S&P/ASX 200 Index (AXJO)

QUOTE AND NEWS
The Economic Times  May 20  Comment 
ASX 200 index ended 27.958 points, or 0.53 percent higher, at 5,351.300. NZX 50 index closed 6.240 points higher to finish the session at 6,909.860.
The Economic Times  May 18  Comment 
ASX 200 index dropped 39.7 points, or 0.7 percent, to 5,356.2. NZX 50 index rose 7.7 points, or 0.1 percent, to finish the session at 6,982.6, a record closing high.
The Economic Times  May 17  Comment 
ASX 200 index climbed to 5,395.90 points by the close of trade. The benchmark ended up 0.6 percent on Monday. NZX 50 index climbed 0.9 percent, or 60.7 points, to 6,974.9 points, having marked a new record high at 6,988.38.
The Economic Times  May 11  Comment 
Australia's S&P/ASX 200 index was up 0.6%, or 32.8 points, at 5,375.6 by 0410 GMT. Earlier, it reached 5,425.2, a high last seen in August.
The Economic Times  May 10  Comment 
ASX 200 index rose 22.1 points, or 0.42 percent, to close at 5,342.80. NZX 50 index ended 0.35 percent or 24.35 points higher, to finish the session at 6,909.40.
The Economic Times  May 6  Comment 
ASX 200 index climbed 0.25% to 5292.00 at the close of trade. The benchmark recovered after falling as much as 1.5 percent earlier in the session.
The Economic Times  May 4  Comment 
Local share price index futures pointed to a weaker start, having fallen 1.2 percent to 5,292.0, a 61.8-point discount to the underlying S&P/ASX 200 index close.
The Economic Times  Apr 29  Comment 
ASX 200 index rose 26.77 points to 5252.20 at the close of trade. NZX 50 index gained 0.45 percent or 30.60 points to finish the session at 6820.58
The Economic Times  Apr 28  Comment 
ASX 200 index gained 37.69 points to 5225.40 at the close of trade. NZX 50 index rose 0.59 percent or 39.58 points to finish the session at 6789.98.
The Economic Times  Apr 22  Comment 
The S&P/ASX 200 index was down about 0.2 percent, or 7.9 points, at 5,264.8 by midday, having earlier fallen as much as 0.9 percent.




 
TOP CONTRIBUTORS


S&P/ASX 200 Index is the investable benchmark for the Australian Securities Exchange. It measures the performance of the 200 largest index eligible stocks list on the exchange. The index is float-adjusted, covering approximately 80% of Australian equity market capitalization.

Weighting and Calculations

The index is calculated on the basis of the market capitalization method. Instead of using a company's outstanding shares it uses its float, or shares that are readily available for trading. The free-float method, therefore, does not include restricted stocks, such as those held by company insiders.

So the formula would be[1]:

Index level = Summation of (Price of any stock * Quantity of the stock)/ Index Divisor.

While one might track this portfolio’s value in dollar terms, it would probably be an unwieldy number – for example, the S&P 500 market value is roughly $11.8 trillion. Rather than deal with ten or more digits, the figure is scaled to a more easily handled number, currently around 1250. Dividing the portfolio market value by a factor, usually called the Index divisor, does the scaling.

Continuity in index values is maintained by adjusting the divisor for all changes in the constituents’ share capital after the base date. This includes additions and deletions to the index, rights issues, share buybacks and issuances, and spin-offs. The divisor’s time series is, in effect, a chronological summary of all changes affecting the base capital of the index. The divisor is adjusted such that the index value at an instant just prior to a change in base capital equals the index value at an instant immediately following that change[2]

Composition

Eligibility

To be eligible for inclusion in the ASX 200 Index[3] :

  • Market Capitalization: A stock’s weight in the index is determined by the float-adjusted market capitalization of the stock. This is a function of current index shares, the latest available stock price and the Investable weight factor (IWF). The IWF represents the float-adjusted portion of a stock’s equity capital. Therefore any strategic holdings that are classified as either corporate, private or government holdings reduce the IWF which, in turn, results in a reduction in the float-adjusted market capital. Shares owned by founders, directors of the company, trusts, venture capitalists and other companies are also excluded. These are also deemed strategic holders, and are considered long-term holders of a stock’s equity. Any strategic shareholdings that are greater than 5% of total issued shares are excluded from the relevant float.
  • Liquidity: The trading volume in terms of dollar value and the number of transactions must exceed at least 0.025% of the sum of all eligible securities' trading volume. To ensure that no single company dominates trading, they are capped at a maximum of 15% for value, volume and transactions.
  • Listing: Only stocks listed on the Australian Stock Exchange will be considered for inclusion in any of the S&P/ASX indices.

Sector Breakdown

Image: Asx_sector_breakdown.jpg [4]

References

  1. Index Maths Methodology
  2. Index Maths Methodology
  3. ASX Methodology
  4. S&P ASX 200 description
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