The Bovespa Index (Portuguese: Índice Bovespa) 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 in January 2, 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 10/03/1983
- 2 – division by 10, on 12/02/1985
- 3 – division by 10, on 08/29/1988
- 4 – division by 10, on 04/14/1989
- 5 – division by 10, on 01/12/1990
- 6 – division by 10, on 05/28/1991
- 7 – division by 10, on 01/21/1992
- 8 – division by 10, on 01/26/1993
- 9 – division by 10, on 08/27/1993
- 10 – division by 10, on 02/10/1994
- 11 – division by 10, on 03/03/1997.
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Criteria for Inclusion in the Portfolio
The Ibovespa is composed by the stocks that must meet the criteria as stipulated by the exchange[1]:
- 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
References
External links
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