TIG 20

TIG 20
base data
Country	Poland
Stock exchange	Warsaw Stock Exchange
ISIN	PL9999999987
WKN	969729
symbol	WIG20
RIC	^ WIG20
Bloomberg code	WIG20 <INDEX>
category	Stock index
Type	Price index
family	TIG

The WIG 20 ( Polish Warszawski Indeks Giełdowy , Warsaw Stock Exchange Index ) is the most important stock index on the Warsaw Stock Exchange in Poland . The 20 most important Polish companies by market capitalization are listed in the financial index. By the end of 2015, the WIG is intended by the 20 wig30 be replaced.

calculation

Technically speaking, the WIG 20 is a price index . It includes the 20 largest Polish joint-stock companies that are traded on the Warsaw Stock Exchange. The index level is determined solely on the basis of share prices and only adjusted for income from subscription rights and special payments. In addition to market capitalization , weighting is also based on the market value in free float . Corporate actions such as stock splits have no (distorting) influence on the index. The calculation is updated every second during trading hours from 9:00 a.m. to 5:30 p.m. CET .

The stocks that are available for selection must belong to the most important companies in Poland. The headquarters of the company plays a role as well as other characteristics that the index committee determines. To be included in the index, for example, the number of shares in free float must not be less than 10 percent, and the market capitalization of shares in free float must be at least 1 million euros.

Since the WIG 20 is constructed as a pure price index and at the same time contains several high-dividend stocks such as the raw materials company KGHM , the true performance of Polish stocks is underestimated. As an alternative to WIG 20, the Polish Traded Index (PTX) calculated by the Vienna Stock Exchange is occasionally used, although it is limited to 13 values.

The index value of the TIG 20 is calculated using the following formula:

${\ displaystyle WIG20 = {\ frac {M (t)} {M (0) * K (t)}} * 1000}$

history

20th century

WIG20 index 1991–2012

The WIG 20 started on April 14, 1994 with a base value of 1,000 points and was calculated back to April 16, 1991 (base value 100 points). On June 23, 1992, the leading Polish index marked an all-time low at 62.80 points.

On June 22, 1993, at the EU summit in Copenhagen, the European Council decided on the Copenhagen criteria in preparation for the EU's eastward expansion . In the months that followed, the leading Polish index rose rapidly. On August 10, 1993, with a final score of 518.90 points, it exceeded the limit of 500 for the first time and on December 13, 1993 with a final score of 1,015.70 points, the 1,000-point mark for the first time. At the end of 1993, the WIG 20 was calculated at 1,229.80 points, which is 1,095 percent higher than a year earlier. No other stock exchange in the world rose so strongly in 1993. Local speculators and Western investors drove prices to record highs. On March 1, 1994, the index closed at 2,004.50 points for the first time above the limit of 2,000 points. On March 8, 1994, the WIG 20 ended trading at 2,052.50 points. The profit since the all-time low of June 1992 is 3,168 percent.

However, the powerful upswing was followed by a significant slump. By June 23, 1994, the stock market barometer fell by 65.2 percent to a closing level of 713.30 points. In the following years, the WIG 20 remained very volatile. On August 23, 1994, the WIG 20 closed at 1,229.20 points and then fell by 53.0 percent to 577.80 points by March 28, 1995. On February 13, 1997, the share index was back at 1,887.90 points.

In the course of the Russian crisis, there was a massive outflow of capital, which triggered an economic crisis in the country. The first signs of an economic crisis had already emerged in the aftermath of the turbulence of the Asian crisis in autumn 1997. The crisis made investors in Poland nervous and withdrew their money. On October 8, 1998, the WIG 20 closed at 971.30 points. The loss since February 1997 is 48.6 percent. On March 10, 2000, the share index closed at 2,481.80 points, 155.5 percent higher.

21st century

After the speculative bubble burst in the technology sector ( dot-com bubble ), the leading Polish index fell to a low of 990.23 points by October 3, 2001. That was a decrease of 60.1 percent since March 2000. October 3, 2001 means the end of the downward slide. From autumn 2001, the WIG 20 began to increase again. On April 13, 2006, the stock market barometer closed at 3,023.69 points for the first time above the 3,000-point mark. On October 29, 2007, the leading Polish index ended trading at an all-time high of 3,917.87 points. Since the low in October 2001, the profit is 295.7 percent.

