IBEX 35


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, the company which runs Spain's securities markets. It is a market capitalization weighted index comprising the 35 most liquid Spanish stocks traded in the Madrid Stock Exchange General Index and is reviewed twice annually. Trading on options and futures contracts on the IBEX 35 is provided by MEFF, another subsidiary of BME.

History

The IBEX 35 was inaugurated on January 14, 1992, although there are calculated values for the index back to December 29, 1989, where the base value of 3,000 points lies.
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 November 8, 2007.
The week of the 2008 economic 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 January 21, 2008, the second biggest fall in the Spanish equity market since 1987, and rose a record 6.95% three days later.

Rules

Selection

The composition of the IBEX 35 is reviewed twice per year by the so-called Technical Advisory Committee, which consists of "representatives of the stock exchanges and derivatives markets, as well as... renowned experts from the academic and financial fields". If any changes are made, they come into effect the following trading day after the third Friday of the rebalance month In general, at each review, the 35 companies with the highest trading volume in Euros 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.

Weighting

The IBEX 35 is a capitalization-weighted index. The market cap used to calculate the weighting of each constituent is multiplied by a free float factor 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.
As of 2015, international funds based abroad owned 43% of the index, vs. 16% in 1992. Such rate of foreign investment was about 5% above the EU average.

Calculation

The index value 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 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.

Components

As of March 21, 2019, the following 35 companies make up the index:
TickerCompanyHeadquartersSectorISINWeighting
ANAAccionaAlcobendas, MadridConstruction0,70
ACXAcerinoxMadridSteel0,55
ACSACS GroupMadridConstruction2,41
AENAAenaMadridAirports2,75
AMSAmadeus IT GroupMadridTourism6,97
MTSArcelorMittalLuxembourg City, LuxembourgSteel1,14
SABBanco SabadellAlicanteFinancial Services1,65
SANBanco SantanderSantander, CantabriaFinancial Services14,97
BKIABankiaValenciaFinancial Services1,35
BKTBankinterMadridFinancial Services1,48
BBVABBVABilbao, BiscayFinancial Services7,62
CABKCaixaBankValenciaFinancial Services4,88
CLNXCellnex TelecomMadridTelecommunications0,86
CIECIE AutomotiveBilbao, BiscayAutomotive0,43
ENGEnagásMadridNatural Gas1,16
ENCENCEMadridCellulose0,29
ELEEndesaMadridElectricity1,60
FERFerrovialMadridInfrastructures Management2,79
GRFGrifolsBarcelonaPharmaceuticals2,11
IAGIAGMadrid / London Aviation3,22
IBEIberdrolaBilbao, BiscayElectricity8,41
ITXInditexArteixo, A CoruñaClothing10,34
IDRIndraAlcobendas, MadridIT Services0,34
COLInmobiliaria ColonialMadridReal Estate0,84
MAPMapfreMajadahonda, MadridInsurance1,00
TL5Mediaset EspañaMadridMass Media0,35
MELMeliá HotelsPalma de Mallorca, Balearic IslandsTourism0,36
MRLMerlin PropertiesMadridReal Estate1,15
NTGYNaturgyMadridNatural Gas1,92
REERed Eléctrica de EspañaAlcobendas, MadridElectricity1,98
REPRepsolMadridOil and Gas5,34
SGRESiemens GamesaZamudio, BiscayWind Power0,95
TRETécnicas ReunidasMadridEngineering0,31
TEFTelefónicaMadridTelecommunications7,22
VISViscofanTajonar, NavarreMeat Casings0,59

Record values

The index reached the following record values:

Annual Returns

The following table shows the annual development of the IBEX 35 since 1992.
YearClosing levelChange in Index
in Points		Change in Index
in %
19922,344.57
19933,615.221,270.6554.20
19943,087.68−527.54−14.59
19953,630.76543.0817.59
19965,154.771,524.0141.97
19977,255.402,100.6340.75
19989,836.602,581.2035.58
199911,641.401,804.8018.35
20009,109.80−2,531.60−21.75
20018,397.60−712.20−7.82
20026,036.90−2,360.70−28.11
20037,737.201,700.3028.17
20049,080.801,343.6017.37
200510,733.901,653,1018.20
200614,146.503,412.6031.79
200715,182.301,035.807.32
20089,195.80−5,986.50−39.43
200911,940.002,744.2029.84
20109,859.102,080.90−17.43
20118,566.30−1,292.80−13.11
20128,167.50−398.80−4.66
20139,916.701,749.5021.42
201410,279.20362.803.66
20159,544.50−734.70−7.15
20169,352.10−192.10−2.01
201710,043.90691.807.40
20188,539.90−1,504.00−14.97
20199,549.201,009.3011.82

Sectorial Indices

All changes are due to market capitalisation unless stated otherwise.