Ibex-35 will have to make some changes in the coming days due to the collapse of one of the stocks in the index. The company Abengoa has lost 60% of its price in a few days. So, the replacement doesn’t want to wait any longer. Merlin Properties and Cellnex presented their candidates to join the Ibex 35. On December 10, the Technical Advisory Committee (TAC) index has its regular meeting to decide the composition of the index. Analysts expect developments. There will at least change. The index now consists of 34 stocks after exclusion of Abengoa, and the market does not rule out another move.
“In our opinion, the TAC meeting confirmed the departure of Abengoa and possibly excluding FCC or ArcelorMittal, while candidates with more ballots to come and Merlin are Cellnex Properties”, Bankinter analysts explained in a note to clients we had access to.
These experts do not rule out possible OHL as the index. Gonzalo Sanz, Mirabaud Securities, shuffle the same names, “Merlin come replacing Abengoa as it meets the requirements of volume and market capitalization necessary to become a membership. Cellnex also meet these conditions and may be above FCC’s classification of traded securities. ”
Met expectations, it would be the first time that both companies are part of the main stock index in Spain. In addition, for Merlin it would be the debut of a REIT (Socimi) in this club. This company went public in June 2014. It has risen by 48% this year and has a market capitalization of 3,800 million.
Cellnex is the telecommunications subsidiary of Abertis and debuted on the stock market six months ago. Since it’s started, the titles of the company gained 21.4% bringing its market value to almost 4,000 million.
There are two criteria for deciding who enters the Ibex. One is the volume in euros in the control period (in this case from June to November inclusive). It also considers other factors to ensure the quality of the volume: the number of block trades (non-market), potential changes in the shareholding. Second, they can only form part of the Ibex whose average capitalization value exceeds 0.3% of the average capitalization of the selected indexe.
Entering or leaving the Ibex 35 has an impact on the price. In the growing market mutual funds in their portfolios that replicate the composition of the indices and whenever a change occurs have to sell or buy the equivalent to the weight that value has on the Ibex there.