Bolsas y Mercados Españoles

The Stock Exchange General Index of Valencia is calculated based on the Laspeyres index, for three main reasons: because of the ease of calculation; because of the characteristics of the Spanish Stock Market and finally, as a benchmark for other indices of the rest of the Stock Exchanges in Spain. The General Index uses as criteria, the volume and frequency of trading. In this way, on 31 December every year the values are selected which that will make up the index the following year.

On January 1, 2005 a new sector classification came into effect. This was the result of consensus between the Spanish Stock Exchanges with “Sociedad de Bolsas”. The reason for this change was to establish a new sector classification, taking into account the fact that our General index has to include all sectors.

In the new sector classification, we opted for a division into two levels, "Sector" and "Subsector" as the best framework in which to place the publicly traded companies based on their core business. Therefore, once the values belonging to the index were chosen, we classified them in into subsectors.

The next step to consider is the weight of the different values in their sector within their subsector and, finally, in the General Index.

Since the index should reflect the tension in the supply and demand for funds, certain financial transactions, such as capital increases, dividends or capital splits, mean that the index has to be revised. To correct it, we use an adjustment factor that, depending on the operation, will consider the theoretical value of the preferential rights of subscription or the amount of dividends paid.

In the case of the Valencia Stock Exchange, there are three indices. A "Short Index" which is based on100 points from December 31 of the previous year; a "Long Index” or more commonly called "General", which is based on 100 points too, but from the fixed reference date of 31 December 1985; and a "Long Index with base 100 dating from December 31, 2004". This was the new classification which came into force on January 2005.



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