A complete guide on the financial index of Spain IBEX 35

IBEX 35 - Spanish index

Every country in the world has its own primary benchmark in its financial market. Japan has the Nikkei while Hong Kong has the Hang Seng index. In France, the CAC is the main equity market while the DAX serves as the prime index in Germany.

In Spain, the IBEX 35, or Indice Bursatil Español, is the benchmark stock market index that runs the country’s securities markets. It was introduced on January 14, 1992. The index is calculated and administered by Sociedad de Bolsas (which is a subsidiary of BME). BME is a firm that runs the entire securities market of Spain.

To further understand its components, history and record highs and lows, let us delve deeper into this Spanish benchmark, which has been in a major ups and downs throughout the years.

This index is a market capitalization-weighted index which compares thirty-five most liquid stocks of Spain. Trading for these stocks is done through the Madrid Stock Exchange General Index and is published twice a year. Trading on futures contracts and options on the index IBEX 35 is offered by MEFF (which is a subsidiary of famous BME).

History of IBEX 35 index

The iteration, dates, and major ups and downs faced by IBEX 35:

1) 14 January 1992: This is an important date in the history IBEX 35 index. The index was published for the first time with a base value of about 3,000 points
2) October 1992: The index hit the record low of about 1873.58
3) 2000-2007: These were the years of excellent performance resulted due to domestic economic growth. For more than seven years, the index stamped its class in the European markets as it outperformed its major Western counterparts. The robust domestic economic growth pushed IBEX in the green territory.
4) November 2007: The index hit the all-time high value of 15945.70
5) 2007-2009: The year of the global financial crisis resulted in the high volatility in the market. In January 2008, the benchmark index recorded its historic fall and rise at the same month. On the 21st, it closed down 7.5% and three days after, it surged to its highest rally at 6.95%.
6) March 2009: The index fell under 7,000 points
7) 2010-2011: The index faced a depressing time due to economic problems in Spain and the crisis in Eurozone
8) June 2012: The index remained at 6,065 points. In the wake of Prime Minister Mariano Rajoy victory in the general elections, the stock market of Spain was the worst performing in the whole world. The IBEX 35 registered a 15.36% decline in that year.
9) 2014-2017: The index value surged back to 10,000 points. Fast forward to 2016, the benchmark is now rapidly gaining momentum, reaching a 52 week high of 11 686.40, and is poised to end the year on a high note.

Key Components of IBEX 35

As mentioned about the Spanish bourse include stocks of the top thirty-five, most liquid firms traded on the Madrid Stock Exchange General Index. For determining if there are any variations to make the data is reviewed twice per year.

These major firms mentioned in the benchmark are placed based on their trading volume (in Eros). They are further ranked as per their performance in the past six months with at least 0.3% of a benchmark's total market cap. The majority of sectors included in IBEX 35 are construction, food, electronics, manufacturing, banking, mining, and real estate. The method of their weightings is totally different from that of other European equity markets.

Top 35 companies of Spain in the IBEX 35 index 2020

The largest firms in Spain have a vital influence on the world's economy and the county. The top 35 most traded Spain firms that make up the IBEX 35 index are listed below with their sectors, activities, and useful links.

1) Ence
• Sector: Basic raw materials
• Industry: Paper and paper products
• Website of the company: ence.es
• Total Market Cap: $ 888.6 Million
• Stock symbol: ENC
ENC is a firm specialized in the conversion of wood into paper pulp. Apart from its involvement in forest management and paper pulp, ENC also produces solar thermal energy and renewable energy through agroforestry combustion.

2) Mediaset España
• Sector: Communication Services
• Industry: Broadcasting
• Website of the company: mediaset.es
• Total Market Cap: $ 1.527 Billion
• Stock symbol: TL5
Mediaset España, commonly known as TL5, is a media and television network production firm. It is one of the largest television networks in Spain. Channels operated by TL5 include Cuatro, Telecinco, Boing, Factoría de Ficción, Divinity, and several others.

The largest shareholder of TL5 is Mediaset (a famous Italian company)

3) Meliá Hotels
• Sector: Consumer Cyclical
• Industry: Lodging
• Website of the company: melia.com
• Total Market Cap: $ 1.652 Billion
• Stock symbol: MEL
Meliá Hotels International is a famous chain of hotels. It operates in more than 40 countries and has 370 hotels under the brand name Gran Meliá, Meliá, ME by Meliá, Paradisus, TRYP by Wyndham, Innside by Meliá, Club Meliá, and Sol Hotels.

