Bovespa Index - Ibovespa
The Bovespa Index is the main indicator of the Brazilian
stock market’s average performance. Ibovespa’s relevance comes from two facts: it
reflects the variation of BM&FBOVESPA’s most traded stocks and it has tradition, having
maintained the integrity of its historical series without any methodological change
since its inception in 1968.
What is the BM&FBOVESPA Index?
It is the current value, in Brazilian currency, of a theoretical stock portfolio
constituted in 02/01/1968 (base value: 100 points), by a hypothetical investment.
No additional investment has been made since this date, apart from the reinvestment
of the distributed benefits (such as dividends, subscription rights and stocks bonuses).
In that way, the index reflects not only the variation of the stock prices but also
the impact of the distribution of benefits, and is considered an indicator that
evaluates the total return of its components stocks.
Extremely reliable and with a methodology easily understandable by the market, the
BM&FBOVESPA Index represents faithfully the average performance of the main traded stocks
and the profile of the cash market operations carried out on BM&FBOVESPA.
(*) The index has suffered, only for disclosure
purposes and without any loss to its calculation methodology, the following changes:
1 – division by 100, on 10/03/1983;
2 – division by 10, on 12/02/1985;
3 – division by 10, on 08/29/1988;
4 – division by 10, on 04/14/1989;
5 – division by 10, on 01/12/1990;
6 – division by 10, on 05/28/1991;
7 – division by 10, on 01/21/1992;
8 – division by 10, on 01/26/1993;
9 – division by 10, on 08/27/1993;
10 – division by 10, on 02/10/1994;
11 – division by 10, on 03/03/1997.
Ibovespa’s basic objective is to be an average indicator of the market performance.
For that purpose, its composition aims at reflecting as close as possible the real
configuration of the cash market operations (round lot) on BM&FBOVESPA.
In terms of liquidity:
The stocks that integrate Ibovespa’s theoretical portfolio represent more than 80%
of the number of trades and the financial value registered on BM&FBOVESPA’s cash market
In terms of market capitalization:
The issuing companies of the stocks that compose the BM&FBOVESPA Index theoretical portfolio
are responsible, in average, for approximately 70% of the sum of all BM&FBOVESPA’s companies’
Disclosure and Monitoring
BM&FBOVESPA calculates Ibovespa in real time, considering the prices of the last trades
carried out in the cash market (round lot) with the stocks that compose its portfolio.
Its disclosure is made through BM&FBOVESPA’s diffusion system and is also retransmitted
by many "vendors", thus making it possible to monitor the index performance "on
line" in any part of Brazil or of the world.
Ibovespa’s reliability comes from its simple calculation methodology, and also from
the availability of its data to the investor public. The market recognizes the index’s
positive characteristics, and this recognition is expressed by the fact that Ibovespa
is the only performance indicator of the Brazilian stocks that has a liquid future
market (one of the biggest index future market of the world).
Security, Reliability and Independence
BM&FBOVESPA is responsible for Ibovespa’s management, calculation, disclosure and maintenance.
This responsibility assures the strict compliance with the rules and technical procedures
contained in the index methodology.