S&P/ASX 200 Index (AXJO)

QUOTE AND NEWS
newratings.com  Nov 28  Comment 
CANBERA (dpa-AFX) - Asian stock markets are mostly higher on Monday following the modest gains on Wall Street Friday, though weakness in crude oil prices weighed on energy stocks. The U.S. dollar retreated against its major peers, including the...
WA Business News  Nov 28  Comment 
The Australian share market has kicked off the week lower, hurt by energy and resource companies. The benchmark S&P/ASX 200 index was down 0.2 per cent at 1021 AEDT, despite gains across major equity markets in the US, Europe and Asia late last...
WA Business News  Nov 24  Comment 
The Australian share market is higher in early trade as the market rises broadly in line with Wall Street gains in the US session. The benchmark S&P/ASX 200 index was up 0.20 per cent at 1030 AEDT, with most sectors lifting apart from resources...
WA Business News  Nov 23  Comment 
The Australian share market has opened higher in the wake of a positive lead from US markets and strength in prices for base metals. The benchmark S&P/ASX 200 index was up around 0.45 per cent at 1033 AEDT, with the big banks and major miners...
WA Business News  Nov 22  Comment 
The Australian share market has opened sharply higher on the back of surging oil prices and a lift in base metal prices. The benchmark S&P/ASX 200 index was up 0.82 per cent at 1030 AEDT with most sectors in positive territory.
The Economic Times  Nov 21  Comment 
The ASX 200 Healthcare index fell 1.3 per cent with biotherapeutics company CSL Ltd dropping 0.7 per cent.
The Economic Times  Nov 18  Comment 
The S&P/ASX 200 index ended 0.3 per cent, or 20.862 points higher, to 5,259.4 at the close of trade. The benchmark closed down 0.2 per cent for the week.
The Economic Times  Nov 18  Comment 
The Shanghai Composite slipped 0.1 per cent to 3,206.64 while Australia's S&P/ASX 200 crept up 0.2 per cent to 5,347.30.
The Economic Times  Nov 16  Comment 
The S&P/ASX 200 index eked out marginal gains to settle 0.03 per cent, or 1.49 points, higher at 5,327.7.
WA Business News  Nov 16  Comment 
The Australian share market has opened higher on the back rising energy shares and with investors seeming slightly more positive about a Trump presidency. The benchmark S&P/ASX 200 index was 0.36 per cent higher at 1020 AEDT, with gains led by...




 
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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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