SAO PAULO, Brazil, Aug. 29 /PRNewswire-FirstCall/ -- Two new indicators will be introduced on the Brazilian stock market September 1, 2008: the BM&FBOVESPA MidLarge Cap Index and the BM&FBOVESPA Small Cap Index. Their portfolios will measure stock returns by market value. Under the tickers MLCX and SMLL, respectively, the indices will have their portfolios reevaluated at the end of each four-month period.
The creation of the MLCX and SMLL indices meets market demand of the market for an official benchmark that uses market capitalization as the basic criterion for segmenting portfolios. The IBrX 50 index, by comparison, initially segregates a portfolio of 50 stocks with the highest negotiability indices and an 80% trading session presence in the preceding twelve months, and then weighs the participation of the portfolio according to the market value of the outstanding shares (free float).
The BM&FBOVESPA MidLarge Cap and BM&FBOVESPA Small Cap indices were elaborated in accordance with international standards, allowing them to serve as a reference for investors and portfolio managers.
Eligible Stocks
Companies that together represent 85% of the Exchange's total market value are eligible to participate in the MidLarge Cap Index. The remaining companies that are not included in this group are eligible to participate in the Small Cap Index. Companies that are issuers of Brazilian Depository Receipts (BDRs) or those which are under judicial reorganization or bankruptcy cannot be included in either Index. After being segmented by market value, the stocks that are eligible to participate in the indices must meet the criteria for inclusion in a list of stocks whose negotiability indices added together represent 98% of the total value of all individual negotiability indices. These stocks must also have had a 100% trading presence measured in the twelve months preceding the portfolio's validity date. Companies with less than twelve months of listing will be eligible if they have a 100% trading session presence measured in the six months preceding the analysis.
For more information: http://www.bmf.com.br/