4) Indra Sistemas
• Sector: Technology
• Industry: Information Technology Services
• Website of the company: indracompany.com
• Total Market Cap: $ 1.841 Billion
• Stock symbol: IDR
Indra Sistemas is a defense system and information technology firm. It also works in three types of business: electronic defense equipment, automatic and simulation test equipment, and information technologies.

5) Viscofan
• Sector: Consumer Cyclical
• Industry: Packaging and Containers
• Website of the company: viscofan.com
• Total Market Cap: $ 2.296 Billion
• Stock symbol: VIS
It is a leading company of IBEX 35, which is specialized in manufacturing meat products. It provides a wide range of collagen, cellulose, plastic, and fibrous items treated through mechanical and chemical processing. It works successfully in more than a hundred countries across the globe.

6) Acerinox
• Sector: Basic Materials
• Industry: Steel
• Website of the company: acerinox.es
• Total Market Cap: $ 2.398 Billion
• Stock symbol: ACX
Another big firm of IBEX 35 is Acerinox operates in major parts of the world, including Spain, the US, Europe, Chile, Malaysia, South Africa, and Argentina. It is one of the largest steel firms in the world.

7) MásMóvil
• Sector: Communication Services
• Industry: Telecom Services
• Website of the company: masmovil.es
• Total Market Cap: $ 2.502 Billion
• Stock symbol: MAS
It works in the communication service sector with its subsidiaries, LlamaYA, Pepephone, Hits Mobile, Yoigo, MoreMóvil, and Lebara Spain.

8) CIE Automotive
• Sector: Consumer Cyclical
• Industry: Auto Parts
• Website of the company: cieautomotive.com
• Total Market Cap: $ 2.505 Billion
• Stock symbol: CIE
The auto parts firm in the IBEX 35 index is CIE Automotive, which manufactures and distributes sub-assemblies and components for the automotive producer.

9) Banco Sabadell
• Sector: Financial Services
• Industry: Banks—Regional
• Website of the company: grupbancsabadell.com
• Total Market Cap: $ 4.613 Billion
• Stock symbol: SAB
Banco Sabadell is one of the famous and largest banks in Spain. It comprises some specialized and local bank brands, associated banks, and subsidiaries.

10) Bankia
• Sector: Financial Services
• Industry: Banks—Regional
• Website of the company: bankia.com
• Total Market Cap: $ 5.124 Billion
• Stock symbol: BKIA

11) Bankinter
• Sector: Financial Services
• Industry: Banks—Regional
• Website of the company: bankinter.com
• Total Market Cap: $ 5.28 Billion
• Stock symbol: BKT

12) Acciona
• Sector: Industrials
• Industry: Industry: Engineering & Construction
• Website of the company: acciona.com
• Total Market Cap: $ 5.486 Billion
• Stock symbol: ANA

13) Merlin Properties
• Sector: Real Estate
• Industry: REIT—Diversified
• Website of the company: merlinproperties.com
• Total Market Cap: $ 5.985 Billion
• Stock symbol: MRL

14) Inmobiliaria Colonial
• Sector: Real Estate
• Industry: REIT—Office
• Website of the company: inmocolonial.com
• Total Market Cap: $ 6.138 Billion
• Stock symbol: COL

15) Enagás
• Sector: Utilities
• Industry: Utilities—Regulated Gas
• Website of the company: enagas.com
• Total Market Cap: $ 6.341 Billion
• Stock symbol: ENG

16) Mapfre
• Sector: Financial Services
• Industry: Insurance—Specialty
• Website of the company: mapfre.es
• Total Market Cap: $ 7.157 Billion
• Stock symbol: MAP

17) ACS Group
• Sector: Industrials
• Industry: Engineering & Construction
• Website of the company: grupoacs.com
• Total Market Cap: $ 8.997 Billion
• Stock symbol: ACS

18) Red Eléctrica de España
• Sector: Utilities
• Industry: Utilities—Regulated Electric
• Website of the company: ree.es
• Total Market Cap: $ 9.714 Billion
• Stock symbol: REE

19) Siemens Gamesa
• Sector: Industrials
• Industry: Specialty Industrial Machinery
• Website of the company: siemensgamesa.com
• Total Market Cap: $ 10.315 Billion
• Stock symbol: SGRE

20) IAG
• Sector: Industrials
• Industry: Airlines
• Website of the company: iairgroup.com
• Total Market Cap: $ 13.329 Billion
• Stock symbol: IAG

