The IBEX 35 (an acronym of Iberia 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 comprises the 35 most liquid Spanish stocks traded in the Madrid Stock Exchange General Index, which are reviewed twice annually. Trading on options and futures contracts on the IBEX 35 is provided by MEFF (Mercado Español de Futuros Financieros), another subsidiary of BME.
Since the turn of the century, the index has outperformed many of its Western peers, driven by relatively strong domestic economic growth which has 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.
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 European 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 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.
|Company||IGBM sector||Ticker symbol||Index weighting (%)1|
|Abengoa||engineering and others||0.35|
|Abertis||car parks and motorways||1.96|
|Acerinox||minerals, metals and transformation||0.92|
|Cintra||car parks and motorways||0.56|
|Criteria CaixaCorp||portfolio and holding||1.24|
|Enagás||electricity and gas||1.04|
|Endesa||electricity and gas||0.40|
|Gas Natural||electricity and gas||2.41|
|Iberdrola||electricity and gas||10.31|
|Iberdrola Renovables||renewable energy||1.01|
|Iberia||transport and distribution||0.35|
|Inditex||textiles, clothing and shoes||2.65|
|Indra||electronics and software||0.66|
|Obrascón Huarte Lain||construction||0.37|
|Red Eléctrica||electricity and gas||1.36|
|Técnicas Reunidas||engineering and others||0.58|
|Telecinco||communication and publicity||0.29|
|Telefónica||telecommunications and others||19.55|
|Unión Fenosa||electricity and gas||2.19|
- After bi-annual adjustment at close on 30 June 2008.
Source - Index constituents of IBEX 35 at the closing of: 30/06/2008 after adjustment, Sociedad de Bolsas.