Stock market indices are made up of those securities that have the best and highest capitalization in terms of liquidity and frequency when listed on the stock exchange.
Stock market indices are made up of those securities that have the best and highest capitalisation in terms of liquidity and frequency when listed on the stock exchange. In Spain, the main indices are the IGBM and the IBEX 35, although it is true that the Valencia, Bilbao and Barcelona stock exchanges create their own indices.
The most important one, and the one we are going to focus on, is the IBEX 35. This is the name given to the main Spanish stock market index, which groups bosnia and herzegovina b2b leads together the 35 IGBM stocks, which have the highest trading volume, capitalisation and frequency of listing on the same stock exchange.
In order to compose the IBEX35, a Technical Advisory Committee carries out an analysis based on criteria of liquidity, trading volume and capitalisation. It is composed, in a simple way, of the 35 most important companies at a national level, once their weight in the stock market has been assessed.
The predominant criteria that are analyzed are:
The dividend yield , which is the result of dividing the expected dividend by the unit price of each of the shares.
Capitalization is the number of shares in circulation multiplied by the unit price of each of them .
Unit price of each share, volume of shares, percentage variation and in euros.
The PER , which is an indicator calculated in reverse by which the long-term profitability is obtained in constant values.
Today, the main companies that make up the IBEX 35 are: Amadeus, BBVA, CaixaBank, Endesa, Iberdrola, Inditex, Indra, Repsol, Santander, Telefónica…
We cannot give references for prices as the data is updated daily and is therefore constantly changing and evolving. The biggest historical rise of the IBEX 35 took place in 1992, when there was a rise of 14.4% due to a European rescue plan. Similarly, in October 2008, at the height of the crisis, the biggest fall in history took place, falling to 8,997 points.
To calculate the IBEX, a mathematical formula is followed based on the capitalization of the securities that comprise it, adjusted to coefficients that are applied as a measure to avoid certain financial operations, such as a capital reduction, that could significantly affect its price. Bringing into consideration the fluctuations it undergoes, to calculate its value on a given day, we must start from the previous session, multiplying that value by the percentage obtained by dividing the sum of the capitalizations of the 35 companies by the sum of each value in the previous session.
We have to start from the previous session, multiplying that value by the percentage obtained by dividing the sum of the capitalizations of the 35 companies by the sum of each value in the previous session-blogAmong the requirements that companies must meet to be candidates to join the list of IBEX 35 companies, are the following minimums:
The average capitalisation of the company must be at least 0.30% higher than the average capitalisation of the IBEX 35 during the control period, which is the six months between one meeting and the next. In other words, small-cap companies could never be part of the IBEX.
The second requirement to be met is negotiation , which establishes that the value must have been negotiated during at least one third of the sessions that will be held during the control period.
In the absence of the aforementioned trading requirement, the stock can expect to be included in the rankings if it is among the 20 with the largest capitalization.
