Definition

FTSE MIB Index

What is the FTSE MIB Index?

The FTSE MIB, or Milano Indice di Borsa, is the benchmark securities exchange record for the Borsa Italiana, the Italian public stock trade, which supplanted the MIB-30 in September 2004. The index comprises the 40 most-exchanged stock classes on the trade. Standard and Poor's managed the list from its beginning till June 2009, after which the obligation was passed to the FTSE Group, which is 100% possessed by the Borsa Italiana's parent organisation London Stock Exchange Group.

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Understanding the FTSE MIB Index

The FTSE MIB is a benchmark index for the Italian markets. Catching around 80% of the homegrown market capitalisation, the record is included exceptionally liquid organisations in Italy. The FTSE MIB Index has 40 companies and looks to reproduce the overall sector weights of the Italian securities exchange. The index comprises the universe of stocks exchanging on the Borsa Italiana (BIt) MTA and MIV markets. The list has been made to be reasonable for derivatives exchanging, as a benchmark list for Exchange Traded Funds (ETFs), and for following huge capitalisation stocks in the Italian market.

The FTSE MIB Index is a market capitalisation-weighted after changing constituents for float. Singular constituent loads are covered at 15%. An FTSE MIB Price Index and an FTSE MIB Total Return Index are determined in EUR progressively. The FTSE MIB portrays itself as "the essential benchmark list for the Italian value markets." It catches around 80% of homegrown market capitalization. Organizations on the index incorporate Campari, Fiat Chrysler, Ferrari, Italgas, Telecom Italia, Mediaset, and UniCredit.

Borsa Italiana's benchmark record was founded on 31 December 1992 and was named as the "COMIT 30" and had a base worth of 100 points. The index set a record-breaking record during its meeting on 7 March 2000, when it arrived at 51,273 points after setting a record high of 51,093 points the other day. The best market session was recorded on 13 October 2008, when it acquired 11.49%. On the other hand, it abruptly shed 16.92% on 12 March 2020 when the Covid-19 pandemic led to economic concerns.

The base worth of the FTSE MIB Index was set at the level of the MIB 30 Index at the end of exchanging on 31 October 2003 (10,644). Historical data for the FTSE MIB Index goes back to 31 December 1997 (24,402). FTSE MIB Banks 15% Capped Index values were set at 10,000 at the end of exchanging on 21 September 2012. The constituents of the FTSE MIB Banks 15% Capped Index are those constituents of the FTSE MIB Index with an ICB1 Supersector characterisation of Banks (ICB code 8300) (New ICB Banks 3010). Other FTSE MIB Supersector 15% capped indices might be determined liable to request. The constituents of the FTSE MIB Index and the FTSE MIB Banks 15% Capped Index are covered at 15% when the quarterly review is done. The capping methodology is run on the Monday following the second Friday of March, June, September, and December, and they depend on Friday closing. They are executed after exchanging the third Friday of March, June, September, and December. Any constituents whose loads are more noteworthy than 15% are capped at 15%. The weight of all lower positioning constituents is expanded correspondingly. Loads of lower positioning constituents are then checked, and on the off chance that they surpass 15%, they are additionally covered at 15%. This interaction is rehashed until no constituent weight exceeds 15%. The weight of each stock in the FTSE MIB Index and the FTSE MIB Banks 15% Capped Index is assessed as far as its changed market capitalization versus the record and is re-examined at every quarterly survey.

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The index will be looked into on a quarterly premise in March, June, September, and December utilising market information at the end of business on a Monday a month preceding the successful survey date. Any constituent changes will be executed after the end of business on the third Friday of the audit month.

The FTSE MIB Index's support comprises corporate activities, occasional updates to the record, and changes because of the opening made by the cancellation of constituents of the list. FTSE Russell completes the upkeep movement with the target of limiting the turnover among file constituents. In case of a list change or corporate activity bringing about a shift in shares in issue or free float that influences the market capitalisation of the record, the divisor is acclimated to guarantee the progression of the FTSE MIB Index. The new divisor is acquired by isolating the new Adjusted Market Capitalisation by the Adjusted Market Capitalisation before corporate activities, then multiplying it with the old divisor which was being used.

The quantity of constituents in the index is broken down at every quarterly audit (March, September, June, and December) to evaluate whether the list efficiently addresses the market. On the off chance that FTSE Russell, with the help of the FTSE Italia Index Series Technical Committee, chooses the number of constituents that should be changed, a change will be made after giving the market a prior notification.

