IBEX 35: A Guide to Spain's Stock Market Index
What is the IBEX 35?
The IBEX 35 is the primary stock market index for Spain. It tracks the performance of the 35 most liquid and widely traded stocks on the Bolsa de Madrid, the Spanish stock exchange. The index is a capitalization-weighted index, meaning that the companies with the largest market capitalizations have a greater impact on the index value than companies with smaller market capitalizations.
History of the IBEX 35
The IBEX 35 was launched on January 14, 1992, with a base value of 3,000 points. The index has since grown significantly, reaching an all-time high of 15,945.70 points on November 7, 2007. The index has been impacted by a number of factors over the years, including the global financial crisis of 2008 and the COVID-19 pandemic.
Composition of the IBEX 35
The IBEX 35 is composed of companies from a variety of sectors, including banking, energy, telecommunications, and retail. The largest sector represented in the index is banking, with five of the ten largest companies in the index being banks. The other major sectors represented in the index are energy, telecommunications, and retail.
Performance of the IBEX 35
The IBEX 35 has performed well over the long term, with an average annual return of over 7% since its inception. However, the index has been volatile in recent years, with significant declines during the global financial crisis and the COVID-19 pandemic.
Factors Affecting the IBEX 35
The IBEX 35 is influenced by a number of factors, including:
- Economic growth in Spain
- Interest rate decisions by the European Central Bank
- Global economic conditions
- Corporate earnings
Investing in the IBEX 35
There are a number of ways to invest in the IBEX 35, including:
- Buying shares of individual companies listed on the index
- Purchasing an exchange-traded fund (ETF) that tracks the index
- Investing in a mutual fund that invests in Spanish stocks
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