Portuguese Stock Index 20

PSI 20
base data
Country	Portugal
Stock exchange	Euronext Lisbon
ISIN	PTING0200002
WKN	965508
symbol	PSI20
RIC	^ PSI20
Bloomberg code	PSI20 <INDEX>
category	Stock index
Type	Price index
family	Euronext

The Portuguese Stock Index 20 (PSI-20) consists of the 18 (until 2014: 20) companies with the highest market capitalization and the highest share turnover on the Lisbon Stock Exchange , which has been a member of the pan-European trading platform Euronext since 2002 .

calculation

Technically speaking, the index is a price index whose weighting is based on market capitalization (on a free float basis). The index is not adjusted for dividend payments . Corporate actions such as stock splits have no (distorting) influence on the index. The calculation is updated every 15 seconds during trading hours from 9:00 a.m. to 5:30 p.m. CET .

In order to underline its character as a trade-oriented market barometer, the admission criteria were tightened in July 2007. Since then, the rule has been that an index member has to convert at least ten percent of the outstanding shares per year. In order to increase continuity, the composition is no longer checked every six months, but only once a year (in March). In the case of a newly listed value that has the corresponding order of magnitude in terms of exchange turnover, an exchange can also take place within the year.

Another problem that the reform was supposed to solve was the previously strong imbalance of the individual values. The three largest index members in terms of free float market capitalization had a cumulative share of almost 60 percent at times. As a countermeasure, the maximum permissible weight for individual values ​​was therefore reduced from 20 to 15 percent. If an individual value exceeds this upper limit, its weighting will be reduced during the next adjustment.

In order to be included in the index, the companies must meet certain conditions.

• The shares must be admitted to the official market and traded in the automatic system.
• The headquarters of the company must be in Portugal
• Only one member of a group of companies may be represented in the index
• The companies must have solid financing

The index value (given as I ) of the PSI 20 is calculated using the following formula:

${\displaystyle I_{t}={\frac {\sum _{i=1}^{N}Q_{i,t}\,F_{i,t}\,f_{i,t}\,C_{i,t}\,}{d_{t}\,}}}$

history

20th century

PSI 20 Index 1992–2012

The PSI 20 was introduced on December 31, 1992 with a base value of 3,000 points. In the following years, the PSI 20 set numerous records. On February 17, 1994, the leading Portuguese index closed at 5,079.23 points for the first time above the 5,000-point mark and on January 27, 1998, it ended trading with 10,024.80 points for the first time above the 10,000-point mark. On April 22, 1998, the PSI 20 was 14,292.99 points, 376.4 percent higher than at the end of 1992.

On May 3, 1998, the Council of the European Union made the decision on the first participating states to the euro . At that time, Portugal fulfilled the EU convergence criteria and was therefore admitted to the European Economic and Monetary Union on January 1, 1999 . Like the other countries, it was able to issue the first euro coins and notes from January 2002.

In 1998 there were financial , currency and economic crises in parts of the world ( Asian crisis , Brazilian crisis , Russian crisis ). As a result, the index fell by 43.2 percent to October 2, 1998, to a closing level of 8,114.51 points. The stock market barometer quickly recovered from the crash. 15 months later, on March 3, 2000, the PSI 20 closed at an all-time high of 14,822.59 points. The profit since October 1998 is 82.7 percent.

21st century

After the speculative bubble burst in the technology sector ( dot-com bubble ), the index fell to a low of 5,083.34 points by October 23, 2002. That was a decrease of 65.7 percent since March 2000. October 23, 2002 means the end of the downward slide. From autumn 2002 the PSI 20 began to rise again. On July 17, 2007, the share index ended trading at 13,702.03 points. Since the low in October 2002, the profit is 169.6 percent.

In the course of the international financial crisis , which had its origin in the US real estate crisis in summer 2007, the PSI 20 began to decline again. From autumn 2008 the crisis increasingly affected the real economy. As a result, share prices collapsed worldwide. On March 3, 2009, the index closed at a low of 5,743.09 points. Since July 17, 2007 this corresponds to a decrease of 58.1 percent. March 3, 2009 marks the turning point of the downward trend. From spring 2009 the stock market barometer was on the way up again. By October 19, 2009 it rose by 54.7 percent to a closing level of 8,882.69 points.

The euro crisis from 2010 and the slowdown in the global economy from 2011 led to a slump in the Portuguese benchmark index. On June 1, 2012, the PSI 20 ended trading at 4,453.01 points. The loss since the high on October 19, 2009 is 49.9 percent. The announcement of new bond purchase programs by the European Central Bank and the US Federal Reserve , which are basically unlimited, led to a recovery in prices on the stock market. The monetary stimulus played a bigger role in price formation than the contraction of the Portuguese economy and the state of business. On January 11, 2013, the index closed at 6,150.17 points, 38.1 percent higher than on June 1, 2012.

