Much has been made of how concentrated our local All Share Index (ALSI) is and how certain companies (like Naspers) have a significant impact on movements of the index.
But the ALSI is not unique.
The Dow Jones Industrial Average also called DJIA, or simply the Dow, is a stock market index, that shows how 30 large publicly owned companies based in the United States have traded over a period. The Dow is a price-weighted index. Since March 18, 2015, after the close, the Dow Jones Industrial Average has consisted of the following 30 major companies:
Table1: The Dow Jones Industrial Average as at 2 September 2017 ranked by weight in the index.
Apple to the rescue
The Dow has looked like this since March 2015 when Apple joined the index. Now the largest US company by market value, Apple had a storming month in August, its price rising nearly 10% in just one month! Apple added more than 100 points to the Dow in August while the index only finished the month up by about just one point in aggregate.
Apple also left its mark on the market cap-weighted S&P 500, where the stock makes up more than 4% of the index. The S&P, which was down about 0.5% for the month would have been down about 0.9% without Apple’s help, according to S&P Dow Jones Indices.
Source: Wall Street Journal