The ASX All Ordinaries Index, commonly known as the All Ords, stands as one of the most recognised and longstanding measures of the Australian share market’s overall performance. Its broad coverage, historical importance, and sector diversity make it a key reference point for understanding how the market behaves across different periods.
Covering around 500 companies across multiple industries, the ASX All Ordinaries Index acts as a mirror of Australia’s corporate landscape. It highlights the collective movement of some of the country’s largest organisations and provides insight into the nation’s economic trends.
What the ASX All Ordinaries Index Represents
The index includes the largest publicly listed companies on the Australian Securities Exchange, ranked by market capitalisation. With its inclusion of hundreds of companies, the All Ords offers a more expansive view than narrower indices that only track a smaller selection of top-tier organisations.
Its broad coverage spans key sectors such as:
Financial services
Mining and materials
Healthcare
Technology
Energy
Consumer industries
Real estate
Industrials
This wide representation helps capture the collective activity of companies across the entire economy, reflecting trends that might not be visible through a limited selection of stocks.
A Longstanding Benchmark in Australia’s Market History
First introduced in 1980, the ASX All Ordinaries Index is one of Australia’s oldest market indicators. It originally included every company listed on the ASX but later transitioned into a market-cap-based index that focuses on the largest 500 entities.
Its long history makes it a valuable tool for identifying long-term market shifts. Analysts, media outlets, and academic researchers continue to reference the All Ords due to its deep historical dataset, which spans decades of corporate and economic developments.
How the All Ords Moves During the Trading Day
The index updates throughout each trading session as the share prices of its constituent companies fluctuate. These changes reflect the combined influence of local and global factors that shape sentiment and activity.
Common drivers of movement in the ASX All Ordinaries Index include:
- Global Market Trends
Overnight movements in major global markets often influence early trading activity in Australia. Positive or negative sessions overseas may set the tone for the All Ords at the opening bell.
- Commodity Price Shifts
Australia is a resource-rich nation, so changes in prices of iron ore, coal, gold, and energy products often have a noticeable impact on the index, especially through large mining and energy companies.
- Corporate Announcements
Earnings reports, leadership changes, expansion plans, and sector-specific updates can lead to notable shifts in individual companies, which collectively influence the index.
- Economic Data Releases
Inflation results, employment figures, retail spending updates, and business sentiment surveys can impact expectations and contribute to index movements.
- Currency Fluctuations
Changes in the Australian dollar affect export-oriented industries, importing businesses, and companies with global operations, often influencing the index indirectly.
Why the ASX All Ordinaries Index Remains Important
Although newer indices like the S&P/ASX 200 receive considerable attention, the All Ords continues to serve as a key reference point due to its broad scope and historical continuity.
Here are some reasons why the index retains its relevance:
• Broad Market Coverage
With around 500 companies included, the index reflects a large portion of the Australian market, offering a more balanced perspective than narrower measures.
• Sector Diversity
The variety of industries represented helps ensure the index captures trends across the entire economy, not just within a few dominant sectors.
• Deep Historical Context
Because the index has been in use for over four decades, it offers valuable insight into long-term trends and market cycles.
• Indicator of General Market Conditions
The All Ords provides a clear snapshot of overall sentiment, highlighting whether the market is experiencing strength, weakness, or stability.
How Market Observers Use the ASX All Ordinaries Index
The All Ords is widely referenced in financial reporting and daily market summaries. It helps provide context for:
Nationwide market direction
Sector performance patterns
Shifts in economic sentiment
Comparisons with global market trends
Analysis of corporate behaviour across large and mid-sized companies
Because it includes such a broad range of organisations, the index is often seen as a more inclusive representation of market activity.
Comparison With Other Australian Indices
While the S&P/ASX 200 and S&P/ASX 300 are commonly mentioned in media, the All Ordinaries stands apart for its broader dataset.
ASX 200 – Tracks 200 of the largest and most actively traded companies.
ASX 300 – Expands this to 300 companies.
All Ordinaries – Covers around 500 companies, offering the broadest mainstream coverage.
Because of its size and history, the All Ords remains a crucial tool for those who want a wide-angle view of the Australian market.
Conclusion
The ASX All Ordinaries Index continues to be one of Australia’s most important market benchmarks. Its broad coverage, historical depth, and sector diversity make it a valuable indicator of national economic activity. Whether reflecting global influences, local developments, or sector-driven trends, the All Ords provides a comprehensive view of how Australia’s share market behaves across different conditions.
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