21) ArcelorMittal
• Sector: Basic Materials
• Industry: Steel
• Website of the company: corporate.arcelormittal.com
• Total Market Cap: $ 13.565 Billion
• Stock symbol: MTS

22) Cellnex Telecom
• Sector: Communication Services
• Industry: Telecom Services
• Website of the company: cellnextelecom.com
• Total Market Cap: $ 14.603 Billion
• Stock symbol: CLNX

23) CaixaBank
• Sector: Financial Services
• Industry: Banks—Regional
• Website of the company: caixabank.com
• Total Market Cap: $ 15.926 Billion
• Stock symbol: CABK

24) Grifols
• Sector: Healthcare
• Industry: Drug Manufacturers—General
• Website of the company: grifols.com
• Total Market Cap: $ 18.37 Billion
• Stock symbol: GRF

25) Repsol
• Sector: Energy
• Industry: Oil & Gas Integrated
• Website of the company: repsol.com
• Total Market Cap: $ 19.239 Billion
• Stock symbol: REP

26) Ferrovial
• Sector: Industrials
• Industry: Infrastructure Operations
• Website of the company: ferrovial.com
• Total Market Cap: $ 20.797 Billion
• Stock symbol: FER

27) Naturgy
• Sector: Utilities
• Industry: Regulated Gas
• Website of the company: naturgy.com
• Total Market Cap: $ 22.885 Billion
• Stock symbol: NTGY

28) Aena
• Sector: Industrials
• Industry: Airports and Air Services
• Website of the company: enaire.es
• Total Market Cap: $ 25.275 Billion
• Stock symbol: AENA

29) Endesa
• Sector: Utilities
• Industry: Utilities—Regulated Electric
• Website of the company: endesa.com
• Total Market Cap: $ 26.215 Billion
• Stock symbol: ELE

30) BBVA
• Sector: Financial Services
• Industry: Diversified
• Website of the company: bbva.com
• Total Market Cap: $ 30.842 Billion
• Stock symbol: BBVA

31) Amadeus
• Sector: Technology
• Industry: Information Technology
• Website of the company: amadeus.com
• Total Market Cap: $ 31.111 Billion
• Stock symbol: AMS

32) Telefónica
• Sector: Communication Services
• Industry: Telecom Services
• Website of the company: telefonica.com
• Total Market Cap: $ 31.466 Billion
• Stock symbol: TEF

33) Banco Santander
• Sector: Financial Services
• Industry: Banks—Diversified
• Website of the company: santander.com
• Total Market Cap: $ 59.202 Billion
• Stock symbol: SAN

34) Iberdrola
• Sector: Utilities
• Industry: Diversified
• Website of the company: iberdrola.es
• Total Market Cap: $ 62.304 Billion
• Stock symbol: IBE

35) Inditex
• Sector: Consumer Cyclical
• Industry: Apparel Retail
• Website of the company: inditex.com
• Total Market Cap: $ 95.143 Billion
• Stock symbol: ITX

Trading hours for IBEX 35

All the companies which come under IBEX 35 index are listed on the key Spanish stock exchange (Bolsa de Madrid), which remains open from Monday to Friday. The main hours to pursue trading is between 9:00 and 17:35 (01:00 + GMT) and five days a week.

You can trade the stock of the IBEX 35 index with HFTrading from Monday to Friday. It is a leading name that provides trading on various assets, including forex, crypto, commodity, indices, stocks, etc., at just $250. Visit the broker's site for more details.

How is the IBEX 35 index calculated?

The IBEX 35 index is similar to other famous stock market indices. It keeps track of various individual firms and variations in their share prices throughout the trading day.

It is a Euro-denominated index that calculates the real-time data during the trading hours of MSE (Madrid Stock Exchange) within the European time horizon.

The index measures its elements as per their financial market capitalization, adjusted through a free-float factor. Hence, the largest component enjoys a higher weighting percentage, whereas smaller companies have a little lower impact. However, the IBEX 35 index has no limit for top weighing for one constitutes, which is in some other stock market indices. The index is examined twice a year in June and December by Spanish firm BME.

The Bottom Line

Traders like to follow the IBEX 35 index because it can provide exposure to significant daily fluctuations and substantial financial market price volatility. It also works as an underlying asset for numerous financial derivative instruments. Further, it is known for its volatility and volume and lures sundry day traders trying to harvest profit from small price shifts over short intervals.

To trade companies (which fall under this index) through CFDs, you can visit an authentic brokerage firm HFTrading. The process for opening an online trading account with the broker is instant and straightforward.


Leave a Reply

Your email address will not be published. Required fields are marked *