Exchange cleans up its indices

THE Australian Stock Exchange has released an brochure outlining the restructure of the All Ordinaries Index.

ASX national manager market data John Ying said the existing indices, including the All Ordinaries, were being restructured and some new indices were being introduced to meet the differing demands of today’s market users.

“The original All Ordinaries Index was created twenty years ago as a simple way of measuring market movement,” Mr Ying said. “It was not designed as an instrument against which to measure portfolio or individual stock performance.

“To more accurately reflect market movement it will be expanded to 500 companies. It will include some companies with market capitalisation at low as $37 million, will account for about 99 per cent of total market value and will be fully weighted by market capitalisation.”