The All Ordinary Index (AOI) is a major indicator of Australia’s economic health, representing around 95% of the value of shares traded on the Australian Stock Exchange (ASX). It includes 500 companies and is adjusted monthly. Investors use it to track market direction and build portfolios.
The All Ordinary Index (AOI) is an Australian stock index used as a major indicator of Australia’s economic health. Collectively, the stocks listed in this index represent around 95% of the value of shares traded on the Australian Stock Exchange (ASX). Investors use the AOI as an indicator of market direction, along with other stock indices, and it can also be used when building portfolios and developing a strong foundation of core stocks to fill out a portfolio. The latest information on the performance of this index can be found on financial sites and through the ASX itself.
The Australian Stock Exchange developed the All Ordinary Index in 1980, making it the oldest stock index used in Australian markets. It includes 500 companies and is adjusted monthly to remove companies that no longer qualify for inclusion and to add new companies to the list. Stocks listed in this index must have a monthly turnover of at least 0.5% of shares outstanding, and their market value must exceed 0.2% of shares traded on the ASX.
Sometimes referred to as the “All Ords”, the All Ordinaries Index is a reflection of the largest companies operating in Australia. The fortunes of the individual companies listed in this broad index rise and fall at different rates, but the index provides a good overview for traders and economists of the performance of these companies as a whole. Another index used to measure performance on the Australian Stock Exchange is the S&P/ASX 200, a list generated by Standard & Poor’s to collect information on high performing stocks in Australia.
People can use stock indices like the All Ordinary Index in different ways. People sometimes use them to refer to general market activity. The rallies in the stock indices suggest a general upward trend in the market, while the downward movements suggest faltering investor confidence and a decline in general stock values. Individual investors track the movements of stock indices to make decisions about when and where to invest.
The Australian Stock Exchange lists up-to-date information on the All Ordinary Index and other indices on its website, as well as providing it by ticker on the trading floor. Also, financial sites around the world include this index. Subscription services allow people to follow trading activity by phone, email and other places, and people can set specific alerts for sudden movements to quickly respond to changes in the market.
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