S&P/ASX 200 Index (AXJO)

QUOTE AND NEWS
The Economic Times  Mar 28  Comment 
The S&P/ASX 200 index gained 16.8 points to 5,366.9 at the close of trade. The benchmark added 0.5 per cent for the week.
The Economic Times  Mar 21  Comment 
The S&P/ASX 200 index added 44.1 points to 5,338.1, finishing the week 0.2 per cent higher. The benchmark fell 1.1 per cent on Thursday.
FX Street  Mar 11  Comment 
There have been a few bearish developments in the ASX 200 after yesterday’s slide. Iron ore,... For more information, read our latest forex news and reports.
Sydney Morning Herald  Mar 4  Comment 
New faces on the ASX 200 made a solid debut this profit season, giving comfort to investors for whom the memory of past float failures still looms large.     
The Economic Times  Feb 13  Comment 
The S&P/ASX 200 index benchmark slipped two points to finish at 5,308.1, snapping five sessions of gains, its longest winning streak since mid-October.
FX Street  Feb 5  Comment 
The Australian stock market has had a poor start to the year, with the ASX 200 down around 5.27%... For more information, read our latest forex news and reports.
MarketWatch  Feb 5  Comment 
Australian stocks were modestly higher early Wednesday, gaining back a slice of the benchmark index's 1.8% loss in the previous session. The S&P/ASX 200 Index rose 0.1% to 5,102.20, coming off an advance on Wall Street after its worst selloff in...
The Economic Times  Jan 24  Comment 
The S&P/ASX 200 index dropped 22.1 points to 5,240.9. The benchmark fell 1.1 per cent on Thursday, hit by disappointing factory data from China.
FX Street  Dec 31  Comment 
European shares: DAX reaches new highs European shares posted solid gains the week, with the major... For more information, read our latest forex news and reports.
Clusterstock  Dec 30  Comment 
The weekend is over and markets are mostly higher. Japan's Nikkei just opened up 0.6%. Australia's S&P/ASX 200 is up 0.48%. U.S. futures are down a notch, as are gold and oil. We are back to a full week of economic data, click here to...




 
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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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