The Barcelona Stock Exchange, which is part of the Bolsas y Mercados Españoles (BME) group, has proceeded to review the composition and weightings of the companies included in the BCN PROFIT-30, BCN ROE-30 and BCN PER-30 indices, based on to the results obtained by the aforementioned companies at the end of 2018. In this family of indices, the profits of the companies, an essential magnitude in their evolution, are part of the weighting criteria, providing a vision of the behavior of the market of Spanish securities that is useful and constitutes an interesting reference for portfolio management.
El BCN PROFIT-30 index, made up of the shares of the 30 companies included in the IBEX 35 with the highest profits, does not register changes in its composition. Regarding the weights Banco Santander, BBVA, ArcelorMittal, Telefónica and Inditex are the securities with the greatest weight, as they are the companies with the highest profit figures in absolute terms.
The BCN ROE-30 index, made up of the shares of the 30 companies included in the IBEX 35 with the highest profit / equity ratio (ROE) and which, therefore, offer a higher return on the indicated equity, registers the incorporation of Técnicas Reunidas in substitution of Banco Sabadell. In this index the highest weights correspond to CIE Automotive, Amadeus IT Group and Inditex, which are the companies with the highest ROE.
Stock market indices in Barcelona
For its part, the íBCN PER-30 Index, made up of the shares of the 30 companies included in the IBEX 35 that present the lowest price / earnings ratio (PER), does not suffer variations in its composition. The most weighted stocks in this index are Arcelor Mittal, International Consolidated Airlines Group (IAG) and Merlin Properties SOCIMI, which have the lowest PER. The composition of the aforementioned indices of the Barcelona Stock Exchange, as of March 4, 2019, can be consulted on the website of the Barcelona Stock Exchange (www.borsabcn.es), Indices-Quotes section, sub-section Composition BCN Indices (www.borsabcn.es/esp/indices/BBarna/CompositionIndices.aspx).
This is proof that in Spanish equities there is life beyond the selective index of the Spanish stock market, the Ibex 35. With some reference sources that can be completely unknown for a good part of the small and medium investors and that can be very profitable at a certain moment. Although it is also true that they are small capitalization securities that show less activity in terms of the volume of their contracting. With the problems that these types of operations usually generate to make the available savings profitable.
Stock markets in Spain
At the moment there are four terms where titles are exchanged between financial agents and which are Madrid, Barcelona, Bilbao and Valencia. Not all of them are the same and they contemplate a wide divergence in terms of the volume of their shares. With levels that can be around levels very close to 80% and that you must take into account at the precise moment of developing your operations in the national equity markets.
On the other hand, another aspect to take into account with respect to the listed places is that which has to do with their values. The same companies are not represented in all of them. Not much less, although this factor affects mainly the small and mid-cap securities. Which is where the greatest differences between the representatives of the Spanish stock market are reflected. Beyond other considerations of a technical nature and perhaps also from the point of view of its fundamentals. Not surprisingly, this is a very plural market and this is an aspect that we do not really know when opening positions in its most relevant stock indices.
General Index of the Madrid Stock Exchange
It is the stock index where most of the operations in the national equity markets are concentrated and all the securities listed in other national markets are represented. It is the point of reference for making investments and also for foreign investors since it brings together the cream of the listed companies in our closest environment. With securities of all levels, from the most relevant to those with the smallest capitalization. That is, and so that it can be better understood, the catchall of the Spanish bag par excellence.
While on the other hand, it should also be mentioned that the General Index of the Madrid Stock Exchange is very important for its high liquidity to open and close positions in these financial assets. It is one of the stock indexes where the operations of a good part of the small and medium investors are reflected. Noted above all for the high capitalization of the companies that comprise them and for being constituted with securities that provide great liquidity. That is, it is very easy to adjust your entry and exit prices.
The dividend index
Perhaps many investors do not know it at the moment, but the securities that distribute dividends among their shareholders are integrated in an index of these characteristics. Of course, it is very easy to operate in it since they all have a common denominator and that is none other than the distribution of this charge on behalf of investors. There are the best Spanish equity companies and all of them with constant growth in their profits. It is one of the reference sources to open positions on the stock market without assuming excessive risks in the movements made.
On the other hand, the so-called dividend index is highly recommended due to its special characteristics since there is no room for improvisation. In the sense that they are not companies that offer surprises to investors who take positions at any time in their lives. If not, on the contrary, it provides high security to the investors' portfolio since they offer a fixed and guaranteed performance Every year, whatever happens in the equity markets. Beyond other technical considerations and maybe also from the point of view of its fundamentals.
The alternative market
There is no doubt that the alternative stock market is another alternative for investors with a higher risk appetite. Not surprisingly, recently created companies are integrated and have barely been listed on the equity markets for a long time. The MaB It has adapted all the existing procedures so that these companies can be listed on the market, but without giving up an adequate level of transparency. For this, the new figure of the so-called registered advisor has been introduced, specialized professionals to help companies throughout the process, from entering the market to the day-to-day of their listing.
On the other hand, the MaB expands the universe of companies to investors. This allows a diversification of current portfolios by investing in new companies and sectors. It should also be emphasized above all that the Alternative Stock Market (MaB) is a multilateral trading system (SMN). It is directed and managed by Bolsas y Mercados Españoles (BME) and supervised by the National Securities Market Commission (CNMV). Where it provides companies with simple and efficient access to the stock market. It is a platform designed for small businesses with expansion projects can benefit from the advantages of the market: financing, visibility, liquidity, valuation, etc.
No presence of new markets
In contrast, there are no traces of technology markets in national equities after the so-called new markets index has disappeared. It was a reference source for the few technological values on the stock market in our country. While on the other hand, the Spanish stock market is premiering this Friday. Bolsas y Mercados Españoles (BME) has created new strategic indices on the Ibex 35 based on information contained in derivatives of futures and options on the selective in which the main companies of the Spanish Stock Market are listed.
Where it is necessary to underpin the idea that the main object of the same is that of measure implied market volatility. In order to verify certain investment strategies through products traded on the BME derivatives market. It is a somewhat more complex sector index that is aimed at investors who provide more experience in their operations in financial markets. Not surprisingly, the risk in your operations is significantly higher and depends on many factors in shaping the prices of financial assets.
Other options are more specific and among which stands out the Vibex or known as an index that measures fear in investment or even another very innovative one such as the Ibex 35 Buywrite that replicates the buyer positions within the selective index of the Spanish stock market. And in which it is much more complex to operate due to its special characteristics that are suitable for all retail investors. But for a very special group of them.