Whether you’re a seasoned investor seeking fresh insights or a newcomer eager to understanding the inner workings of the ASX, knowing the industry sectors helps investors make smart trading decisions.
Companies listed on the ASX are categorised into market sectors using the Global Industry Classification Standard sectors (CIGS).
Take a look at the main sectors on the ASX:
Consumer staples:
This sector encompasses companies engaged in the production and distribution of essential everyday goods like food and beverages. Think household names like Wesfarmers and Woolworths.
Energy:
Within this sector, you’ll find explorers and producers of energy resources, including oil, gas, and renewable energies. Notable players include Origin Energy and Santos.
Financials:
The financial sector includes banks, asset managers, insurance companies, and other providers of financial services. Among the giants in this arena are the big four banks.
Financials excluding A-REITs:
This subset within the financial sectors focuses on companies involved in banking, finance, consumer finance, investment banking, and brokerage, excluding Australian Real Estate Investment Trusts (A-REITs).
Health Care:
The health care sector comprises pharmaceuticals, biotechnology firms, medical practices, pathology companies, as well as junior life sciences and medical device companies. Key players include CSL and Sonic Healthcare.
Industrials:
Diverse industries fall under the industrials sector including construction, engineering, infrastructure, transport, and commercial services. Companies like Qantas and Transurban exemplify this category.
Information Technology:
Here, you’ll find mainly small to medium-sized businesses, including IT consultancies, software developers, and vendors. Prominent names in this field include Wisetech and Xero.
Metals and Mining:
Home to some of the world’s leading resource companies, along with a growing number of mid-tier producers and exploration firms. Think giants like BHP and Rio Tinto.
Telecommunications Services:
This sector is dedicated to telecommunications carriers, distributors, and resellers. Notable players in this area are Telstra and iiNet.
Utilities:
Major electricity and gas retailers, along with several smaller utility providers, are part of this sector. Recognisable names include AGL Energy and APA Group.
Real Estate:
Lastly, companies and investment trusts deriving income exclusively from commercial. Industrial, and residential real estate (excluding REITs) fall into the real estate sector. You’ll find examples such as Mirvac and Westfield
