ASX shares have previously been included within the S&P Asia Pacific 100 index, alongside equities from Hong Kong, Taiwan and Singapore. From June 23 the S&P/ASX 50 will be included in its own right.
"This is a significant development for the Australian market," said Richard Humphry, ASX Managing Director and CEO. "It highlights the increasing recognition of the Australian market at a global level and represents and index weighting of almost 4.2%. This is expected to result in increased interest from offshore and greater liquidity for our market."
The development also underlines the merits of the transition to GICS (Global Industry Classification Standard) in July 2002, which allows comparison of ASX shares with the rest of the world.
The S&P/ASX 50 includes the 50 largest shares on the ASX, representing approximately 75% of total equity market cap. Investors can gain direct exposure to this index via the ASX Mini 50 futures contract and the StreetTracks 50 ETF (Exchange Traded Fund).
ASX has also announced that share trading levels rose sharply in May, providing the highest levels of trading in 12 months and the second highest since March 2000. This was driven in part by a dramatic re-entry of retail investors, accounting for nearly 51% of trade, up from 44% in March this year.
