What is the ASX 200 divisor?

[DrTong]

Does anyone know What the asx20/200 divisor is? or what the formula for calculating points on the index is? there are examples for this on wikipaedia for the DJIA but not for the asx. Cannot find info on this anywhere.

cheers

 

[skc]

Re: What is the asx200 divisor?

Does anyone know What the asx20/200 divisor is? or what the formula for calculating points on the index is? there are examples for this on wikipaedia for the DJIA but not for the asx. Cannot find info on this anywhere.

cheers

Not sure what you meant by divisor, but you can go to the source for all the information you need.

http://www.spindices.com/indices/equity/sp-asx-200

 

[stockGURU]

Some general information on the Wikipedia page:

Although the calculation starts with a sum of the market capitalisation of the constituent stocks, it's intended to reflect changes in share price, NOT market capitalisation. Therefore a fudge factor called the "Divisor" is used to ensure that the index value only changes when stock prices change, not whenever market capitalisation changes. For example, if a company increases its market capitalisation by issuing new shares, the Divisor is adjusted so that the ASX 200 index value does not change.

http://en.wikipedia.org/wiki/S&P/ASX_200

 

[DrTong]

yeah I saw that wiki definition, that's where i found out about the divisor. I'll put it another way. If you viewed the shares as a whole ie all the share prices making up an index in this case the ASX200, How much does the price have to move in the shares to move the index one point? so for the ASX20/200 index one point would equal what? 10c, 50c, $1?.

The divisor would be the number that gives you the answer of what one point is worth.

I had the S&P documents for index math that give verbal explanations and formula examples but i need a working example that demonstrates how it's worked out. Without that i can't be sure i'm doing it correctly. I totally suck at maths to begin with and it's been twenty years since i had to understand equations.

 

[Richard Dale]

Standard and Poors only disclose this if you subscribe to their institutional level product called S&P/ASX Index Watch.

http://www.standardandpoors.com/products-services/indexwatch/en/au

I have no idea if they offer this on an individual user basis - perhaps you could check with them and report back here?