In the course of the international financial crisis , which had its origin in the US real estate crisis in the summer of 2007, the WIG 20 began to decline again. On October 10, 2008, the index closed at 1,991.62 points, below the limit of 2,000 points. The index hit a new low on February 17, 2009 when it ended trading at 1,327.64 points. Since October 29, 2007 this corresponds to a decrease of 66.1 percent. It is the biggest fall in the history of the WIG 20.

February 17, 2009 marks the turning point of the downward trend. From spring 2009, the share index was on the way up again. By April 28, 2011, it rose by 120.9 percent to a closing level of 2,932.62 points. The weakening of the global economy and the worsening of the euro crisis led to a slump in the Polish benchmark index. On October 4, 2011, the WIG 20 index ended trading at 2,089.84 points. The loss since April 28, 2011 is 28.7 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 the price formation than the global economic slowdown and the state of the companies. On January 3, 2013, the index closed at 2,628.36 points, 25.7 percent higher than on October 4, 2011.

Highs

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

	Points	date
in the course of trading	3,940.53	Monday October 29, 2007
on a closing price basis	3,917.87	Monday October 29, 2007

Milestones

The table shows the milestones of the TIG 20.

First close over	Final score in points	date
100	100.00	April 16, 1991
500	518.90	August 10, 1993
1,000	1,015.70	December 13, 1993
1,500	1,524.60	January 20, 1994
2,000	2,004.50	March 1, 1994
2,500	2,514.84	September 27, 2005
3,000	3,023.69	April 13, 2006
3,500	3,549.33	February 1, 2007

Annual development

The table shows the annual development of the TIG 20 calculated back to 1991.

year	Final score in points	Change in points	Change in%
1991	90.90
1992	102.90	12.00	13.20
1993	1,229.80	1,126.90	1,095.14
1994	732.00	−497.80	−40.48
1995	791.90	59.90	8.18
1996	1,441.80	649.90	82.07
1997	1,487.20	45.40	3.15
1998	1,241.20	−246.00	−16.54
1999	1,788.60	547.40	44.10
2000	1,816.19	27.59	1.54
2001	1,208.34	−607.85	−33.47
2002	1,175.64	−32.70	−2.71
2003	1,574.04	398.40	33.89
2004	1,960.57	386.53	24.56
2005	2,654.95	694.38	35.42
2006	3,285.49	630.54	23.75
2007	3,456.05	170.56	5.19
2008	1,789.73	−1,666.32	−48.21
2009	2,388.72	598.99	33.47
2010	2,744.17	355.45	14.88
2011	2,144.48	−599.69	−21.85
2012	2,582.98	438.50	20.45
2013	2,400.98	−182.00	−7.05
2014	2,315.94	−85.04	−3.54
2015	1,859.15	−456.79	−19.72
2016	1,947.92	88.77	4.77
2017	2,461.21	513.29	26.35
2018	2,276.63	−184.58	−7.50

composition

The WIG 20 consists of the following companies (as of August 8, 2018).

Companies	Branch	Index weighting in%
Alior Bank	Finances	3.19
Bank Pekao	Finances	8.99
Bank Zachodni WBK	Finances	5.50
CCC	retail trade	2.82
CD project	software	6.77
Cyfrowy Polsat	media	3.02
Energa	Supplier	0.87
Eurocash Group	Wholesale	0.69
Grupa LOTOS	oil and gas	2.65
JSW	Mining	1.97
KGHM Polska Miedź	Mining	5.99
LPP	Textile industry	5.56
mBank	Finances	2.53
Orange Polska	telecommunications	1.53
Polska Grupa Energetyczna	Supplier	3.64
Polskie Górnictwo Naftowe i Gazownictwo	oil and gas	4.35
PKN Orlen	oil and gas	12.76
PKO Bank Polski	Finances	14.62
PZU SA	Finances	11.41
Tauron Polska Energia	Supplier	1.10