We consider ASX to be a natural monopoly due to its provision of essential infrastructure for Australia’s capital markets. Despite the challenging regulatory landscape, we believe the business is well safeguarded by its significant economic moat, which is supported by network effects and intangible assets. Additionally, we view the energy transition as an overlooked tailwind. We anticipate it will generate increased demand for resources, in which Australia possesses substantial natural endowments, leading to new listings and sustained revenue from trading and clearing activities.
MarketAnalysis
