Like many countries in the world, the Italian stock market also has its own benchmark index. This is the FTSE MIB, which is representative of the Italian economy. If you want to invest in this index online, here is everything you need to know about its composition.
The FTSE MIB is the main index of the Italian stock market. It was previously known as the S&P MIB. Since June 2009, it has been managed by the Financial Times Stock Exchange Group. The index was created to track the performance of stocks listed on the Milan Stock Exchange.
In addition, the FTSE MIB is the benchmark for the Italian stock markets. This index includes the 40 largest stocks listed on the Italian stock exchange. These correspond to the companies included in the index. They are selected according to a weighting principle proportional to the size of their market capitalisation.
However, this selection is made taking into account the liquidity of the securities as well as the importance of the sector of activity. In addition, the 40 stocks in the FTSE MIB alone account for over 80% of the national market capitalisation.
The principle used to calculate the FTSE MIB index is based on the free float method. The free float method helps to determine the number of shares available in a market to be bought or sold. In comparison, the total market capitalisation is the calculation of all available and outstanding shares.
Furthermore, the value of each stock is constantly changing. As a result, the market capitalisations making up the FTSE MIB are also constantly changing. It should be noted that the free float market capitalisation only takes into account the shares of the companies present on the stock market. It does not therefore include all the shares of these companies.
To trade any of the stocks that make up the FTSE MIB, you must wait for the Italian Stock Exchange to open. You can trade every day from Monday to Friday, from 9am to 5.30pm. As Italy is the issuing country of this index, its quotation currency is the Euro.
The FTSE MIB comprises 40 companies listed on the Milan Stock Exchange. They are selected from different sectors and according to a specific principle. The aim is to create a well-balanced mix in which the Italian economy and market are well represented.
Among the stocks that make up this index, various sectors of activity are represented. Among the stocks that make up this index, various sectors of activity are represented, such as car manufacturing, banks, energy, etc.
Here is the list of these companies with their market capitalisation on 27 February 2023.
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