The All Ordinaries Index, also referred to as the All Ords, is one of the most frequently cited indices when discussing the Australian stock market. This index, which was created decades ago, gives investors a glimpse of the performance of the biggest firms listed on the Australian Securities Exchange (ASX) and is a crucial indicator of the Australian economy.
Origins and Purpose
The All Ordinaries Index was introduced in January 1980 by the Australian Stock Exchange (now ASX), as a way to track the performance of the top Australian companies listed on the exchange. It was the first major index in the country and began with a base value of 500 points.
The purpose was simple: provide a broad-based benchmark for the performance of the Australian stock market. Unlike other indices that might focus on a specific sector or only the top few companies, the All Ords includes the 500 largest ASX-listed companies by market capitalization, giving a holistic view of the market.
Key Milestones in All Ords History
1980s: The Boom and Bust Era
The 1980s saw a significant rise in the All Ords, with investor enthusiasm fueled by financial deregulation, a property boom, and corporate takeovers. However, this came crashing down during the 1987 global stock market crash. On October 20, 1987, the index fell by over 25% in a single day, marking one of the most dramatic drops in Australian market history.
1990s: Recovery and Reform
Following the early 1990s recession, the index began to recover steadily. The decade also saw structural reforms, the rise of tech companies, and the beginning of superannuation investments driving stock ownership among everyday Australians.
2000s: The Mining Boom and GFC
The early 2000s were marked by the mining boom, driven by China’s industrial growth and demand for Australian commodities. By late 2007, the All Ords peaked at over 6,800 points. However, the Global Financial Crisis (GFC) struck soon after, and by early 2009, the index had plunged below 3,100 points, wiping out years of gains.
2010s: Slow but Steady Growth
The decade following the GFC was defined by gradual recovery. Low interest rates and rising commodity prices supported the Australian economy. The All Ords climbed steadily, though with occasional volatility, such as during the Eurozone crisis and trade tensions between the US and China.
2020–2021: COVID-19 Shock and Rebound
In March 2020, the All Ords experienced a sharp drop amid global panic caused by the COVID-19 pandemic, falling by more than 30% in a matter of weeks. However, swift fiscal and monetary responses saw the market rebound rapidly. By late 2021, the All Ords reached record highs, surpassing 7,800 points.
2022–2025: Inflation, Interest Rates, and New Challenges
With inflation rising globally, central banks—including the Reserve Bank of Australia—began raising interest rates. This caused some market turbulence and led to more cautious investor sentiment. Yet, the All Ords has remained resilient, underpinned by a strong resource sector, banking stability, and growing technology contributions.
What the All Ords Represents Today
Today, the All Ords remains a key benchmark in Australian finance. Although newer indices like the ASX 200 have gained prominence (as it includes only the top 200 stocks and is market-cap weighted), the All Ords continues to serve as a broader indicator of market sentiment and overall economic health.
It covers a wide array of industries:
- Mining & Resources (BHP, Rio Tinto)
- Financials (Commonwealth Bank, Westpac)
- Healthcare (CSL)
- Technology (WiseTech, Xero)
- Retail & Consumer Goods
Looking Ahead
As Australia continues to adapt to global economic shifts, technology innovation, climate challenges, and demographic change, the companies within the All Ords will evolve. Investors will likely keep looking to the index as a guidepost—not just of returns, but of resilience