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.
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