A Beginners Guide To The Australian Stock ExchangeSummary: This section looks at the Australian stock exchange, it's history and some of the factors that make the market unique.
The biggest stocks traded on the Australian Stock Exchange, in terms of their market capitalization, include BHP Billiton, Telstra, and the National Australia Bank. The mining sector makes up a relatively high proportion of the market, and relatively few manufacturing companies are listed. There are such large deposits of minerals and natural resources "Down Under" that the index is heavily weighted towards commodities. This means that unlike many national stock markets, the change in prices on the commodity markets can have an impact on the entire exchange. The main index is the S&P ASX 200 which is made up of the top 200 shares in the ASX. The previously significant All Ordinaries index still runs parallel to the S&P ASX 200. Both are commonly quoted together.
While the ASX regulates other listed companies listed on the ASX, it cannot regulate itself, and is regulated by the Australian Securities and Investments Commission (ASIC). At the end of 2004, 1515 stocks were listed on the Australian Stock Exchange with a total market capitalisation of $A991bn. This makes it the 8th largest world equity market, comprising around 2.2% of the MSCI world index. Would you like to watch a free stock trading video to help you make more money? You would! Great - then
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