Australia's stock exchange reopens without incident after technical glitch

A man walks past the Australia stock exchange board in Sydney on June 24, 2016.
A man walks past the Australia stock exchange board in Sydney on June 24, 2016.PHOTO: AFP

SYDNEY (REUTERS) - The Australian Securities Exchange opened without any incident on Tuesday (Sept 20) after Australia's corporate watchdog said it will examine the technology glitch, which heavily disrupted the previous trading session.

"It is a welcome relief after yesterday's two disruptions," Credit Suisse equity strategist Damien Boey told Reuters after Tuesday's open.

The S&P/ASX 200 was down in early trade, but recovered to be almost unchanged at 0030 GMT, as traders look overseas for direction, ahead of crucial central bank meetings in the United States and Japan.

"Realistically, we were not really expecting the market to do much ahead of those things," Boey added.

A hardware failure at the ASX main database on Monday caused opening to be delayed by more than an hour and cut short afternoon trading by about 90 minutes.

Before Tuesday's open, the ASX confirmed in a statement that the issue was resolved.

Investors brushed off the incident with shares in ASX Ltd barely changed during early trade.

But Australia's corporate watchdog, the Australian Securities and Investments Commission (ASIC), which regulates the stock exchange, said it will closely examine Monday's shutdown.

"From time to time we see glitches in markets and we will work with the ASX to inquire into that," an ASIC spokesman said in a telephonic conversation.

Monday's shutdown was the most serious glitch for the exchange ever since the bourse shut for four hours in October 2011 due to a connectivity issue.

"It is important infrastructure for Australia and it is not acceptable that it goes down like that, really, that's the cold reality of the situation," said Andrew Green, chief executive, Stockbrokers Association of Australia.

"Brokers are rightly quite frustrated about it. They have lost income, they have lost three-quarters of a day's income and across the industry. That's a lot of money to a lot of people and that's frustrating."