What makes share prices move?
The price of a share is not fixed. It moves up and down every day depending on what buyers and sellers are willing to pay. At the heart of this is supply and demand. If more people want to buy a share than sell it, the price tends to rise. If more people want to sell than buy, the price tends to fall.
Earnings reports are another major influence. Every few months companies release updates on how much money they are making and/or how their business is performing. IF a company reports stronger profits than expected, investors often rush to buy, pushing the price up. IF profits fall short or the outlook looks weak, the price can drop as people sell.
Market sentiment also plays a big role. This is how investors feel about the economy, interest rates or global events. Sometimes a share price can move not because of what the company itself has down, but because of the overall mood of the market. Positive news can lift prices across the board, while uncertainty or fear can pull them down.
In the end, share prices move because investors are constantly reacting to information, expectations and feelings. It’s the balance of buyers and sellers, shaped by company results and market sentiment, that creates the day-to-day ups and downs we see on the ASX.