The S&P/ASX 200 is the primary stock market index of Australia and is made up of the top 200 companies’ stocks that are listed in the Australian Securities Exchange. The ASX 200 list of companies include businesses whose valued is estimated as higher than $380 million. Some of the companies are worth more than $100 billion.
Companies that are selected to be included in the ASX 200 list go through a committee from Standard & Poor’s and the Australian Securities Exchange.
All of the companies in the Australian Securities Exchange are rated according to their market capitalization and (with the exception of exchange traded funds and Listed Investment companies) the top 200 stocks according to specific criteria become a candidate for inclusion in the ASX 200 list.
For four times every year in the month of March, June, September and December, the index goes through a rebalancing process. The market is notified at least two business days before this occurs. If special events – such as mergers and delistings – take place, then an intra-quarter rebalance is initiated.
The biggest company in the ASX 200 list of companies with a market cap of $124 billion is the Commonwealth Bank, which is an Australian multinational bank with businesses in places such as Asia, the U.S. and New Zealand. the Commonwealth Bank is a member of Australia’s “big four” banks.
BHP Billiton Ltd.
BHP Billiton Ltd. is a multinational mining, metals and petroleum company with a market cap of $102 billion. With a revenue of 69.4 billion US dollars, BHP Billiton Ltd is the second largest mining company in the whole world second only to Switzerland’s Glencore.
Westpac Banking Corp.
Usually referred to as Westpac, this Sydney-based bank and financial services provider is one of the “big four” banks in Australia. It is, at the moment, third in the ASX 200 list of companies with a market cap of $98.76 billion.
CSL Limited is a biotechnology company which handles the research, development and manufacture of medical drugs. Its market capitalization is approximately $82.76 billion.
ANZ Banking Group Ltd.ANZ is the third of the “big four” banks in terms of market capitalization right after Commonwealth Bank and Westpac. It possesses a market capitalization of $81.65 billion.