Highs

The overview shows the all-time highs of the PSI 20.

	Points	date
in the course of trading	15,080.99	Thursday March 9, 2000
on a closing price basis	14,822.59	Friday March 3, 2000

Milestones

The table shows the milestones of PSI 20 since 1992.

First close over Final score in points date 3,000 3,000.00 December 31, 1992 3,500 3,501.71 July 13, 1993 4,000 4,015.18 August 27, 1993 4,500 4,523.80 January 12, 1994 5,000 5,079.23 February 17, 1994 5,500 5,515.62 January 10, 1997 6,000 6,095.92 February 6, 1997 6,500 6,634.69 May 2, 1997 7,000 7,026.45 June 9, 1997 7,500 7,539.93 July 2, 1997 8,000 8,096.83 July 9, 1997 8,500 8,553.34 October 2, 1997

First close over Final score in points date 9,000 9,031.84 January 2, 1998 9,500 9,651.90 January 20, 1998 10,000 10,024.80 January 27, 1998 10,500 10,525.18 February 4, 1998 11,000 11,207.27 February 25, 1998 11,500 11,558.34 March 3, 1998 12,000 12,084.62 March 17, 1998 12,500 12,521.43 March 23, 1998 13,000 13,208.11 April 2, 1998 13,500 13,614.24 April 6, 1998 14,000 14,015.97 April 14, 1998 14,500 14,706.02 February 25, 2000

Annual development

The table shows the annual development of PSI 20 since 1992.

year	Final score in points	Change in points	Change in%
1992	3,000.00
1993	4,288.09	1,288.09	42.94
1994	4,157.25	−130.84	−3.05
1995	3,896.24	−261.01	−6.28
1996	5,146.33	1,250.09	32.08
1997	8,803.50	3,657.17	71.06
1998	10,998.92	2,195.42	24.94
1999	11,960.51	961.59	8.74
2000	10,404.09	−1,556.42	−13.01
2001	7,831.49	−2,572.60	−24.73
2002	5,824.70	−2,006.79	−25.62
2003	6,747.41	922.71	15.84
2004	7,600.16	852.75	12.64
2005	8,618.67	1,018.51	13.40
2006	11,197.59	2,578.92	29.92
2007	13,019.36	1,821.77	16.27
2008	6,341.34	−6,678.02	−51.29
2009	8,463.85	2,122.51	33.47
2010	7,588.31	−875.54	−10.34
2011	5,494.27	−2,094.04	−27.60
2012	5,655.15	160.88	2.93
2013	6,558.85	903.70	15.98
2014	4,798.99	−1,759.86	−26.83
2015	5,317.67	518.68	10.81
2016	4,679.20	−638.47	−12.01
2017	5,388.33	709.13	15.15
2018	4,731.47	-656.86	−12.19

composition

The PSI 20 consists of the following companies (as of August 7, 2018).

Companies	Branch	Index weighting in%	logo
Altri	chemistry	3.46
Banco Comercial Português	Banks	10.58
Corticeira Amorim	Conglomerate	2.91
CTT Correios de Portugal	logistics	2.49
Energias de Portugal	Supplier	13.11
EDP ​​Renováveis	Supplier	10.13
Galp Energia	oil and gas	12.72
Ibersol	System catering	0.82
Jerónimo Martins	retail trade	9.63
Mota-Engil	construction	1.55
NOS	media	7.86
Pharol	telecommunications	0.83
Ramada	Holdings	0.36
Redes Energéticas Nacionais	energy	5.72
Semapa	Investment	3.64
Sonae	Conglomerate	5.36
Sonae Capital	Conglomerate	0.52
The Navigator Company	paper	8.32

Further PSI indices

Further variants of the PSI 20 are:

• PSI 20 TR (Total Return) - a performance-oriented index with a heavy weight on dividends.
• PSI Geral (General) - also a performance index , it includes all traded shares, but not shares without voting rights. It is intended more for analytical purposes and is therefore only calculated once a day.
• PSI Sector - based on the classification of the Industry Classification Benchmark , the PSI is calculated here for various market segments.

Web links

• Index at NYSE Euronext
• Index at Bloomberg
• Index at Yahoo

Individual evidence

1. ↑ NYSE Euronext: PSI 20 Index rules  ( page no longer available , search in web archives )  Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.  
2. ↑ ^{a b c d} Banco de Portugal: Historical courses from 1992
3. ↑ Euro investor: historical prices from 2003
4. ↑ Euronext: All companies in PSI 20