They calculate it as follows:
Market Capitalization. The S&P/ASX indices only include securities that are considered to be
institutionally investable, and market capitalization is a key criterion for stock selection. Stocks are
included if they are large enough to meet the minimum ranking requirements for the representative
indices within the Australian market.
Except for the S&P/ASX All Technology Index, the S&P/ASX Agribusiness Index, and the All Ordinaries,
the market capitalization criterion for stock inclusion is based upon the daily average market capitalization
of a security over the last six months. The ASX stock price history (last six months, adjusted for priceadjusting corporate actions), latest available shares on issue, and the Investable Weight Factor (IWF) are
the relevant variables for the calculation. The IWF is a variable that is primarily used to determine the
available float of a security for ASX-listed securities.
For the S&P/ASX All Technology Index securities must, as of the rebalancing reference date, have a
minimum three-month average float-adjusted market capitalization of AUD 120 million (current
constituents AUD 80 million).
The S&P/ASX Agribusiness Index securities draws, as of the rebalancing reference date, from the
universe consisting of the largest, by total market capitalization, 1,000 ASX-listed securities.
The All Ordinaries selects the largest 500 securities based on six-month average total market
capitalization; all companies are assigned an IWF of 1 for ranking purposes.
Liquidity. Only securities that are regularly traded are eligible for inclusion in any S&P/ASX index. A
stock’s liquidity is measured relative to its peers2
. Relative Liquidity is calculated as follows:
Relative Liquidity = Stock Median Liquidity / Market Liquidity.
where:
• Stock Median Liquidity is the median daily value traded on the ASX for each stock divided by the
average float/index weight-adjusted market capitalization for the previous six months and;
• Market Liquidity is determined using the market capitalization weighted average of the stock
median liquidities of the 500 companies in the All Ordinaries index. The market capitalization
weight for stocks in the S&P/ASX 300 is float-adjusted, otherwise the unadjusted market
capitalization is used for weighting purposes (i.e. an IWF of 1 for stocks in the All Ordinaries, but
not the S&P/ASX 300).
They then go on to say if we drop below half of the 50% requirement ie below 25% we become ineligible and removed at the next rebalance.
I am not a day trader, so I do not have access to the above listed data to do the calc.
But I appreciate your optimism that we will be maintained in ASX200
Expand
(20min delay)