The Italy 40 index, also known as the FTSE MIB, is a significant player in the realm of Italian finance. As the pivotal yardstick for the Borsa Italiana, Italy’s premier stock exchange, this index comprises the top 40 heavyweights of the Italian market.
These elite stocks, prized for their substantial capitalisation and liquidity, form the backbone of the Italian trading world.
An Overview of the Italy 40 Index
At the heart of the Italian stock exchange, the Borsa Italiana, stands the Italy 40 Index, renowned as the benchmark for Italy’s equity markets. Comprising the 40 biggest capitalised and liquid stocks enlisted on the Borsa Italiana, this index serves as a reflection of the nation’s economic vitality.
Otherwise known as the FTSE MIB, the Italy 40 index includes approximately 80% of the domestic market capitalisation, which makes sense when you learn that it includes giants like Campari, Ferrari, Fiat Chrysler, and UniCredit.
A Brief History of the Italy 40 Index
The Italy 40 Index, originally known as the S&P MIB, has undergone a remarkable evolution since its launch in 1997.
Until 2009, the Italy 40 index was managed by Standard & Poor’s (S&P). After that, it came under the umbrella of the FTSE group, which is owned entirely by the London Stock Exchange (LSE).
The London Stock Exchange had merged with Borsa Italiana two years previously, in 2007, making it the parent company of the Italian stock exchange.
In 2017, the Italy 40 Index boasted a market capitalisation of an impressive €2.37 trillion, further proving its significance within Italy’s financial world.
4 Random Facts About the Italy 40 Index
#1: A remarkable day in its history: 6 March 2000, witnessed both the intraday and closing highs soaring to an impressive 50,109.00.
#2: When the index emerged on 1 June 2009 under new management, a total of 16 companies out of the original 40 maintained their presence on the list.
#3: Enel takes the crown as the most capitalised company on the Italy 40 Index, flaunting a hefty €77.3 billion (as of February 18, 2021), leaving a notable €5 billion gap from the runner-up, Eni, at €69.88 billion.
#4: The Italy 40 index employs a free-floating, capitalisation-weighted methodology – similar to the ,Germany DAX 40 index and some of the world’s most popular indices, including the S&P 500 and the FTSE 100.
In the ever-evolving landscape of Italian finance, the Italy 40 Index serves as a dynamic barometer, reflecting the nation’s economic vitality. From its inception under Standard & Poor’s to its current chapter overseen by the London Stock Exchange Group, it continues to guide and reflect Italy’s financial pulse.
