ASX launches Agribusiness Index

Investors can now easily track the biggest Australian Securities Exchange-listed players in agribusiness. See who topped the new index.

Australian agribusiness now has its own index on the Australian Securities Exchange.

In a partnership with S&P Dow Jones Indices, the ASX launched the S&P/ASX Agribusiness Index, with real-time tracking to begin on July 1.

Australian Securities Exchange head of strategic delivery Ken Chapman.

The new index, XAG, has been launched to give investors a benchmark to track the performance of the nation’s listed primary production companies.

Topping the new index, in order of market capitalisation, is:

1. Treasury Wine Estates

2. a2

3. Nufarm

4. GrainCorp

5. Elders

6. Costa

7. Bega

8. United Malt

9. Rural Funds Management

10. Inghams

ASX head of strategic delivery Ken Chapman said it was an anomaly that there hadn’t been an agriculture-specific index until now.

“We have a range of sector indices; mining, energy, banks, and frankly it was an anomaly there was no index attached to the sector.

“Agribusiness is only 1 per cent, or just over, of the index by market capitalisation, so its not huge, but it’s time that profile is changed and that was a driver to set up the index,” Mr Chapman said.

Companies on the index are all involved in the primary production of agricultural products and the production of commodities used as farming inputs.

Agribusiness adviser David Williams said the creation of the index was an important development for the industry.

“It emphasises the liquidity of those in the index and it drives a lot of investment that otherwise wouldn’t be there,” Mr Williams said.