S&P/ASX 200 Index (AXJO)

The Hindu Business Line  Feb 13  Comment 
Australian shares surged to a near seven-year peak on Friday as firmer commodity prices and news of a ceasefire in Ukraine bolstered the risk appetite.The S&P/ASX 200 index rose 2.3 per...
The Hindu Business Line  Feb 6  Comment 
Australian shares scaled a seven-year peak on Friday in a winning run stretching 12 straight sessions, underpinned by gains in the utilities and energy sectors.The S&P/ASX 200 index end...
The Hindu Business Line  Feb 3  Comment 
Australia’s benchmark S&P/ASX 200 surged to its highest level in almost seven years on Tuesday after the Reserve Bank of Australia cut the interest rates to a record low of 2.25 per cent.
MarketWatch  Jan 29  Comment 
Here are the latest trading levels for Asia's major stock markets: Tokyo (Nikkei Average ) down 1.1% (closed) ; Hong Kong (Hang Seng Index ) down 1.2% ; Shanghai (Shanghai Composite Index ) down 1.4% ; Sydney (S&P/ASX 200 ) up 0.3% (closed) ;...
The Hindu Business Line  Jan 21  Comment 
Australian and New Zealand shares bounced on Wednesday on hopes stimulus from central banks will bolster uneven global growth, with gains seen across all sectors.The S&P/ASX 200 index j...
The Hindu Business Line  Jan 20  Comment 
Australia’s share market ended flat on Tuesday with gains in the big four banks offset by losses in energy stocks as weak oil prices kept the sector under pressure.The S&P/ASX 200 index...
The Economic Times  Jan 16  Comment 
The S&P/ASX 200 index fell 0.6 percent or 32.2 points to 5,299.2 at the close of trade. It has fallen 3.04 percent this week, its biggest weekly drop since June 2013.
The Economic Times  Jan 15  Comment 
The S&P/ASX 200 index dropped 22.2 points, or 0.4 per cent, to 5,331.4 at the close of trade, after falling 1 per cent on Wednesday.
The Hindu Business Line  Jan 13  Comment 
Australian shares closed lower for a second day on Tuesday with energy firms and iron ore miners pressured by weak commodity prices.The benchmark S&P/ASX 200 index fell 0.3 per cent or 1...
The Hindu Business Line  Jan 9  Comment 
Australian shares rose for a second day on Friday as investors cheered solid gains on Wall Street and anticipated more upbeat news on the US economy due later in the day.The S&P/ASX 200...


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]



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]


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