IBEX 35
Encyclopedia
The IBEX 35 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
, which are reviewed twice annually. Trading on options
and futures contract
s on the IBEX 35 is provided by MEFF (Mercado Español de Futuros Financieros), another subsidiary of BME.
Between 2000 and 2007, the index outperformed many of its Western
peers, driven by relatively strong domestic economic growth
which particularly helped construction
and real estate
stocks. 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.
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, and rose a record 6.95% three days later.
s and derivatives
markets, as well as... renowned experts from the academic
and financial fields". If any changes are made, they are
effected on the first trading day of July or January. In general, at each review, the 35 companies with the highest trading volume in Euro
s 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. Any candidate stock must also have either been traded on at least a third of all trading days in the previous six months, or rank in the top twenty overall in market cap (thus allowing large recently IPO'ed
companies to be included).
The IBEX 35 is a market value-weighted index
. 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. Any company with 50% or more of its shares considered free float is given a free float factor of 1. Unlike many other Europe
an benchmark indices, the weightings of companies in the IBEX 35 are not capped.
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 action
s 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.
effective 3 October 2011.
- 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.
Stock market index
A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds....
of the Bolsa de Madrid
Bolsa de Madrid
Bolsa de Madrid is the largest and most international of Spain's four regional stock exchanges that trade shares and convertible bonds and fixed income securities, and both government and private-sector debt...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
's principal stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
. Initiated in 1992, the index is administered and calculated by Sociedad de Bolsas, a subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of Bolsas y Mercados Españoles
Bolsas y Mercados Españoles
Bolsas y Mercados Españoles is the operator of all stock Markets and financial systems in Spain. BME has been a listed company since 14 July 2006 and an IBEX 35® constituent since July 2007. In the last few years it has become a reference in the sector in terms of solvency, efficiency and...
(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
Market liquidity
In business, economics or investment, market liquidity is an asset's ability to be sold without causing a significant movement in the price and with minimum loss of value...
Spanish stocks traded in the Madrid Stock Exchange General Index
Madrid Stock Exchange General Index
The Madrid Stock Exchange General Index is a capitalization-weighted stock market index that measures the performance of a selected number of continuous market stocks. It is the principal index for the Bolsa de Madrid and represents the construction, financial services, communications, consumer,...
, which are reviewed twice annually. Trading on options
Option (finance)
In finance, an option is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price. The buyer of the option gains the right, but not the obligation, to engage in that transaction, while the seller incurs the...
and futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s on the IBEX 35 is provided by MEFF (Mercado Español de Futuros Financieros), another subsidiary of BME.
History
The IBEX 35 was inaugurated on 14 January 1992, although there are calculated values for the index back to 29 December 1989, where the base value of 3,000 points lies.Between 2000 and 2007, the index outperformed many of its Western
Western world
The Western world, also known as the West and the Occident , is a term referring to the countries of Western Europe , the countries of the Americas, as well all countries of Northern and Central Europe, Australia and New Zealand...
peers, driven by relatively strong domestic economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
which particularly helped construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
stocks. Consequently, while the record highs to date of the FTSE 100, CAC 40
CAC 40
The CAC 40 is a benchmark French stock market index. The index represents a capitalization-weighted measure of the 40 most significant values among the 100 highest market caps on the Paris Bourse...
and AEX
AEX index
The AEX index, derived from Amsterdam Exchange index, is a stock market index composed of Dutch companies that trade on Euronext Amsterdam, formerly known as the Amsterdam Stock Exchange. Started in 1983, the index is composed of a maximum of 25 of the most actively traded securities on the exchange...
, for example, were set during the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
in 1999 and 2000, the IBEX 35's all-time maximum of 15,945.70 was reached on 8 November 2007.
The week of the January 2008 stock market downturn was characterised by extreme volatility
Volatility (finance)
In finance, volatility is a measure for variation of price of a financial instrument over time. Historic volatility is derived from time series of past market prices...
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, and rose a record 6.95% three days later.
Selection
The composition of the IBEX 35 is reviewed twice per year (in June and December) by the so-called Technical Advisory Committee, which consists of "representatives of the stock exchangeStock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
s and derivatives
Derivative (finance)
A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
markets, as well as... renowned experts from the academic
Academia
Academia is the community of students and scholars engaged in higher education and research.-Etymology:The word comes from the akademeia in ancient Greece. Outside the city walls of Athens, the gymnasium was made famous by Plato as a center of learning...
and financial fields". If any changes are made, they are
effected on the first trading day of July or January. In general, at each review, the 35 companies with the highest trading volume in Euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
s over the previous six months are chosen for inclusion in the index, provided that the average free float market cap
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
of the stock is at least 0.3% of the total market cap of the index. Any candidate stock must also have either been traded on at least a third of all trading days in the previous six months, or rank in the top twenty overall in market cap (thus allowing large recently IPO'ed
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
companies to be included).
