No investor considers a potential stock for investment in isolation. They need a comparison standard or benchmark to gauge the stock’s performance against similar stocks. Stock markets around the world maintain a variety of indexes, some to measure the country’s market as a whole, in segments, or by business sector.
ASX 200 Index (XJO)
Australia’s premier benchmark index is the S&P ASX 200 (XJO). The XJO is made up of 200 of Australia’s largest companies, with market capitalization ranging from $380 million dollars to more than $100 billion dollars, according to the ASX website. A committee from S&P (Standard and Poor’s) and the Australian Securities Exchange (ASX) select the constituent companies. The XJO is rebalanced quarterly, removing some companies and adding others based on changes in market capitalization.
A list of constituent companies can be found on the ASX website. Here are the top ten as of 28 November of 2024:
- Commonwealth Bank of Australia (CBA)
- BHP Group (BHP)
- CSL Limited (CSL)
- National Australia Bank (NAB)
- Westpac Banking Corporation (WBC)
- ANZ Group Holdings (ANZ)
- Macquarie Group Limited (MAQ)
- Wesfarmers Limited (WES)
- Goodman Group (GMG)
- Fortescue Limited (FMG)
These are all multi-billion dollar companies, with a third of the indexes top ten companies coming from the financial sector – with all four of Australia’s big four banks. The materials sector is the second largest. This suggests the XJO provides investors with a performance benchmark for large cap stocks with market caps ranging from around $380 million dollars to over 4100 billion.
ASX 200 (XJO) Live Chart
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ASX 200 (XJO) Forecast
Global investment banker Morgan Stanley remains bullish on the ASX 200 into 2025, forecasting robust earnings growth of 10% for the index companies. The company is expecting the XJO to reach 8,500 by year end. The XJO shattered Morgan Stanley’s projection of 8,100 by year end of 2024.
UBS agrees with Morgan Stanley, forecasting a 2025 closing at 8,500, with JP Morgan sounding a bearish note, predicting a fall to 7,900 by year end of 2025.
ASX 200 (XJO) Performance
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Latest ASX 200 News
