scroll

All Ords Index

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 17/05/2025

All Ords Index

Hi team, sorry to ask 2 questions in a week. I use the S&P All Ords changes to update my overall universe of stocks I watch. Been doing it for a number of years blindly trusting that it is a fair dinkum index. But this year I can't keep up that trust. The number of no revenue, loss making, basically shit companies with sfa revenue or market cap that have been added to the All Ords beggars belief. Looks to me like money is changing hands to get that place on the index.... You may not feel able to comment but if you can, I'd be most interested to hear what you think about the composition of this index. Regards Jeremy

Answer

Hi Jeremy,

Over the years , the all-ords has lost it’s place as the premier index for the ASX, with the ASX200 taking the mantle. However, for whatever index it is, companies must qualify under a certain eligibility criteria, and it’s not about profitability, it’s more about size i.e market cap.

In terms of the ASX200 fror example:

The company must be listed as a ordinary equity (common stock), i.e. not not preference shares, ETFs, or hybrids.
The company must be one of the top 200 eligible securities by float-adjusted market capitalization, i.e. meaning shares available to public investors (not held by insiders, governments, etc.).
Liquidity, trading at least 0.025% of their adjusted market cap (i.e., enough turnover) in each month of the last six months.
The company must be domiciled in Australia and on CHESS.

If a stock jumps over these hurdles they may be selected to enter the “promised land”.

Latest Reports

Weekend report 17/05/2025

Weekend Q&A: The RBA will be centre stage this week, with a rate cut expected

The ASX 200 ended the week up +1.4 %, taking the month's gains to +2.7%, as the index pushed within striking distance of February's all-time high. The energy and tech sectors drove the gains, both ending the week by more than 5%, while defensive/rate-sensitive stocks dragged the chain, i.e. “risk on” was the order of the day. Out of the mainboard's 11 sectors, only the consumer staples, Utilities, and real estate sectors closed lower. The US-China “Trade Truce” set the platform for a strong start to the week, before the Australian market posted its highest level in three months on Friday after soft US economic data paved the way for interest rate cuts in Australia and the United States. The positive statistics are continuing to line up:

Afternoon report 16/05/2025

The Match Out: ASX books another strong week, now up 16% from the lows

SPI Futures were uber bullish overnight up nearly 100pts, outpacing gains in other markets and that drove a bump on open for stocks, however, it didn’t last with the main board giving back the lion’s share of gains as the day progressed, ultimately trading more than 50pts off the early highs – a sign of exhaustion in the short term after a great rally in stocks.