Shares of Paringa Resources Limited (ASX:PNL) closed at 0.13 yesterday. Paringa Resources Limited currently has a total float of 458.22M shares and on average sees 511,454 shares exchange hands each day. The stock now has a 52-week low of 0.125 and high of 0.3657.
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
Paringa Resources Limited is traded on the The Australian Securities Exchange (ASX) one of the biggest stock exchanges in Asia. And Paringa Resources 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. Paringa Resources 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. Paringa Resources 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 Paringa Resources Limited where they can easily see its liquidity ratio.
More notable recent Paringa Resources Limited (ASX:PNL) news were published by: Globenewswire.com which released: “Paringa Appoints U.S. Based CEO & MD – GlobeNewswire” on December 11, 2018, also Globenewswire.com with their article: “Paringa Intercepts the Kentucky Number 9 Coal Seam With the Poplar Grove Slope – GlobeNewswire” published on December 19, 2018, Globenewswire.com published: “Paringa Signs Third Coal Sales Agreement With a Major Utility for Up to 1.4 Million Tons – GlobeNewswire” on January 31, 2019. More interesting news about Paringa Resources Limited (ASX:PNL) were released by: Fool.com.Au and their article: “These 2 small mining stocks are about to start production, and they look dirt cheap – Motley Fool Australia” published on August 03, 2018 as well as Prnewswire.com‘s news article titled: “Discovery Of Additional Major Coal Seam Transforms Poplar Grove Mine – PR Newswire” with publication date: October 19, 2016.
Paringa Resources Limited, together with its subsidiaries, engages in the exploration and development of resource projects. The company has market cap of $59.57 million. The firm holds interests in the Buck Creek coal mines complex, which include the Poplar Grove Mine and the Cypress Mine located in the Illinois coal basin in western Kentucky. It currently has negative earnings. As of June 30, 2017, it owned 39,511 gross acres of coal leases in Kentucky, the United States.
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