New ASX index launches without manufacturers

A new Australian Stock Exchange index goes live today representing an all inclusive view of Australia’s technology companies – yet it fails to include any manufacturers.

Eight of the top 10 members of the 46 companies in the new S&P/ASX All Technology Index (XTX) are classed as in information technology, with two offering communications services.

The index is led by Xero (XRO) followed by stock registry company Computershare (CPU), buy-now, pay later business Afterpay (APT) , REA Group (REA) and then Altium (ALU).

Then follows Carsales (CAR), Wisetech Global (WTC), another share market facilitator Link Administration Holdings (LNK), NEXTDC (NXT) and Appen (APX).

It has come to this that the word technology does not refer to the many fine Australian technology-based manufacturers in minerals processing, chemicals and explosives, medical technology, biotechnology and even manufacturing technology such as K-Tig and Titomic.

In fact it could be argued every manufacturer is fundamentally based on technology.

Yet according to the ASX the index is meant to represent the breadth of Australian technology.

It said: “The S&P/ASX All Technology Index (XTX) is designed to be a broader, more inclusive index than the existing S&P/ASX 200 Information Technology Index.

“This reflects the broad range of ASX-listed companies in the technology sector.”

Industry minister Karen Andrews presided over a Friday ceremony marking the launch saying the new tech index would “play a big role in increasing the tech sector’s visibility and will make it easier for everyday Australians to invest in tech companies, and share in their success.”

The index reached “across our economy…from logistics and finance to artificial intelligence.”

Just apparently not including manufacturing.

Picture: Karen Andrews

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