The All Tech Index operates under an S&PDJI methodology and at launch will have 46 constituents with a combined market capitalisation of over A$100 billion. In total, there are more than 200 listed technology companies on the Australian Securities Exchange valued at almost A$115 billion.

By Ian Horswill


Posted on February 21, 2020

The Australian Securities Exchange has launched its own technology index, the fastest growing sector of the market.

The Australian Securities Exchange launched the S&P/ASX All Technology Index or the S&P/ASX All Tech as it will be known, at the Australian Securities Exchange in Sydney today (Friday local time), with executives from each of the hottest tech stocks Wisetech, Afterpay, Altium, Appen and Xero attending.

The S&P/ASX All Technology Index will go live from Monday morning and will be a smaller version of the Nasdaq composite index in the US and the FTSE techMARK Focus in the UK.

Australian Securities Exchange CEO and Managing Director, Dominic Stevens, said that the S&P/ASX All Tech Index will enhance the profile and understanding of listed technology companies in Australia and increase opportunities for investors.

“We’ve seen tremendous growth in the number of technology companies listing on ASX and the quality of their performance recently. 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%,” Stevens said in a statement.

“The All Tech Index recognises the critical mass of technology companies listed on ASX. It provides investors with an opportunity to see how the sector is tracking and gives them a benchmark to measure its performance.”

The All Tech Index operates under an S&PDJI methodology and at launch will have 46 constituents with a combined market capitalisation of over A$100 billion. In total, there are more than 200 listed technology companies on the Australian Securities Exchange valued at almost A$115 billion.

“Many of the companies included in the All Tech Index started as small caps and have grown into billion dollar companies,” Stevens added. “International firms, such as those from the United States, New Zealand and Europe, also see the opportunity to list and grow on the ASX market. A number are included in this new index.

“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. 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.”

Trent Innes CEO Awards
Xero managing director Trent Innes with his The CEO Magazine award.

New Zealand business Xero will lead the top 10 companies by market capitalisation at the launch of the S&P/ASX All Technology Index. The top 10 will be Xero, Computershare, Afterpay, REA Group, Altium, Carsales, WiseTech, Link Group, Next DC and Appen, Australian Financial Review reported.

The S&P/ASX All Technology Index does not have a set number of stocks and will be rebalanced quarterly. To qualify, a company must have a market capitalisation of at least A$120 million, have a minimum of $120,000 worth of value traded every day, a minimal investable weight factor of 0.3 and a minimum relative liquidity ratio of 30%.

“The launch of the S&P/ASX All Technology Index is a momentous day for the local technology sector that has for the two decades arguably struggled to spark the interest of institutional and retail investors addicted to minerals, banks and telecommunications,” IT News stated.

“The creation of the All Technology Index will also go some way to eliminating the economically debilitating cultural cringe that Australian technology purchasers, especially in software, have historically exhibited, shunning local product as too risky in favour of multinationals like SAP, Oracle and IBM.”