Margin calls in the December 2008 quarter soared to a fresh high, data published by the Reserve Bank of Australia (RBA) showed.
The average number of margin calls per day rose to 9.77 per day per 1000 clients in the three months, more than doubling from the September 2008 quarter and surging 12-fold from the December 2007 quarter.
The record number of margin calls was not surprising given the December quarter saw the S&P/ASX 200 shed 19.09 per cent, Suncorp Advice Solutions head of research Michael Furey said.
"Less than 1 per cent of margin lending clients per day receiving margin calls during one of the most turbulent times in equity market history is possibly a good result that indicates conservative gearing levels by most," he said.
The previous record for margin calls was during the September 2001 quarter, when the average number stood at 8.04 margin calls per day per 1000 clients, according to the data.
The aggregate value of outstanding loans that are backed by approved securities, usually Australian equities and managed funds, shrunk to $21.093 billion at the end of December 2008, down 44.15 per cent from the December 2007 record of $37.76 billion.
Margin lending accounts reached a record level in 2008, peaking at 206,000 in the June quarter and falling to 205,000 by the end of the year. There were 200,000 margin lending accounts at the end of December 2007.
"Whilst many may regard growth in numbers as a little surprising, there doesn't appear to be strong evidence that loans are being drawn down to invest ... perhaps many are getting ready to invest whilst stock prices are down and interest rates are decreasing," Furey said.
