ASX launches tech index in recognition of growth
The Australian Securities Exchange (ASX) has announced the launch of a technology index in order to reflect Australia’s rapidly expanding sector.
Partnering with S&P Dow Jones to create the S&P/ASX All Technology Index, both companies hope that their latest move will foster upcoming talent, increase visibility for businesses already on public offering and incentivise investors.
Already featuring 200 listed tech stocks with a combined market cap of roughly AU$115bn, eligibility will follow a standard S&PDJI methodology: minimum market cap, trading value and liquidity status.
Stimulating a booming sector
“We’ve seen tremendous growth in the number of technology companies listing on ASX and the quality of their performance recently,” commented Dominic Stevens, CEO and MD of ASX.
Recognising that the creation of a special index for tech companies is long overdue, Stevens stated that the ASX’s move was indicative of how seriously the sector’s potential was being taken.
“Over the last three years, the annualised total return from the S&P/ASX 200 has been
around 10%, while the return from the new All Tech Index over the same period - if it had existed - would have been over 20%”
Estimated to contribute over $122bn to Australia’s economy annually (6.6% of GDP), the country’s tech industry is, nonetheless, ranked as the second-smallest amongst OECD (Organisation for Economic Co-Operation and Development) countries.
“Technology plays an increasingly important role in our lives. ASX will continue to develop the listed technology sector to provide companies with capital to grow and investors with access to exciting opportunities,” Stevens continues.
“A vibrant technology sector is also good for Australia. It helps drive economic growth, strengthens the relevance of our capital markets and encourages job creation and innovation onshore.”
Australian tech leaders
Xero, recently featured in Business Chief ANZ’s City Focus: Wellington, currently employs over 2,500 staff and has 15 offices spread across APAC, UK, North America and South Africa.
For more information on business topics in ANZ, please take a look at the latest edition of Business Chief ANZ.