The numbers first
- The ASX trades from 10:00 to 16:00 Sydney time on weekdays, with an auction at the open and the close.
- The S&P/ASX 200 is the benchmark; the ASX 300 adds smaller companies and the All Ordinaries is broader still.
- Australian shares lean heavily toward banks and miners, which ties the market to commodity prices and interest rates.
The ASX is the Australian Securities Exchange, the country's main market for shares, exchange-traded funds and related products. When people say "the ASX was up today", they usually mean an index, most often the S&P/ASX 200. This guide separates the exchange from its indices and explains how to read both.
The exchange: hours and structure
Regular trading runs from 10:00 to 16:00 Sydney time, Monday to Friday. Before the open, orders build up in a pre-open phase and are matched in an opening auction; shares then open in staggered groups over the first few minutes. A closing auction sets the final price shortly after 16:00. Because Sydney is ahead of Europe and America, the ASX is one of the first major markets to react to overnight news, and our live board shows when it is open in your time zone.
Which ASX index? 20, 50, 200, 300 and the All Ords
The main ASX index family is run by S&P Dow Jones Indices, weighted by float-adjusted market capitalisation, so the largest companies carry the most weight.
| Index | What it covers | Typical use |
|---|---|---|
| S&P/ASX 20 | The 20 largest companies | Blue-chip snapshot |
| S&P/ASX 50 | The 50 largest companies | Large-cap benchmark |
| S&P/ASX 200 | 200 of the largest eligible companies | The main market benchmark; basis for futures and many funds |
| S&P/ASX 300 | The ASX 200 plus 100 smaller companies | Broader benchmark for fund managers |
| All Ordinaries | About 500 of the largest listed companies | Long-running broad measure |
The ASX 300 and the ASX 200 usually move very closely because the largest companies dominate both. The difference shows when smaller companies, often miners and technology firms, move sharply on their own.
What drives the Australian market
The Australian index is concentrated in two sectors: financials, led by the large banks, and materials, led by the big miners. That gives it a distinctive profile.
- Commodity prices, especially iron ore, copper, gold and energy, feed directly into the miners' earnings.
- China's economy matters because it is a major buyer of Australian resources.
- Interest rates set by the Reserve Bank of Australia affect bank margins and the housing market.
- The Australian dollar tends to move with commodity prices and risk appetite, which matters to foreign investors in Australian shares.
Many Australian companies pay regular dividends, and the country's dividend imputation system attaches franking credits to many payments, which affects how local investors value them. For more on dividends, see how the stock market works.
Listings on the exchange
Beyond ordinary shares, the ASX lists exchange-traded funds, real estate investment trusts, hybrid securities and warrants. Many small exploration companies, particularly in mining and energy, list on the ASX to raise capital, which is why the smaller end of the market can be especially volatile. Many of these companies have little or no revenue yet.
Getting exposure through funds
Many investors hold Australian shares through exchange-traded funds or managed funds that track an ASX index rather than picking companies. A fund tracking the ASX 200 or ASX 300 spreads money across hundreds of companies in proportion to their size, for an ongoing fee. Because the index is concentrated in banks and miners, so is the fund; broad does not mean evenly spread.
Currency: the extra layer for overseas investors
For an investor whose home currency is not the Australian dollar, returns depend on both the share price and the exchange rate. Illustrative example: if Australian shares rise 5% in Australian dollars while the Australian dollar falls 5% against the US dollar, a US-based investor's return is 1.05 × 0.95 − 1 = −0.25%, a small loss despite the rise. The same effect can work in your favour when the currency strengthens.
Watching the ASX today live
To watch the ASX today live, you need a real-time data source; many free quote pages show prices with a delay of around 20 minutes, which is usually marked on the page. Outside Sydney hours, futures on the ASX 200 trade for much of the night and give an early read on the next open. When comparing moves across markets, convert index points to percent first: an illustrative asx index level of 8,000 that falls 1.2% loses 96 points, closing at 7,904.
Our guide to reading the stock market explains volume, breadth and sectors in more detail.
Trading ASX indices with leverage
Index CFDs on the ASX 200 are offered by many providers. Under ASIC's product intervention rules, retail clients are limited to 20:1 leverage on major stock indices. Illustrative example: a position of A$1 per index point at a level of 8,000 has exposure of A$8,000 and needs A$400 of margin at 20:1. The 96-point fall above would cost A$96, almost a quarter of that margin, in a single day.
Reader questions
What is the difference between the ASX 200 and the ASX 300?
The ASX 300 contains the ASX 200 plus 100 smaller companies. Because both are weighted by market value, the largest companies dominate and the two usually move very closely.
What time does the ASX open?
Regular trading runs from 10:00 to 16:00 Sydney time on weekdays, with an opening auction and a closing auction. Shares open in staggered groups over the first few minutes.
Is the All Ordinaries the same as the ASX 200?
No. The All Ordinaries covers about 500 of the largest listed companies, so it is broader, though its moves are usually similar because large companies dominate both.
Sources
- ASX, trading hours and market phases
- S&P Dow Jones Indices, S&P/ASX index methodology
- Australian Securities and Investments Commission, CFD product intervention order