The IBEX 35® is the benchmark stock market index in the Spanish stock market, composed of the 35 most liquid companies with the largest market capitalization in Spain. This index reflects the performance of the shares of these companies and is a key indicator for evaluating the economic and financial health of Spain.
What is the IBEX 35®?
The IBEX 35® was created in 1992 and since then has been used as a benchmark for hundreds of financial products. The companies that form part of the IBEX 35® are selected on the basis of their liquidity and market capitalization. Each index in the series serves as the underlying for countless products linked to the Spanish market, making it the flagship of the Spanish Stock Exchange, BME (Bolsas y Mercados Españoles), in terms of financial information.
Which companies make up the IBEX 35®?
The IBEX 35® is made up of the 35 most liquid stocks in the Spanish continuous market. Its composition is reviewed on a quarterly basis by the Technical Advisory Committee (CAT). This index includes the most representative companies from various sectors, such as banking, energy, telecommunications, among others.
At BME we offer an updated list of the companies that are in the IBEX 35®, with the prices and quotes of the day.
What is the process for selecting stocks for the IBEX 35®?
The Technical Advisory Committee (CAT) is in charge of the stock selection process for the IBEX 35®. It is composed of independent professionals and is independent of the Board of Directors and any other governance-related function of the administrator, whose oversight role is permanent and effective in order to ensure aspects of the development of the benchmark indices managed by BME.
The IBEX 35® has two ordinary reviews each year. In addition, quarterly monitoring reviews are carried out to assess significant changes in the liquidity of the securities. There may also be extraordinary reviews if there are relevant events that justify additional adjustments. At the end of this process, the 35 most liquid and representative companies of the Spanish continuous market are selected.
Requirements to be part of the IBEX 35®
The following conditions must be met for a company to be included in the IBEX 35®:
- Trading in SIBE: It must be admitted for trading in the Stock Exchange Interconnection System (SIBE).
- High liquidity: The company must be among the most traded.
- Minimum capitalization: The average capitalization must be greater than 0.30% of the average capitalization of the index.
- Trading per session: It must be traded in at least one third of the sessions.
The requirements for inclusion in the IBEX 35® are explained in more detail in the Technical Regulations for the Composition and Calculation of IBEX Indices.
IBEX 35® calculation method
The IBEX 35® is a free float-adjusted market capitalization weighted index. It does not include the payment of dividends or other shareholder remuneration formulas.
The formula used to calculate the index is specified in detail in the Technical Regulations for the Composition and Calculation of IBEX Indices.