Índice Bovespa
Encyclopedia
The Bovespa Index is an index of about 50 stocks that are traded on the São Paulo Stock, Mercantile & Futures Exchange (Bovespa: BOlsa de Valores do Estado de São PAulo).

The index is composed by a theoretical portfolio with the stocks that accounted for 80% of the volume traded in the last 12 months and that were traded at least on 80% of the trading days. It's revised quarterly, in order to keep its representativeness of the volume traded and in average the components of Ibovespa represent 70% of the all the stock value traded.

IBOVESPA is an accumulation index. Its index number represents the present value of a portfolio begun on 2 January 1968, with a starting value of 100 and taking into account share price increases plus the reinvestment of all dividends, subscription rights and bonus stocks received.

The index has been adjusted as follows:
  • 1 – division by 100, on 3 October 1983
  • 2 – division by 10, on 2 December 1985
  • 3 – division by 10, on 29 August 1988
  • 4 – division by 10, on 14 April 1989
  • 5 – division by 10, on 12 January 1990
  • 6 – division by 10, on 28 May 1991
  • 7 – division by 10, on 21 January 1992
  • 8 – division by 10, on 26 January 1993
  • 9 – division by 10, on 27 August 1993
  • 10 – division by 10, on 10 February 1994
  • 11 – division by 10, on 3 March 1997.

Criteria for inclusion in the portfolio

The Ibovespa is composed by the stocks that must meet the criteria as stipulated by the exchange:
  • They should have been traded on the exchange in the past twelve months.
  • To be included in the group of stocks whose negotiability indexes added represent 80% of the total value of all individual negotiability indexes.
  • The trading share of the stock should be higher than 0,1% of the total share flow in the exchange.
  • More than 80% of the shares of the stock must be traded on the exchange.


For a list of the components of the index, check the article List of companies traded at Bovespa.

See also


External links

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