BM&FBOVESPA launches stock index to measure returns on Brazilian financial sector

BM&FBOVESPA launches stock index to measure returns on Brazilian financial sector

 

18/12/09

The Brazilian Securities, Commodities and Futures Exchange will begin, on 4 January 2010, to calculate and disclose the BM&FBOVESPA Financial Index, in real-time. This is the Exchange’s 15th stock index and it will trade under the ticker symbol IFNC.

The IFNC index will measure the returns on stocks from the most representative companies of the Brazilian financial sector. These include banks, financial institutions, asset management firms, leasing companies, credit card issuers, and insurance companies, among others. The index’s theoretical composition will be reevaluated every four months.

The new index will enable the diversification of investment strategies, as well as allow the possibility of launching new financial derivatives, like Exchange Traded Funds (ETFs). Currently, the Exchange offers four ETFs that track the performance of Ibovespa, IBr-X 50, Mid-Large Cap, and Small Cap Index.

Basic Criteria

The index portfolio includes stocks whose added negotiability indexes represent 98% of the total value of all individual negotiability indexes, during the twelve months preceding the reevaluation. They must also have a minimum of 95% trading session presence throughout the period.

The same company can have more than one type of stock included in the portfolio, as long as each stock type meets separately the inclusion criteria.
Companies with less than twelve months of listing are eligible only if they have more than six months of trading, and if they have a minimum of 95% trading session presence measured in the six months preceding the reevaluation.

The definitive portfolio will be divulged on January 4th, 2010, together with BM&FBOVESPA’s other indexes.