IBEX 35

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IBEX 35
Foundation 1992
Operator Bolsas y Mercados Españoles
Exchanges Bolsa de Madrid
Constituents 35
Type Large cap
Market cap $771.4 billion (November 2007)[1]
Weighting
method
Capitalization-weighted
Related 
indices
Madrid General Index
Website www.ibex35.com
Values of the IBEX 35 between 1992 and 2009.
IBEX closing values between 21 and 24 January 2008, showing both the biggest one-day gain and fall.

The IBEX 35 (/ˈbɛks ˈθɜrti fv/; Spanish: [ˈiβe(k)s ˌtɾe(j)ntajˈθiŋko]; contraction of Índice Bursatil Español, literally Spanish Exchange Index) is the benchmark stock market index of the Bolsa de Madrid, Spain's principal stock exchange. Initiated in 1992, the index is administered and calculated by Sociedad de Bolsas, a subsidiary of Bolsas y Mercados Españoles (BME), the company which runs Spain's securities markets (including the Bolsa de Madrid). It is a market capitalization weighted index comprising the 35 most liquid Spanish stocks traded in the Madrid Stock Exchange General Index and is reviewed twice annually.[2] Trading on options and futures contracts on the IBEX 35 is provided by MEFF (Mercado Español de Futuros Financieros), another subsidiary of BME.[3]

History[edit]

The IBEX 35 was inaugurated on 14 January 1992,[4] although there are calculated values for the index back to 29 December 1989, where the base value of 3,000 points lies.[5]

Between 2000 and 2007, the index outperformed many of its Western peers,[6] driven by relatively strong domestic economic growth which particularly helped construction and real estate stocks.[7] Consequently, while the record highs to date of the FTSE 100, CAC 40 and AEX, for example, were set during the dot-com bubble in 1999 and 2000, the IBEX 35's all-time maximum of 15,945.70 was reached on 8 November 2007.[8][9]

The week of the January 2008 stock market downturn was characterised by extreme volatility in the markets, and saw both the biggest one day percentage fall and rise in the IBEX 35's history. The index closed 7.5% down on 21 January 2008, the second biggest fall in the Spanish equity market since 1987,[10] and rose a record 6.95% three days later.[11]

Rules[edit]

Selection[edit]

The composition of the IBEX 35 is reviewed twice per year (in June and December)[12] by the so-called Technical Advisory Committee, which consists of "representatives of the stock exchanges and derivatives markets, as well as... renowned experts from the academic and financial fields".[12] If any changes are made, they are effected on the first trading day of July or January.[12] In general, at each review, the 35 companies with the highest trading volume in Euros over the previous six months are chosen for inclusion in the index, provided that the average free float market cap of the stock is at least 0.3% of the total market cap of the index.[5] Any candidate stock must also have either been traded on at least a third of all trading days in the previous six months,[12] or rank in the top twenty overall in market cap[13] (thus allowing large recently IPO'ed companies to be included).

Weighting[edit]

The IBEX 35 is a capitalization-weighted index.[12] The market cap used to calculate the weighting of each constituent is multiplied by a free float factor (ranging from 0.1 to 1) depending on the fraction of shares not subject to block ownership.[5] Any company with 50% or more of its shares considered free float is given a free float factor of 1.[5] Unlike many other European benchmark indices, the weightings of companies in the IBEX 35 are not capped.

Calculation[edit]

The index value (given here as I) of the IBEX 35 index is calculated using the following formula:[5]

 I(t) = I(t-1)\times\frac{\sum_{i=1}^{35} {\rm Cap}_{i}(t)\,}{[\,\sum_{i=1}^{35} {\rm Cap}_{i}(t-1)\,\pm J\,]\,}

with t the moment of calculation; Cap the free float market cap of a specific listing and J a coefficient used to adjust the index on the back of capital increases or other corporate actions so as to ensure continuity. The formula can be adjusted to accommodate changes in index structure, such as the temporary suspension of companies pending news.

Components[edit]

The following 35 companies make up the index as of the addition of Jazztel effective 23 April 2013.

