Report by Bankinter
Next Thursday, 11 June, the Technical Advisory Committee (CAT) will hold a meeting to review the composition of the Ibex 35. On this occasion, there could well be changes. Técnicas Reunidas could join the index, replacing Acciona Energía.
What do we think will happen at the CAT meeting?
On this occasion, there could be changes. Técnicas Reunidas is the best-placed candidate to join the index. Its trading volume exceeds that of Acciona Energía, a current constituent of the index. However, there is a drawback to making this move. Técnicas’ market capitalisation is slightly below the level required by the Committee. Specifically, 0.28% of the index’s average market capitalisation during the six months prior to the meeting, compared to the required 0.30%.
Although Acciona Energía’s market capitalisation also fails to meet this requirement, and by a wider margin, this does not necessarily constitute grounds for exclusion, whereas it is a necessary criterion for a stock’s inclusion in the index. In any case, after nearly two years without any changes, we expect the CAT to finally announce the aforementioned change.
IBEX 35: POSSIBLE CHANGES
What are the CAT’s decision-making criteria?
Firstly, the CAT calculates the trading volume in euros on the order book market during the review period, i.e. the six months prior to the meeting. Furthermore, it considers various factors to ensure the quality of this volume. Among other things, it analyses aspects such as the number of trades executed or potential changes in shareholding.
Secondly, only those securities whose average market capitalisation exceeds 0.30% of the index’s average market capitalisation during the aforementioned review period may be included in the Ibex 35. In any case, the technical rules take into account the free float of the different securities and, to this end, establish different coefficients to be applied to their average market capitalisation in such a way as to penalise those with a lower free float.
