How does the stock market IBEX 35 works?

The IBEX 35 is the main stock market index in Spain and is made up of 35 more liquid companies listed on the four national stock exchanges. It is important to know their history and how they operate in Spain, in order to understand the macroeconomics.

The IBEX 35 is the stock exchange index taken as a reference in the Spanish stock market. It is made up of 35 companies which are listed on the Spanish Stock Exchange Interconnection System (SIBE) and operate on the stock exchanges of Barcelona, Bilbao, Valencia and Madrid. In addition, it is important to note that the IBEX 35 is compared to the index provided by the S&P 500, where not all the companies that make up the index have the same weight or significance at a global economic level.

History of the IBEX 35

The IBEX 35 began operating on 14 January 1992, and on 10 May 2010 was the largest daily increase in its history. On that day it rose by 14.43%, which came about thanks to the approval of the European rescue plan after having suffered the worst second week of the index in its history.

In this regard, it is important to highlight that the daily drop in the IBEX 35 was due to the referendum on the United Kingdom’s permanence in the European Union. Thus, on 24 June 2016 it suffered losses of over 12%.

In the last 5 years, it had the following variations

What does the IBEX 35 consist of?

In the first instance, it is important to mention that the companies with the greatest liquidity are all those whose shares can be immediately converted into real money as well as being the subject of greater purchases and sales on a daily basis. Therefore, beyond the economic sector which they represent, the IBEX 35 is only responsible for carefully selecting the best companies operating on the Spanish stock exchange.

In order to join the IBEX 35, specific requirements must be met, such as having an average capitalisation of over 0.30% during the months of the control period. In this way, a committee of experts in economic and specifically financial matters meet to analyse the stock market liquidity of the different Spanish companies in order to determine which companies will form part of the IBEX 35. In addition to their liquidity, as mentioned above, other aspects are also assessed, such as trading volume and capitalisation.

Which companies are part of the IBEX 35?

The companies which form part of the IBEX 35 are as follows:

  • Abengoa
  • ACS
  • Amadeus IT Group
  • ArcelorMittal
  • Banco Bilbao Vizcaya Argentaria
  • Banco Sabadell
  • Banco Santander
  • Bankia
  • Bankinter
  • Bolsas y Mercados Españoles
  • Caixabank
  • DIA
  • Enagás
  • Ferrovial
  • Fomento de Construcciones y Contratas
  • Gamesa Corporación Tecnológica
  • Gas Natural
  • Grifols
  • Iberdrola
  • Inditex
  • Indra Sistemas
  • International Airlines Group
  • Jazztel
  • Mapfre
  • Mediaset España Comunicación
  • Obrascón Huarte Lain
  • Red Eléctrica de España
  • Repsol
  • Sacyr
  • Técnicas Reunidas
  • Telefónica
  • Viscofan