ASX All Ordinaries Index Review

The Australian Stock Exchange (ASX) has today released a working paper titled "Rules for the Construction of the All Ordinaries Index." ASX has been reviewing All Ordinaries Index (AOI) to ensure that it continues to meet the needs of market participants. Broad consultation continues to be an important part of the review process, and the working paper is intended to provide interested parties with information on the rules governing the construction of the revised AOI. The Rules set out the technical requirement to give effect to the decision to expand the recognised market indicator, the All Ordinaries Index, to 500 listed securities and to create a new series of benchmark indices for institutional investment. The decision has emerged after consultation with the complete range of All Ordinaries user groups including a number of special interest groups and the ASX Index Advisory Panel. The 11 member panel, draws on representation from investment institutions through the Investment & Financial Services Association and the Association of Superannuation Funds of Australia, asset managers and consultants, listed companies, stockbrokers, and the Sydney Futures Exchange. Comments or feedback on the composition of the rules are being sought from interested parties by 28 May, 1999.