Kangaroos

As per the Kangaroos meaning, it is used to refer to some slang term in context with Australian stocks. It is known to comprise the benchmark of the country –All-Ordinaries Index. The index is known to feature stocks of some of the companies in Australia that are mostly actively traded.

An Insight into Kangaroos

The Kangaroos is known to consist of the 'All-Ordinaries Index' that represents the benchmark index, which is highly quoted for the equities Market of the country. The Australian Stock Exchange is responsible for calculating as well as distributing the index along with its returns. The All-Ordinaries Index, that is market-weighted, was launched during January 1980.

It serves to be the oldest index that is operational in Australia. At the same time, the index is also known to include around 500 companies. The index started at the best value of 500 with respect to the contemporary value of the aggregate market of the respective market companies in the given index towards the end of trading in 1979.

Subsequent values of the All-Ordinaries Index is calculated in the form of the base number at least 500 times the overall proportion of the ongoing aggregate market value at the index’s beginning. The market capitalization of the organizations included in the given index represents the dominant share of the shares’ values listed on the Australian Stock Exchange.

To be included, companies within the All-Ordinaries Index should feature a market value of around 0.2 percent of the domestic equity that have been quoted on the exchange. Moreover, it has an average turnover of around 0.5 percent of the quoted shares on a monthly Basis. Market values of the respective stocks that meet the given criteria would vary. Therefore, movements with respect to the share price amongst large-cap organizations tend to have a greater influence on the given index in comparison to smaller companies.

Financial organizations are known to make up the largest aspect of the index upon breaking down with the help of industrial sectors –followed by industrial sectors and Raw Materials.

Due to its weightage by market capitalization while being indexed to the aggregate market value, the All-Ordinaries Index helps in reflecting the overall market performance instead of the typical performance of stocks. The index is not known to include dividends that are paid to the shareholders. Due to this, the index will not be reflecting the total returns that are made from investments in the share market over a specific period.

The Australian Stock Exchange is known to update the respective index Portfolio at every month’s end for ensuring that the companies would remain eligible to be included. Alterations in the portfolio companies –like additions, delistings, Capital reconstructions, and others could also be the cause of major index changes during the given month.