How is the ASX 200 index weighting calculated?

[Allegre]

Greetings all

I want to know how the ASX200 is calculated (Is it the sum total of the 200 share prices or is some sort of algorthim used) and what is more important in a stock for causing a general move in the index, Price or market capitalisation. For example which is more influential in causing strong moves? a cheaper stock with more shares or an expensive stock with fewer shares given that a higher price would make up more of the index.

cheers

 

[skyQuake]

Re: How is the ASX200 index weighting calculated?

Greetings all

I want to know how the ASX200 is calculated (Is it the sum total of the 200 share prices or is some sort of algorthim used) and what is more important in a stock for causing a general move in the index, Price or market capitalisation. For example which is more influential in causing strong moves? a cheaper stock with more shares or an expensive stock with fewer shares given that a higher price would make up more of the index.

cheers

http://www2.standardandpoors.com/spf/pdf/index/SP_ASX_200_Factsheet_A4.pdf

small stocks arent even included in the ASX200
Not that they'll have much of an impact given their tiny mkt caps

 

[Richard Dale]

Re: How is the ASX200 index weighting calculated?

Market cap weighted with a further Investable Weight Factor applied depending upon level of free float.

 

[So_Cynical]

Re: How is the ASX200 index weighting calculated?

http://www.spdrs.com.au/etf/fund/fund_holdings_STW.html

The above link shows the stock weightings of the largest ASX200 tracking fund...they accurately reflect the actual AsX200 weightings....hope that's a help to you.