Weighting
Market value-weighted index
A capitalization-weighted index is an index whose components are weighted according to the total market value of their outstanding shares. Also called a market-value-weighted index...
. The market cap used to calculate the weighting of each constituent is multiplied by a free float factor
Coefficient
In mathematics, a coefficient is a multiplicative factor in some term of an expression ; it is usually a number, but in any case does not involve any variables of the expression...
(ranging from 0.1 to 1) depending on the fraction of shares not subject to block ownership. Any company with 50% or more of its shares considered free float is given a free float factor of 1. Unlike many other Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an benchmark indices, the weightings of companies in the IBEX 35 are not capped.
Calculation
The index value (given here as I) of the IBEX 35 index is calculated using the following formula: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 action
Corporate action
A corporate action is an event initiated by a public company that affects the securities issued by the company. Some corporate actions such as a dividend or coupon payment may have a direct financial impact on the shareholders or bondholders; another example is a call of a debt security...
s 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
The following 35 companies make up the index as of the addition of BankiaBankia
Bankia is a genus of ship-worms, marine bivalve molluscs of the family Teredinidae.-Species in the genus Bankia:* Bankia australis * Bankia bipennata * Bankia brevis...
effective 3 October 2011.
| Company | IGBM Madrid Stock Exchange General Index The Madrid Stock Exchange General Index is a capitalization-weighted stock market index that measures the performance of a selected number of continuous market stocks. It is the principal index for the Bolsa de Madrid and represents the construction, financial services, communications, consumer,... sector | Ticker symbol | |
|---|---|---|---|
| Abengoa Abengoa Abengoa is a Spanish multinational corporation, which includes companies in the domains of energy, telecommunications, transportation, and the environment... |
engineering and others | 0.36 | |
| Abertis Abertis Abertis Infraestructuras, S.A. is a Spanish corporation. The company runs 6,713 kilometres of motorways in Europe and operates more than a dozen airports in cities including London, Stockholm and Orlando... |
car parks and motorways | 2.26 | |
| Acciona Acciona Acciona, S.A., is a Spanish conglomerate group dedicated to civil engineering, construction and infrastructure.The company was founded in 1997 through the merger of Entrecanales y Tavora and Cubiertas y MZOV. The company's headquarters is in Alcobendas, Community of Madrid, Spain. The company's U.S... |
construction | 1.01 | |
| Acerinox Acerinox Acerinox, S.A. is a stainless steel manufacturing conglomerate group based in Spain. The company was founded in 1970, and initially received technical support from the Japanese firm Nisshin Steel. Nisshin continues to hold approximately 15% of Acerinox as of April 2010. The headquarters are in... |
minerals, metals and transformation | 0.40 | |
| ACS Grupo ACS Actividades de Construcción y Servicios, S.A. is a Spanish company dedicated to civil and engineering construction, all types services and telecommunications. It is one of the leading construction companies in the world, with projects in many countries around the world... |
construction | 2.10 | |
| Amadeus IT Holding Amadeus IT Group Amadeus IT Group is a transaction processor for the global travel and tourism industry. The company is structured around two key related areas - its global distribution system and its IT Solutions business area... |
electronics and software | 1.35 | |
| ArcelorMittal | minerals, metals and transformation | 1.18 | |
| Banco Popular Banco Popular Español Banco Popular Español is the fourth largest banking group in Spain. The group consists of the following companies:*A national bank: Banco Popular Español... |
banks | 1.51 | |
| Banco Sabadell Banco Sabadell Banco Sabadell, S.A. is a major bank headquartered in Sabadell. Together with Banco de Asturias, Banco Urquijo, Sabadell Banca Privada, Banco Herrero, Solbank and ActivoBank, it is part of the Banco Sabadell Group, which is the fifth largest commercial banking group in Spain after Banco Santander,... |
banks | 1.17 | |
| Banco Santander | banks | 16.47 | |
| Bankia Bankia Bankia is a genus of ship-worms, marine bivalve molluscs of the family Teredinidae.-Species in the genus Bankia:* Bankia australis * Bankia bipennata * Bankia brevis... |
banks | 1.59 | |
| Bankinter Bankinter Bankinter, S.A., is a Spanish commercial bank. Bankinter is currently the sixth-largest listed banking group in Spain. The biggest individual shareholder in the company is Crédit Agricole, which acquired around 20% in late 2007... |
banks | 0.61 | |
| BBVA Banco Bilbao Vizcaya Argentaria Banco Bilbao Vizcaya Argentaria, S.A. is a multinational Spanish banking group. It was formed in 1999 from the merger of Banco Bilbao Vizcaya and Argentaria, both of which in turn had previously amalgamated three important banks in Spain, namely Banco de Bilbao, Banco de Vizcaya, Banco Exterior de... |
banks | 8.82 | |
