S&P/ASX 200 Index (AXJO)

The Economic Times  Aug 31  Comment 
The S&P/ASX 200 index closed 0.5 per cent lower at 6,319.5, but added 1.2 per cent for the week.
The Economic Times  Aug 28  Comment 
The S&P/ASX 200 index gained 0.6 per cent to 6,304.7 points at the close of trade.
The Economic Times  Aug 24  Comment 
​ The S&P/ASX 200 index rose 0.05 per cent to 6,247.3 at the close of trade, having risen as much as 0.5 per cent earlier in the session.
The Economic Times  Aug 20  Comment 
The S&P/ASX 200 index added 0.1 per cent to settle at 6,345 on Monday.
The Economic Times  Aug 10  Comment 
The S&P/ASX 200 index closed down 0.3 per cent but managed to end the week 0.7 per cent higher.
The Economic Times  Aug 9  Comment 
The S&P/ASX 200 index rose 0.5 per cent to reach 6,297.7, after putting on 0.2 per cent on Wednesday.
The Economic Times  Jul 25  Comment 
The S&P/ASX 200 index fell 0.3 per cent, or 18.2 points to 6,247.6 at the close of trade.
The Economic Times  Jul 24  Comment 
The S&P/ASX 200 index rose 0.6 per cent, or 38.2 points to 6,265.8 at the close of trade.
The Economic Times  Jul 23  Comment 
The S&P/ASX 200 index declined 0.9 per cent, or 58.3 points, to 6,227.6 at the close of trade.
The Economic Times  Jul 20  Comment 
The S&P/ASX 200 index closed up 23.2 points, or 0.37per cent to 6,285.9.


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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