Passenger ferry operated by Acciona Trasmediterránea in Tenerife.
Banco Santander branch in Barcelona.
A branch of Inditex's Zara chain in Hong Kong.
Repsol YPF refinery in A Coruña.
Indra headquarters in Alcobendas.
Company Ticker symbol IGBM sector Index weighting (%)1
Abengoa ABG engineering and others 0.36
Abertis ABE car parks and motorways 2.26
Acciona ANA construction 1.01
Acerinox ACX minerals, metals and transformation 0.40
ACS ACS construction 2.10
Amadeus IT Holding AMS electronics and software 1.35
ArcelorMittal MTS minerals, metals and transformation 1.18
Banco Popular POP banks 1.51
Banco Sabadell SAB banks 1.17
Banco Santander SAN banks 16.47
Bankinter BKT banks 0.61
BBVA BBVA banks 8.82
BME BME investment services 0.53
Caixabank CABK banks 1.56
Dia DIA food retailers and wholesalers 0.62
Enagás ENG electricity and gas 1.03
Endesa ELE electricity and gas 0.58
FCC FCC construction 0.59
Ferrovial FER construction 1.98
Gamesa GAM manufacture and assembly of capital goods 0.26
Gas Natural GAS electricity and gas 2.38
Grifols GRF pharmacy products and biotechnology 0.94
Iberdrola IBE electricity and gas 9.35
Inditex ITX textiles, clothing and shoes 7.55
Indra IDR electronics and software 0.56
International Airlines Group (Iberia and British Airways) IAG transport and distribution 1.04
Jazztel JAZ telecommunications
Mapfre MAP insurance 0.91
Mediaset España Comunicación TL5 communication and publicity 0.44
Obrascón Huarte Lain OHL construction 0.47
Eléctrica REE electricity and gas 1.45
Repsol YPF REP petrol 7.65
Sacyr Vallehermoso SYV construction 0.22
Técnicas Reunidas TRE engineering and others 0.42
Telefónica TEF telecommunications and others 20.64

^1 - After the close on 30 September 2011. Source - Index constituents of IBEX 35 at the closing of: 30/09/2011 after adjustment, Sociedad de Bolsas.

References[edit]

  1. ^ "Index constituents of IBEX 35 at the closing of: 8/09/2011 after adjustment" (PDF). Sociedad de Bolsas. 9 June 2011. Retrieved 2011-09-08. 
  2. ^ IBEX 35 facts via Wikinvest
  3. ^ "About us". Mercado Español de Futuros Financieros. Retrieved 1 October 2010. 
  4. ^ "El Ibex 35 celebra su 15º cumpleaños con una revalorización superior al 400%". El Mundo. 15 January 2007. Retrieved 2008-01-21. 
  5. ^ a b c d e "Technical Regulations for the Composition and Calculation of the Sociedad De Bolsas, S.A. Indexes" (PDF). Sociedad de Bolsas. Retrieved 2008-01-27.  (Spanish)
  6. ^ "5-year comparison chart of Xetra DAX, IBEX 35, CAC 40, FTSE 100 and DJIA". Yahoo! Finance. Retrieved 2007-12-28. 
  7. ^ Smyth, Sharon (9 January 2007). "Around the Markets: Spanish stock market could become victim of its own success". Bloomberg (International Herald Tribune). Retrieved 2008-01-27. 
  8. ^ "Récord para el Ibex: Santander hizo saltar la sesión por los aires". eleconomista.es. 8 November 2007. Retrieved 2008-01-27. 
  9. ^ "Historical prices of IBEX 35". Yahoo! Finance. Retrieved 2007-12-28.  (Spanish)
  10. ^ "El Ibex 35 pierde un 7,5% y registra la mayor caída de toda su historia". El Mundo. 21 January 2008. Retrieved 2008-01-21. 
  11. ^ "El Ibex gana un 6,95%, la mayor subida de su historia". El País. 24 January 2008. Retrieved 2008-01-24.  (Spanish)
  12. ^ a b c d e "TEN KEY QUESTIONS ABOUT IBEX 35". Sociedad de Bolsas. Retrieved 2008-01-27. 
  13. ^ "Notice from the Technical Advisory Committee of the IBEX indices regarding changes to the Technical Regulations for the Composition and Calculation of the Indices" (PDF). Sociedad de Bolsas. 17 April 2008. Retrieved 2008-04-18. 

See also[edit]

Category:IBEX-35

External links[edit]