Interesting facts about the IT40 (IT40)
Milano Indice di Borsa, or as many people know it, FTSE MIB or IT40, is an Italian national stock exchange index. Even though the IT40 index is associated with Italy, don’t forget that the index is owned by a subsidiary company based in the UK. In September 2004, IT40 superseded MIB-30.
Those who like beautiful and fitting numbers will enjoy the fact that on March 6, 2000, both the opening and the closing prices of the day were the same – 50,109.00 points. It was the only time such a thing had happened.
The pandemic touched all of us, and the FTSE MIB index wasn’t any exception. It suffered quite strongly. The worst day was March 12, 2020 when the index fell by 16.92% – a considerable fall for the shareholders. It was the biggest loss during the whole pandemic and in the history of the index. The series of lockdowns and restrictive measures in Italy in 2020, and the economic crisis in the country didn’t do any good to the index performance either.
The index is thought to be a great indicator of how well the general Italian economic performance is.
FTSE MIB captures about four-fifths of the domestic market’s capitalization, so the index is thought to be highly liquid. It was made for index-tracking fund creation, designing derivatives, and as a performance benchmark. The index is also absolutely transparent with rules-based construction processes. To ensure that the IT40 is investable, its stocks are carefully selected and weighted.
Italy40 captures more than 80% of the domestic market cap. The index is in favor of traders because of its exposure to market price volatility, a wide choice of derivative financial instruments, its volume, and significant profit from day-to-day fluctuations.
