This Wednesday is one of the two annual meetings that the committee in charge of reviewing the composition of the Ibex 35 considers “follow-up”. They take place in March and September. And there are few occasions in which changes in the index are announced on them, something that they usually reserve for those of June and December.
However, there are two Ibex securities, CIE Automotive and Viscofan , which arrive with a dangerous negotiation that could cost them their place in the future. Laboratorios Rovi is the main candidate to steal their position, while Sacyr does not move away from the fight. Logista , meanwhile, is also close.
To become part of the main index of the Spanish stock market, the Ibex 35, is not just a question of size. Unlike other indicators such as the EuroStoxx and now also the German Dax -which try to bring together the largest companies by capitalization-, the Ibex seeks to group the securities with more liquidity , those where it is easier to buy and sell shares thanks to, among other things, to a higher trading volume. According to this ranking, CIE and Viscofan would be left out of the top 35 companies, ahead of Rovi and Sacyr ( see graph ).
But although this is the main criterion that governs the composition of the Ibex, the members of the committee ensure that the securities have a minimum capitalization . With a nuance: only the securities that circulate freely on the stock market and are not in the hands of shareholders through large shareholding packages are taken into account.
Income 4: “We do not expect any change in the composition of the Ibex 35 at this meeting”
The market value adjusted to these free or free float shares was a great barrier for Laboratorios Rovi. According to BME data as of June 21, only a 40% coefficient is taken into account to account for its capitalization, which left it out of the index. Of course, just a day later, the founding family made a new sale of shares that would raise this coefficient to 60% – that percentage is applied when the free float exceeds 30% -.
“With the accelerated placement of 3% of the capital last June by the López-Belmonte family, the free floatit has increased to 31.77% facilitating its future entry into the Ibex 35 “, they acknowledge in Renta 4. But, for now, they believe that it will not be taken into account in this review.” We do not expect any change in the composition of the selective ” this Wednesday, they point out.
Courage does not come to the meeting at its best. Rovi’s actions were harshly punished by blocking Japan’s Moderna vaccines manufactured at the Spanish company’s facilities. After ensuring that they are not harmful to health and explaining the causes of pollution, in Rent 4 they see “justified the recovery to current levels (zone of 56-58 euros).
In any case, the return to the maximum zone seems to us complicated in the short term, understanding that we should see more progress in the execution of the strategic plan. ” In Sabadell, on the other hand, they believe that the falls “offer a clear opportunity”, valuing the company at 63 euros per share (below, of course, its maximums).
Other future changes
Sacyr’s return to the Ibex, after its expulsion from the index in 2016, is not being an easy task. It has already managed to once again be among the 35 most liquid stocks on the Spanish stock market, but it still needs to give its capitalization a further boost. The company would suppose a weighting of 0.28% in the total of the Ibex in the last six months, compared to the 0.30% minimum required.
For Logista this is not the problem. Its size is more than enough to enter the index. Its duties are to improve liquidity, as it ranks 38th, just behind CIE and Viscofan.
These last two are not the only Ibex firms that run the risk of being excluded. The capitalization requirement may be grounds for exclusion, and Meliá remains on the ropes for it. Its weight is 0.24%, after trading again at levels similar to January.
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