The FTSE MIB Index utilises prices from real exchanges on MTA and MIV electronic offer exchanging stage of the Borsa Italiana during Official Market Hours. The last index value is determined utilizing Closing Auction costs. If there is no Closing Auction cost for a specific constituent, the previous value exchanged toward the finish of the Continuous Trading stage. Borsa Italiana's Market Supervision division utilizes Borsa Italiana's end value to estimate K components to be applied to the index for corporate activities. Borsa Italiana's Reference value has no impact on the FTSE MIB Index computation.

The FTSE MIB Index is determined utilising a base-weighted whole procedure. This implies the level of an index mirrors the total float changed the market worth of the entirety of the constituent stocks comparative with a specific base period. The absolute market worth is controlled by increasing the cost of its supply by the quantity of offers in issue (net of depository shares) in the wake of adapting to float. An Indexed number is utilized to address the aftereffect of this computation to make the worth simpler to work with and track after some time. The record is determined progressively.

Equity addresses the absolute worth of the offers included in the basket. The entire Italian trade records, notwithstanding the FTSE MIB, are: the FTSE Italia All-Share, which consists of the portions of the FTSE MIB, additionally incorporates those of the FTSE Italia Mid Cap and FTSE Italia Small Cap; FTSE Mid Cap, made out of the portions of the best 60 generally liquid and most noteworthy promoted organizations recorded on the MTA and MIV advertises yet excluded from the FTSE MIB file; FTSE Italia Small Cap, which incorporates portions of little organizations barred from the FTSE MIB and FTSE Italia Mid Cap indices; FTSE Italia Star, which includes the portions of the STAR fragment of the MTA market; FTSE Aim Italia, which consists of all offers exchanged on the AIM Italia market.

The 40 companies that make up the FTSE MIB are currently:

  • A2A
  • Amplifon
  • Atlantia
  • Azimut Holding
  • Banca Generali
  • Banco Bpm
  • Bper Banca
  • Brembo
  • Buzzi Unicem
  • Campari
  • Cnh Industrial
  • Diasorin
  • Enel
  • Eni
  • Exor
  • Ferrari
  • Finecobank
  • Generali
  • Intesa Sanpaolo
  • Italgas
  • Juventus Football Club
  • Leonardo
  • Mediobanca
  • Moncler
  • Pirelli & C.
  • Poste Italiane
  • Prysmian
  • Recordati
  • Saipem
  • Salvatore Ferragamo
  • Snam
  • Stellantis
  • Stmicroelectronics
  • Telecom Italia
  • Tenaris
  • Terna – Rete Elettrica Nazionale
  • Unicredit
  • Unipol
  • UnipolSai

Eligibility for securities

The eligibility for securities to get listed are as follows:

  • The securities are selected from the Italian universe to cater to the need of the Italian investors.
  • All securities traded on Borsa Italiana's MTA and MIV markets, except for saving and preferred shares, are eligible for getting included in the FTSE MIB Index.
  • If the company's ordinary shares are not listed, then the savings or preferred shares of the organisation can be eligible.
  • All foreign listed companies have to be compliant with Blt requirements to disseminate information if they want to qualify for eligibility.
  • Companies which have their Business as Investment Trusts are not eligible for inclusion.

Recently recorded organisations are qualified for incorporation in the list at the quarterly survey giving they have traded at least 20 days. Recently recorded organisations whose capitalisation aremore prominent than or equivalent to 3% of the current market capitaliszation of the FTSE Italia All-Share Index are added to the index following a phenomenal modification, applied at close on the principal day of posting.

Frequently Asked Question’s

How are suspended companies treated?

The companies which are suspended and identified by the FTSE Russell and the treatment will be done as follows:

  • If a company is suspended, it will be reviewed. All the reasons for suspension will be considered for suspension. After the review, if it is finalised to remove the listed company, a notice will be served to the company. A notice period of 20 days will be given in which the company will be removed at zero value after the period.
  • If the instrument has not started trading at the end of the suspension period, it can be removed with a notice period of two days.
  • If a company has declared itself bankrupt without giving anything to its shareholders, the LTP will adjust to zero and will be delisted from the index with a notice.
  • If the notice period is expiring the week before the index review, the company will be removed.
  • In situations where the company has a significant weight in the index, the FTSE Russell indicates that a market value can be identified for the company being suspended. The removal may take place at the market value determined rather than zero.
  • If a company has been removed and the company's trading is restored, the company can only be reviewed for getting included in the index after 12 months for its removal. It will, therefore, be treated as a new issue.
  • In case of mergers and acquisitions, if two companies are getting merged and both are a part of the index, the newly merged company will be a constituent of the index, and a new position will be included according to the reserve list created to fill the gap created because of the merger.