It started as a joke. But 25 years on, the Australian Securities Exchange will this Sunday mark the anniversary of when the six state exchanges merged to form the national bourse on April Fools' Day.
Since then around $750 billion has been raised by companies listed on the ASX, 220 companies have continued to be listed under the same name, 800 million cash equity trades have taken place on the exchange and the market capitalisation on the bourse has increased seven-fold to $1.3 trillion.
Among the snippets of trivia provided by the ASX yesterday was the fact that a company only needed a market capitalisation of around $2.5 billion to make it into the top 10 stocks in 1987. The not-so-fun fact was that Fairfax Media (publisher of the Herald) was among one of those original top 10 stocks.
Fairfax's weighting now ranks 88th on the ASX with its market capitalisation around $1.7 billion. ASX spokesman Matthew Gibbs was tight-lipped when asked to explain what significance April Fools' Day held for the exchange.
"What a wonderful punchline it's delivered for Australia's economic success," was all he said.
STOCK GAGS
The ASX was also coy about what festivities it had planned for April Fools' Day. One idea could be for ASX chief executive Elmer Funke "Funkmeister" Kupper to announce a "merger of equals" with the Mongolian Stock Exchange.
Such an April Fools' Day joke on Sunday could actually trick people given operatives from the Ulan Bator exchange were in Sydney yesterday to attend the general assembly of the 19-member Asian and Oceanian Stock Exchanges Federation. It could also be believable given the ASX only last year was playing along the with idea of handing over control to the smaller Singapore Exchange in another "merger of equals".
Another idea could be for Kupper - on drums and vocals - to perform a version of the Bee Gees tune I Started a Joke. "I started a joke, which started the whole world crying, but I didn't see that the joke was on me, oh no," goes the song.
FIRST SALVOS
The coal industry is clearly doing God's work. Whitehaven Coal managing director Tony Haggarty and Eureka Capital Partners chairman Roger Massy-Greene, who each made a squillion selling their stakes in Excel Coal to Peabody Energy in 2006, again helped filled the collection tray at yesterday's launch of the Salvation Army's Sydney Red Shield Appeal, which was held at the Four Seasons Hotel.
Massy-Greene, who also chairs the appeal, lauded his old chum who matched his donation at last year's appeal.
"Tony is the most capable businessman and leader to work with," gushed Massy-Greene as he welcomed the $100,000 cheque from his old buddy.
Massy-Greene and his QBE chairwoman wife Belinda Hutchison signed over two $50,000 cheques. One of which was to help fund a Salvo "safe-house" used to help victims of human trafficking.
Haggarty's old housemate from his days digging holes in Broken Hill and now Qantas chairman Leigh Clifford flew up from Melbourne as guest speaker at the launch.
Clifford talked of the importance of being philanthropic and even noted his skills in raising donations as the chairman of the Murdoch Children's Research Institute.
Clifford noted how he managed a $10 million donation from Rupert Murdoch and his family on a trip to New York, after reminding the News Corp boss how the Murdoch family name adorned the entrance to the centre. "It is very interesting to look at the Murdoch family," he mused, noting their support for the institute.
This year's Red Shield Appeal hopes to raise $81.5 million across Australia, of which the Salvos hope to raise $15 million in Sydney.
Among yesterday's attendees was Salvation Army Advisory Board and Fairfax Media chairman Roger Corbett and former Wallabies captain and fund manager Nick Farr-Jones (who was MC). Other business types on the guest list included Transfield Holdings' joint-managing director Luca Belgiorno-Nettis, former CEOs Union (aka Business Council of Australia) president Graham Bradley, former Macquarie managing director Tony Berg, former Fairfax chairman John B. Fairfax, Goodman director Anne Keating and fund manager Robert Maple-Brown.
SLOW BURN
Ouch. The gloves are off at coal explorer Carabella Resources where 88 per cent of proxy-holders voted yesterday to block the issue of 1 million 25? options to former managing director Mitch Jakeman, who quit last August citing irreconcilable differences with the board.
The options were to be issued once Carabella found measured coal resources of between 25 million to 50 million tonnes, and in November Carabella confirmed there were 41.5 million tonnes at Grosvenor West in central Queensland.
