The Australian Securities Exchange (ASX) has ramped up its monitoring of listed companies, requesting that the largest among them explain significant share price movements once every nine days in 2025. This marks a doubling of the rate compared to the previous year, following one of the most turbulent results seasons in recent memory. So far this year, 28 companies with a market capitalisation exceeding $1 billion have received an ‘aware letter’ from the ASX, compared to just 16 last year.
The increase in share price volatility has been attributed to structural changes within the market, including the growing influence of hedge funds and quantitative trading strategies that react swiftly to company results. JPMorgan’s head of equity research, Jason Steed, noted that this results season has been the most volatile on record, surpassing even the fluctuations seen during the global financial crisis and the COVID-19 pandemic.
‘Aware letters’ are issued by the ASX in response to unexplained or unjustified share price swings, aiming to ensure that investors are fully informed and that companies are adhering to listing and continuous disclosure rules. While such letters were once considered a significant red flag, Steed suggests they are now viewed with less severity, as the market has become more sensitive to earnings trajectories. Woolworths and Brambles are among the companies that have recently received these letters.
This heightened scrutiny comes as the ASX itself faces a number of internal challenges, including personnel changes and regulatory inquiries. The exchange is currently under investigation by the corporate regulator regarding its risk management and culture, following past incidents such as an equity market outage in 2020 and issues related to the upgrade of its settlement system. The ASX operates Australia’s primary stock exchange and provides clearing and settlement services for the country’s financial markets.
