Swiss Market Index

Swiss Market Index

SMI performance between 1988 and 2012
Foundation 30 June 1988
Operator SIX Swiss Exchange
Exchanges SIX Swiss Exchange
Constituents 20
Type Large cap
Market cap CHF 783.1 billion (end 2009)[1]
Weighting method Market value-weighted
Related indices SMI Mid, SMI Expanded
Website six-swiss-exchange.com

The Swiss Market Index (SMI) is Switzerland's blue-chip stock market index, which makes it the most important in the country. It is made up of 20 of the largest and most liquid Swiss Performance Index (SPI) large- and mid-cap stocks. As a price index, the SMI is not adjusted for dividends, but a performance index that takes account of such distributions is available (the SMIC - SMI Cum Dividend).

The SMI was introduced on 30 June 1988 at a baseline value of 1500 points. Its composition is examined once a year. Calculation takes place in real-time: as soon as a new transaction occurs in a security contained in the SMI, an updated index level is calculated and displayed.

The securities contained in the SMI currently represent more than 90% of the entire market capitalisation, as well as of 90% trading volume, of all Swiss and Liechtenstein equities listed on the SIX Swiss Exchange. Because the SMI is considered to be a mirror of the overall Swiss stock market, it is used as the underlying index for numerous derivative financial instruments such as options, futures and index funds (e.g. ETFs).

Rules

Acceptance criteria

To be accepted into the SMI, a given issue must meet stringent requirements with regard to liquidity and market capitalisation. On one hand, it must represent at least 50% of the average liquidity of the SPI constituent issues and, on the other, have a minimum free-float capitalisation equal to 0.45% or more of the entire SPI capitalisation. Moreover, trading volume and capitalisation are the determining factors in the quarterly rankings. The composition of the index is reviewed annually on the third Friday in September.

2007 restructuring

The SMI comprises a fixed number of 20 securities as of the ordinary review date in September 2007. Prior to this date, the index contained 25 listings. The ranking as of 30 June 2007 (according to average capitalisation and the turnover achieved during one year, i.e. from 1 July 2006 through 30 June 2007) determined which companies would remain within the SMI. On 5 July 2007, SWX announced that Ciba Specialty Chemicals, Lonza Group, Givaudan, SGS and one of the two classes of shares of Swatch Group would leave the SMI as of 24 September 2007 leaving 20 securities in the index.[2]

Constituents

Distribution of SMI expanded index firms by canton of HQ
Distribution of SMI expanded index market capitalization by canton of HQ

The following 20 stocks make up the SMI index.[3]

Company ICB Sector Canton Ticker symbol
ABB electronic equipment Zurich ABBN
Actelion biotechnology Basel ATLN
Adecco business training and employment agencies Zurich ADEN
Credit Suisse banks Zurich CSGN
Geberit building materials and fixtures St. Gallen GEBN
Givaudan specialty chemicals Geneva GIVN
Julius Baer Group banks Zurich BAER
LafargeHolcim building materials and fixtures LHN
Nestlé food products Vaud NESN
Novartis pharmaceuticals Basel NOVN
Richemont clothing and accessories Geneva CFR
Roche pharmaceuticals Basel ROG
SGS business support services Geneva SGSN
Swatch Group clothing and accessories Bern UHR
Swiss Life Life insurance Zurich SLHN
Swiss Re reinsurance Zurich SREN
Swisscom fixed line telecommunications Bern SCMN
Syngenta specialty chemicals Basel SYNN
UBS banks Zurich UBSG
Zurich Insurance Group full line insurance Zurich ZURN

Notes and references

  1. ↑ "SMI Family – Factsheet" (PDF). SIX Swiss Exchange. February 2010. Retrieved 20 June 2010.
  2. ↑ "SWX Indices: Adjustments to SMI, SMIM and SLI composition and SPI Small/Mid/Large breakdown" (PDF) (Press release). SWX Swiss Exchange. 2007-07-05. Retrieved 2007-07-18.
  3. ↑ "SMI® PR". SIX Swiss Exchange. Retrieved 2016-12-03.
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