At yesterday's closing price of $1.19 the options would have been worth $940,000. But before Jakeman quit, the shares were trading at $2.10 and the options would have been worth $1.85 million - and there was apparently more upside if resource estimates got higher.
Jakeman told CBD yesterday he was "very disappointed indeed" and the vote showed brokers Helmsec, which underwrote the Carabella float, had "undue influence at the board level".
Jakeman, who is now consulting to County Coal, has been seeing a solicitor ahead of yesterday's shareholder meeting and said: "If they haven't met their continuous disclosure obligations, then we'll see." Watching with interest will be Fairfax Media's largest shareholder, Gina Rinehart, who snapped up 0.74 per cent of Carabella late last year.
Got a tip? srochfort@fairfax.com.au
Frequently Asked Questions about this Article…
What is the ASX 25th anniversary and why does it matter to everyday investors?
The ASX 25th anniversary marks 25 years since the six state exchanges merged to form the national Australian Securities Exchange on April Fools’ Day. The article notes the bourse has since seen around $750 billion raised by listed companies, about 800 million cash equity trades, and market capitalisation grow seven-fold to roughly $1.3 trillion — showing how Australia’s capital markets have deepened and become more important for investors seeking access to capital-raising, liquidity and diversified opportunities.
What key ASX market statistics from the article should investors know?
Important numbers highlighted include roughly $750 billion raised by ASX-listed companies since the merger, 220 companies that have kept the same name, about 800 million cash equity trades, and a market capitalisation increase to about $1.3 trillion (a seven-fold rise). These figures show greater market scale and trading activity compared with 25 years ago.
Why was the ASX merger held on April Fools’ Day and does the timing matter to investors?
The national exchange was formed on April Fools’ Day and the article notes the date has become a bit of a joke/quirky anniversary line for the ASX. For investors, the date is just trivia — what matters is the structural change the merger delivered: a single national bourse with deeper capital markets and greater liquidity.
How has Fairfax Media’s position on the ASX changed since 1987 and what should investors learn from that?
The article points out that in 1987 a company only needed about $2.5 billion market cap to be in the ASX top 10, and Fairfax Media was among those top 10 then. Today Fairfax ranks 88th with a market cap around $1.7 billion. The takeaway for investors is that market leadership and company rankings can shift dramatically over decades, underscoring the value of diversification and periodic portfolio review.
What charitable and corporate giving activity was reported and why might investors care about it?
Senior figures linked to the coal sector and corporate Australia — including Whitehaven Coal’s Tony Haggarty and Eureka Capital’s Roger Massy‑Greene — donated large cheques (for example a matching $100,000 donation) at the Salvation Army Red Shield Appeal launch. The appeal aims to raise $81.5 million nationally and $15 million in Sydney. Investors may view such philanthropy as part of broader corporate social responsibility and governance considerations when assessing reputational and ESG factors.
What happened at Carabella Resources’ shareholder meeting and what does it mean for small investors?
Shareholders voted — about 88% of proxies — to block the issue of 1 million 25‑cent options to former managing director Mitch Jakeman. Those options were contingent on finding measured coal resources of 25–50 million tonnes (Carabella reported 41.5 million tonnes at Grosvenor West). The blocked issuance highlights how shareholders can influence executive remuneration and option grants, which can materially affect dilution and potential value transfer from existing holders.
Why did Mitch Jakeman react strongly to the Carabella vote and could this affect investors?
Jakeman said he was very disappointed, complained about alleged undue broker influence (naming Helmsec) and indicated he had sought legal advice about potential continuous disclosure breaches. For investors, disputes involving executives, option grants and disclosure practices can create uncertainty and governance risk — issues worth monitoring in company announcements and ASX disclosures.
The article jokes about mergers — could a merger with another exchange affect ASX investors?
The article mentions playful ideas — a gag about a merger with the Mongolian Stock Exchange and the ASX previously entertained a 'merger of equals' idea with the Singapore Exchange. While the items were largely tongue‑in‑cheek in this piece, any real cross‑border merger or change in control of an exchange would have potential implications for governance, listing rules, liquidity and fees — all of which are relevant to investors and would be announced publicly if serious proposals emerged.
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