IBEX Index: Currency and Key Statistics

Overview

The IBEX Index, or the Índice Bursátil Español, is a stock market index that measures the performance of the 35 most liquid companies listed on the Bolsa de Madrid, the Spanish stock exchange. It is a capitalization-weighted index, meaning that the market capitalization of each company is used to determine its weight in the index.

Key Statistics

• Base Date: December 31, 1989
• Base Value: 3,000 points
• Currency: Euro
• Number of Constituents: 35
• Sector Weightings: Financials (23.8%), Energy (18.7%), Industrials (17.2%), Consumer Staples (16.7%), Telecommunications (12.3%)
• Average Market Cap: €16.5 billion
• Dividend Yield: 3.6%

Historical Performance

The IBEX Index has had a volatile history, with periods of strong growth followed by sharp declines. The index reached its all-time high of 15,945.70 points on November 8, 2007, during the global financial crisis. It then plunged to a low of 6,543.20 points on March 9, 2009.

Since then, the index has recovered some of its losses but remains well below its pre-crisis levels. In 2023, the IBEX Index has fluctuated between 9,000 and 10,000 points.

Factors Affecting the IBEX Index

Several factors can affect the performance of the IBEX Index, including:

• Economic growth: The health of the Spanish economy is a major driver of the IBEX Index. When the economy is growing, companies tend to perform better, and the stock market rises.
• Political stability: Spain has experienced political instability in recent years, which has weighed on the stock market. Investors are cautious about investing in countries with political uncertainty.
• Interest rates: Interest rates set by the European Central Bank (ECB) can impact the IBEX Index. Higher interest rates can make it more expensive for companies to borrow money, which can slow economic growth and hurt stock prices.
• Global economic conditions: The IBEX Index is also affected by global economic conditions. When the global economy is growing, the demand for Spanish goods and services increases, which can boost the stock market.

Investment Considerations

The IBEX Index is a diversified index of the largest and most liquid companies in Spain. It provides investors with exposure to the Spanish economy and can be a good way to diversify a portfolio.

However, investors should be aware of the risks associated with investing in the IBEX Index. The index is volatile and can experience sharp declines, especially during periods of economic or political uncertainty.