
All Ordinaries Index (All Ords)
The All Ordinaries Index (also known as the All Ords) is a market index which tracks the performance of the 500 largest companies listed on the Australian Stock Exchange (ASX). It is the most widely used gauge of the Australian stock market, representing approximately 80% of the entire market capitalisation of the ASX.
For example, if the All Ords opens at 6,000 points and rises to 6,200 points by the end of the day, it means that the overall value of the 500 largest companies on the ASX has increased by 3.3% (200 points/6,000 points x 100).
The formula used to calculate the All Ords index is the market capitalisation-weighted average of the 500 largest companies listed on the ASX. This takes into account the value of each company’s shares and the number of shares in circulation.