Bovespa Index

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The Bovespa is the stock index made up of the 50 most liquid companies listed on the Sao Paulo Stock Exchange.

It is the most important index in Brazil and is a good indicator of the state of its economy. The index was created in 1968, with a base value of 100 points and has been adjusted cumulatively over time. Among the most important companies that comprise it, we can highlight Banco do Brasil, Petrobras, Santander Brasil, Eletrobrás, Oi, Copel, Telefónica, Vale, Ultrapar, América Latina Logística, BM & F Bovespa, etc….

IBOVESPA calculation

It is a cumulative index, it is reviewed on a quarterly basis and it is made up of those company shares that account for 80% of the volume traded in the last 12 months and that were traded for 80% of the days they were listed.

In terms of market capitalization, the companies that issue the shares that make up the theoretical portfolio of this index are responsible for 70% of the market capitalization of all companies with shares traded on the Sao Paolo Stock Exchange.

The Sao Paolo Stock Exchange calculates its index in real time considering the latest quotes made in the market, being responsible for the calculation, management, maintenance and dissemination of the Ibovespa.

On the other hand, those companies that meet the following criteria may be included in the index:

  • The trading volume has to be greater than 0.1% of the total trading volume.
  • We reiterate this second aspect, the stock must have been traded in 80% of the total trading sessions.

The identifying ticker of the index to be traded is IBOV: IND, having an approximate value in 2015 of close to 48,000 points.

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