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BOVESPA And FIESP Introduce INDX – Industrial Sector Index

Date 04/07/2006

On July 3rd, BOVESPA and the Industry Federation of São Paulo (FIESP) launched the INDX – Industrial Sector Index.

This new index is the result from a partnership between FIESP and BOVESPA, and has been designed to measure the performance of the most significant stocks of the industrial sector – an important segment in the Brazilian economy.

Criteria for Inclusion in the Portfolio

The index portfolio will include the stocks that meet cumulatively the

  • to be issued by a company of one of the sub-segments of the industrial sector traded on BOVESPA;
  • to be among the 150 best classified stocks considering the negotiability index, measured in the twelve months preceding the reevaluation;
  • to have a trading session presence of at least 70%, measured in the twelve months preceding the reevaluation. Weighting Criteria

    INDX will measure the return on a theoretical portfolio consisting of the securities that meet all the criteria described above, which are weighted according to the respective outstanding shares' market value (free float) of the type included in the portfolio; it means that those shares belonging to the controlling group will be excluded.

    The company's participation in INDX portfolio (considering all types of the company's stocks) will not be higher than 20%, at the moment of its periodical reevaluations. In that case, adjustments will be made so that the company's weight is adequate to such limit.

    The index will be rebalanced on January 2nd, May 1st and September 1st, as the other BOVESPA's indices.

    Additional information on the INDX’s current portfolio and methodology are available on www.bovespa.com.br/Market/MarketIndexes/def_indxi.htm