| BME Bolsas y Mercados Españoles Bolsas y Mercados Españoles is the operator of all stock Markets and financial systems in Spain. BME has been a listed company since 14 July 2006 and an IBEX 35® constituent since July 2007. In the last few years it has become a reference in the sector in terms of solvency, efficiency and... |
investment services | 0.53 | |
| Caixabank | banks | 1.56 | |
| Ebro Foods | food and beverage | 0.62 | |
| Enagás Enagás Enagás, S.A. is a Spanish energy company which owns and operates the nation's gas grid. The firm also owns and operates three liquefied natural gas regasification terminals in the country, at Huelva, Barcelona and Cartagena. A fourth, at the port of El Musel, is currently being constructed and is... |
electricity and gas | 1.03 | |
| Endesa Endesa (Spain) Endesa, S.A. is the largest electric utility company in Spain. The firm, a majority-owned subsidiary of the Italian utility company Enel, has 10 million customers in Spain, with domestic annual generation of over 97,600 GWh from nuclear, fossil-fueled, hydroelectric, and renewable resource power... |
electricity and gas | 0.58 | |
| FCC Fomento de Construcciones y Contratas Fomento de Construcciones y Contratas is a leading Spanish construction company based in Barcelona. It is publicly traded and is part of the IBEX 35.Over 50% of the shares are owned by a company controlled by Esther Koplowitz and others.-History:... |
construction | 0.59 | |
| Ferrovial Ferrovial Ferrovial, S.A. is a Spanish multinational company involved in the design, build, financing, operation and maintenance of transport, urban and services infrastructure. It is a publicly-traded company and is part of the IBEX 35 market value-weighted stock market index... |
construction | 1.98 | |
| Gamesa Gamesa Corporación Tecnológica Gamesa Corporación Tecnológica , is a manufacturing company principally involved in the fabrication of wind turbines and the construction of wind farms.... |
manufacture and assembly of capital goods | 0.26 | |
| Gas Natural Gas Natural Gas Natural SDG, S.A., trading as Gas Natural Fenosa, is an energy company which operates primarily in Spain but also in such countries as Italy, Mexico, Colombia, Argentina, Puerto Rico and Morocco... |
electricity and gas | 2.38 | |
| Grifols Grifols Grifols, S.A. is a Spanish-based multinational pharmaceutical and chemical company. Principally a producer of blood plasma-based products, a field in which it is the European leader, the company also supplies devices, instruments and reagents for clinical testing laboratories.-Main products:Grifols... |
pharmacy products and biotechnology | 0.94 | |
| Iberdrola Iberdrola Iberdrola , headquartered in Bilbao, is a private utility with a global footprint and over 150 years of experience... |
electricity and gas | 9.35 | |
| Inditex Inditex Industria de Diseño Textil, S.A. , more commonly known as Inditex, is a large Spanish corporation and the world's largest fashion group. It is made up of almost a hundred companies dealing with activities related to textile design, production and distribution... |
textiles, clothing and shoes | 7.55 | |
| Indra | electronics and software | 0.56 | |
| International Airlines Group International Airlines Group International Airlines Group is a multinational airline holding company headquartered in London, United Kingdom and with its registered office in Madrid, Spain... |
transport and distribution | 1.04 | |
| Mapfre Mapfre Mapfre is a Spanish insurance company, based in Majadahonda, Madrid. The name comes from the old mutual origin of the company , but the company now only refers to itself as Mapfre... |
insurance | 0.91 | |
| Mediaset España Comunicación | communication and publicity | 0.44 | |
| Obrascón Huarte Lain Obrascón Huarte Lain Obrascón Huarte Lain, S.A. is an Spanish-based multinational construction and civil engineering company. The company is involved in infrastructure and commercial property construction, as well as homebuilding and the operation of toll road and other transport concessions. In the latter, the group... |
construction | 0.47 | |
| Red Eléctrica Red Eléctrica de España Red Eléctrica de España is a Spanish corporation which operates the nation's power transmission system and electricity grid.The company was created in 1985 by the Spanish Government-owned holding company Instituto Nacional de Industria to provide a unified national power grid.The firm was also... |
electricity and gas | 1.45 | |
| Repsol YPF Repsol YPF Repsol YPF, S.A. is an integrated Spanish oil and gas company with operations in 29 countries... |
petrol | 7.65 | |
| Sacyr Vallehermoso Sacyr Vallehermoso Sacyr Vallehermoso is a leading Spanish construction company based in Madrid. It is publicly-traded and is part of the IBEX 35 market value-weighted stock market index.-History:... |
construction | 0.22 | |
| Técnicas Reunidas | engineering and others | 0.42 | |
| Telefónica Telefónica Telefónica, S.A. is a Spanish broadband and telecommunications provider in Europe and Latin America. Operating globally, it is the third largest provider in the world... |
telecommunications and others | 20.64 |
- 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.
External links
- Official IBEX 35 information site
- IBEX 35 composition and prices from the Bolsa de Madrid
- IBEX 35 profile via Wikinvest