QUOTE AND NEWS
BusinessWeek  Jan 8  Comment 
Brazil’s Bovespa stock index fell for a second day, reversing an earlier gain, after a report showed the U.S. unexpectedly lost 85,000 jobs in December.
Bloomberg  Jan 4  Comment 
(Update3) PDG Realty SA Empreendimentos & Participacoes fell the most in two months, leading a slump among Brazilian homebuilders, after the company’s biggest shareholder said it may sell its entire stake in a secondary offering.
Mondo Visione  Jan 4  Comment 
BM&FBOVESPA announces the new rebalancing of the indices theoretical portfolios (Ibovespa, IBrX-50, IBrX, ITEL, IEE, INDX, IVBX-2, IGC, ITAG, MLCX, SMLL, ICON and IMOB), valid as of April 30, 2010. The indices are rebalanced each four months.
BusinessWeek  Jan 4  Comment 
Brazilian stocks jumped, sending the Bovespa index above 70,000 for the first time since June 2008, as improving global manufacturing bolstered the outlook for commodity demand and growth in Latin America’s biggest economy.
Bloomberg  Dec 30  Comment 
Brazilian stocks had their biggest annual rise in six years and the real gained the most since its 1993 creation as Latin America’s largest economy pulled out of a recession faster than most nations.
Fund my Mutual Fund  Dec 22  Comment 
We just purchased Brazilian chemical maker Braskem (BAK) last Friday and already the stock is up 9%; certainly not what I expected, especially since the Bovespa index has been weak since.  Somehow we caught a stroke of luck here - other...
Mondo Visione  Dec 16  Comment 
BM&FBOVESPA announces the second preview for the Ibovespa theoretical portfolio, which will be valid for the period of January 4 to April 30, 2010. The Exchange also announces the second previews of the other 12 calculated indexes.
Mondo Visione  Dec 9  Comment 
The Brazilian Securities, Commodities and Futures Exchange has authorized, as of 12/07/2009, Flexible Call and Put Options on iShares Ibovespa Index Fund (BOVA11) for trading. This new OTC derivatives contract allows financial institutions to...
Reuters  Nov 18  Comment 
Brazilian stocks closed with a loss on Wednesday, turning back morning gains after disappointing data from the United States dampened investor hopes for a global economic recovery.
Reuters  Nov 17  Comment 
Brazilian stocks seesawed in early trading on Tuesday as investors remained wary of pumping more money into stocks that have already risen significantly this year.



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The Bovespa Index (IBovespa) is the main indicator of the average performance of the BM&FBovespa exchange. The IBovespa covers more than 80% of the trades and approximately 70% of the market capitalization of the exchange[1].

Calculations and Weighting

The IBovespa uses the Negotiability index to calculate the criteria and weighting of the stocks on the index. The Negotiability Index helps us understand the representation of the stock in the cash market on the exchange, which allows us to ascertain the participation of every component of the IBovespa. This is similar to the Free float method used by various indices using the market capitalization method for calculating the index level.

  • Negotiabiliy Index = Image: Ibovespai_Image19.gif[2]
    • ni = number of trades carried out for stock "i"
    • vi = value created from the trades of stock "i"
    • N = Total number of trades on the BM&F Bovespa
    • V = Total value created by the N number of trades in the BM&F Bovespa


Composition

Criteria for Inclusion in the Portfolio

The Ibovespa is composed by the stocks that must meet the criteria as stipulated by the exchange[3]:

  • They should have been traded on the exchange in the past twelve months.
  • To be included in the group of stocks whose negotiability indexes added represent 80% of the total value of all individual negotiability indexes.
  • The trading share of the stock should be higher than 0,1% of the total share flow in the exchange.
  • More than 80% of the shares of the stock must be traded on the exchange.


List of companies

The composition of the IBovespa, as of October 22, 2008:[4]

Ticker Symbol Company Name Weighting
ALLL11 ALL AMER LAT 1.459
AMBV4 AMBEV 1.11
ARCZ6 ARACRUZ 0.753
BTOW3 B2W VAREJO 1
BVMF3 BMF BOVESPA 3.944
BBDC4 BRADESCO 3.55
BRAP4 BRADESPAR 1.339
BBAS3 BRASIL 2.443
BRTP3 BRASIL T PAR 0.291
BRTP4 BRASIL T PAR 0.445
BRTO4 BRASIL TELEC 0.422
BRKM5 BRASKEM 0.667
CCRO3 CCR RODOVIAS 0.676
CLSC6 CELESC 0.136
CMIG4 CEMIG 1.614
CESP6 CESP 1.354
CGAS5 COMGAS 0.137
CPLE6 COPEL 0.707
CSAN3 COSAN 0.733
CPFE3 CPFL ENERGIA 0.551
CYRE3 CYRELA REALT 1.25
DURA4 DURATEX 0.712
ELET3 ELETROBRAS 0.869
ELET6 ELETROBRAS 0.929
ELPL6 ELETROPAULO 0.694
EMBR3 EMBRAER 0.718
GFSA3 GAFISA 0.98
GGBR4 GERDAU 2.866
GOAU4 GERDAU MET 0.869
GOLL4 GOL 0.989
ITAU4 ITAUBANCO 3.193
ITSA4 ITAUSA 2.309
JBSS3 JBS 0.583
KLBN4 KLABIN S/A 0.398
LIGT3 LIGHT S/A 0.232
LAME4 LOJAS AMERIC 1.27
LREN3 LOJAS RENNER 0.957
NATU3 NATURA 0.722
NETC4 NET 1.25
BNCA3 NOSSA CAIXA 0.341
PCAR4 P.ACUCAR-CBD 0.618
PRGA3 PERDIGAO S/A 1
PETR3 PETROBRAS 2.821
PETR4 PETROBRAS 15.387
RDCD3 REDECARD 0.869
RSID3 ROSSI RESID 0.582
SBSP3 SABESP 0.435
SDIA4 SADIA S/A 1.04
CSNA3 SID NACIONAL 3.265
CRUZ3 SOUZA CRUZ 0.465
TAMM4 TAM S/A 0.818
TNLP3 TELEMAR 0.464
TNLP4 TELEMAR 1.18
TMAR5 TELEMAR N L 0.249
TLPP4 TELESP 0.19
TCSL3 TIM PART S/A 0.236
TCSL4 TIM PART S/A 0.816
TRPL4 TRAN PAULIST 0.336
UGPA4 ULTRAPAR 0.407
UBBR11 UNIBANCO 2.427
USIM3 USIMINAS 0.565
USIM5 USIMINAS 3.036
VCPA4 V C P 0.684
VALE3 VALE R DOCE 3.271
VALE5 VALE R DOCE 12.639
VIVO4 VIVO 0.741

References

  1. IBovespa Calculation
  2. Calculating the Negotiability Index for the IBovespa
  3. Methodological Aspects
  4. IBovespa Portfolio Calculation
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