Bonikro, Cote d'Ivoire in West Africa; and other projects.

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