A Brief Introduction to ASX Sectors

The Australian Stock Exchange (ASX) adopts the Global Industry Classification Standard (GICS) when categorizing companies. The ASX has 11 sectors, 24 industry groups, 69 industries, and 158 sub-industries. The following is the sector performance over the last six months (data as of Feb 15, 2022).

Note: Sector map calculated by performance. All the data mentioned below is as of Feb 15, 2022

1.Information Technology
Number of companies listed on the ASX:193
The information technology sector is made up of three industry groups:
Software & Services Industry Group includes companies that offer consulting, data processing, internet services, applications, and systems software.
Technology Hardware & Equipment Industry Group covers companies that create and distribute electronic equipment and instruments, technology hardware, storage, peripherals, and communications equipment.
Semiconductors & Semiconductor Equipment Industry Group comprises technology companies that manufacture and supply semiconductors and their equipment.

2.Energy
Number of companies listed on the ASX: 143
The energy sector consists of two industries:
Energy Equipment & Services Industry covers oil & gas drilling, equipment, and services companies.
Oil, Gas & Consumable Fuel Industry covers exploration, production, refining, marketing, storage, and transportation companies.

3.Health Care
Number of companies listed on the ASX: 184
The health care sector is made up of two industry groups:
Health Care Equipment & Services Industry contains health care equipment, supplies, providers, services, and technology companies.
Pharmaceuticals, Biotechnology & Life Science Industry contains companies that produce and supply pharmaceuticals, biotechnology products, and provide life science services and tools.

4.Utilities
Number of companies listed on the ASX: 23
The utilities sector encompasses five industries:
Electric Utility Industry includes electricity generators, retailers, and metering providers.
Gas Utility Industry includes gas transmission, storage, processing, compression, and gas-powered generation companies.
Multi-utility Industry includes companies offering a wide range of utility services.
Water Utility Industry includes companies involved in water supply and water and wastewater technology.
Independent Power and & Renewable Energy Producers Industry includes independent companies that generate energy through renewable and non-renewable sources.

5.Consumer Staples
Number of companies listed on the ASX: 78
The consumer staples sector incorporates three industry groups:
Food, Beverage & Tobacco Industry contains packaged foods, agricultural products, brewers, distillers, soft drinks, and tobacco companies.
Household & Personal Products Industry contains companies that offer products like toiletries, vitamins, supplements, and other health and household products.
Food & Staples Retailing Industry contains companies involved in food and drug distribution and retail.

6.Consumer Discretionary
Number of companies listed on the ASX: 143
The consumer discretionary sector is made up of four industry groups:
Retailing  Industry consists of speciality and multi-line retailing companies, internet and direct marketing retailers, and distributors.
Consumer Services Industry consists of hotels, restaurants, leisure companies, and other diversified consumer services companies.
Consumer Durables & Apparel Industry consists companies that offer household durables, leisure products, textiles, apparel, and luxury goods.
Automobiles & Components Industry consists of companies manufacturing and supplying automobiles and their components.

7.Financials
Number of companies listed on the ASX: 292
The financials sector comprises three industry groups:
Diversified Financials Industry Group covers capital markets like asset management, diversified financial services, consumer finance, and mortgage REITs.
Insurance Industry Group covers companies involved in life and health, multi-line, property and casualty, reinsurance, and insurance brokers.
Banks Industry Group covers regional and diversified banks, thrifts, and mortgage finance companies.

8.Industrials
Number of companies listed on the ASX: 165
The industrials sector includes three industry groups:
Capital Goods Industry consists of construction and engineering, machinery, aerospace, building products, electrical engineering, and industrial conglomerates.
Commercial & Professional Services Industry consists companies offering commercial services, supplies, and professional services.
Transportation Industry consists of airlines, road, rail, marine, air freight, logistics, and transportation infrastructure companies.

9.Materials
Number of companies listed on the ASX: 779
The materials sector is made up of five industries:
Metals & Mining Industry covers gold, steel, silver, copper, aluminum, precious metals, minerals, other diversified metals, and mining companies.
Chemicals Industry covers commodity, specialty & diversified chemicals, fertilizers & agricultural chemicals, and industrial gases companies.
Construction Materials Industry covers companies that manufacturer and sell of construction materials.
Container & Packaging Industry covers companies that manufacture and supply container and packaging products.
Paper & Forest Products Industry covers forestry plantation, paper, and timber companies.

10.Communication Services
Number of companies listed on the ASX: 70
The communication services sector contains two industry groups:
Media & Entertainment Industry Group includes companies involved in advertising, broadcasting, publishing, movies, entertainment, interactive media, and related services.
Telecommunication Services Industry Group includes companies involved in mobile and integrated communications services.

11.Real Estate
Number of companies listed on the ASX: 81
The real estate sector incorporates of two industries:
Equity Real Estate Investment Trusts (REITs) Industry includes companies or trusts engaged in acquiring, developing, ownership, leasing, managing, and operating if property.
Real Estate Management & Development Industry includes companies that provide development & sales, management, and real estate services.

Are you familiar with the sectors mentioned above? Which one are you going to invest in this year? Let's explain your reasons in the comment area!

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