Australian investors can track and participate in the ASX’s booming agricultural sector through a new specialist index, which boasts a combined market capitalisation of nearly $30 billion, in a single trade.P/ASX Agribusiness Index unites companies whose principal business activity involves the creation of agricultural products, or the production of commodities used in those products.
While the ASX has been planning the AgBiz index for nearly two years, its launch comes at a critical juncture for the industry, which is facing booming consumer demand and tight supply exacerbated by Russia’s invasion of Ukraine. “For many investors, the recent market volatility has highlighted the benefits of a diversified investment portfolio and of quality counter-cyclical stocks, such as those in the agribusiness sector,” Mr Chapman said.“The combination of accelerating climate risks, booming consumer demand, increasing complexity in geopolitical relations and supply chains, and exponential advances in technology is driving demand for capital in all stages in the value chain.
It will select companies from the largest 1000 ASX-listed securities, and include a total of 11 sub-industries such as brewers, packaged foods and meats, paper products, fertilisers and agricultural chemicals, distillers and vintners.
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Source: FinancialReview - 🏆 2. / 90 Read more »