View source for PSI-20

{{short description|Portuguese stock market index}}
{{Infobox Index
|name = PSI-20
|logo =
|foundation = 31 December 1992
|operator = [[Euronext]]
|exchanges = [[Euronext Lisbon]]
|constituents = 20
|cap_level = Large cap
|mcap = [[Euro|€]]61.50 billion <small>(end 2010)</small><ref>{{cite web |url=http://www.euronext.com/fic/000/048/501/485015.pdf |title=PSI-20 Executive Presentation 2009 |accessdate=2010-03-02 |publisher=[[Euronext]] |url-status=dead|archiveurl=https://web.archive.org/web/20110710205214/http://www.euronext.com/fic/000/048/501/485015.pdf |archivedate=2011-07-10 }}</ref>
|weighting = [[Capitalization-weighted index|Capitalization-weighted]]
|related = [[PSI Geral]]
|homepage = [https://www.euronext.com/en/products/indices/PTING0200002-XLIS www.euronext.com]
}}

The '''PSI-20''' (an [[acronym]] of '''Portuguese Stock Index''')<ref>{{cite web
|url=http://www.euronext.com/editorial/wide/disclaimer-2164-EN.html
|title=Trademarks
|publisher=[[Euronext]]
|accessdate=2007-12-28}}</ref> is a benchmark [[stock market index]] of companies that trade on [[Euronext Lisbon]], the main [[stock exchange]] of [[Portugal]]. The index tracks the prices of the twenty listings with the largest [[market capitalization|market capitalisation]] and share turnover in the [[PSI Geral]], the general stock market of the Lisbon exchange. It is one of the main national indices of the pan-European stock exchange group [[Euronext]] alongside [[Brussels]]' [[BEL20]], [[Paris]]'s [[CAC 40]] and [[Amsterdam]]'s [[AEX index|AEX]].

==History==
[[File:PSI 20.png|thumb|280px|Price evolution of the PSI-20 between 1992 and 2012.]]
The PSI-20 was initiated on 31 December 1992 with a base value of 3,000 index points.<ref name= "profile" >{{cite web
|url=http://www.euronext.com/editorial/wide/editorial-2667-EN-PTING0200002.html?selectedMep=5
|title=PSI-20 index profile
|publisher=Euronext
|accessdate=2007-12-28}}</ref> The index experienced considerably more [[Volatility (finance)|volatility]] than the world's main financial markets between 1998 and 2000,<ref name= "BCP" >{{cite web
|url=http://www.millenniumbcp.pt/multimedia/archive/00361/firstfeed1166_361406a.pdf
|title=Activity Report Third Quarter 1999: Economic Environment
|publisher=[[Banco Comercial Português]]
|accessdate=2007-12-28}}</ref> caused by uncertainty in the world's [[emerging markets]]:<ref>{{cite web
|url=http://store.eiu.com/article/404078640.html
|title=Business news: BVL-30 recovers some ground after a sharp decline
|publisher=[[Economist Intelligence Unit]]
|date=3 December 1998
|accessdate=2007-12-28}}</ref> a sharp increase of over 50% in the PSI-20's value in the first four months of 1998 was followed by a decline of similar magnitude between July and October of that year.<ref name= "BCP" /> Another price surge sparked at the tail end of 1999 peaked with the index's highest value to date, 14,822,59 set on 3 March 2000.<ref>{{cite news
|last=Domingos
|first=Ricardo
|url=http://jornaldenegocios.pt/default.asp?CpContentId=253578
|title=Pequenas e médias empresas lideram ganhos na bolsa nacional em 2004
|work=[[Jornal de Negócios]]
|date=31 December 2004
|accessdate=2007-12-28
|language=pt
|archive-url=https://web.archive.org/web/20120323111530/http://www.jornaldenegocios.pt/default.asp?CpContentId=253578
|archive-date=23 March 2012
|url-status=dead
}}</ref> The Portuguese [[Blue chip (stock market)|blue-chip]] market's subsequent performance has broadly followed the trends set by other [[Western world|Western]] indices, falling in the aftermath of the [[dot-com bubble]] before recovering significantly from 2003 onwards.<ref>{{cite web
|url = https://finance.yahoo.com/charts#chart1:symbol=^psi20;range=5y;compare=^gdaxi+^dji+^ftse;charttype=line;crosshair=on;logscale=off;source=undefined
|title = 5-year comparison chart of PSI-20, Xetra DAX, FTSE 100 and DJIA
|publisher = [[Yahoo! Finance]]
|accessdate = 2007-12-28
|url-status = dead
|archiveurl = https://web.archive.org/web/20071227231147/http://finance.yahoo.com/charts#chart1:symbol=^psi20;range=5y;compare=^gdaxi+^dji+^ftse;charttype=line;crosshair=on;logscale=off;source=undefined
|archivedate = 2007-12-27
}}</ref>

== Annual Returns ==
The following table shows the annual development of the PSI-20 since 1992.<ref>{{cite web|url=https://stooq.com/q/d/?s=^psi20|title=Historical data: PSI 20 Index - Portugal (^PSI20)|last=|first=|date=|year=|website=|publisher=|pages=|language=|format=|archive-url=|archive-date=|access-date=|quote=|periodical=}}</ref>
{| class= "wikitable sortable" style= "text-align:right"
!Year
!Closing level
!Change in index<br />in points
!Change in index<br />in %
|-
| 1992 || 3,000.00 || ||
|-
| 1993 || 4,288.09 || 1,288.09 || 42.94
|-
| 1994 || 4,157.25 || −130.84||style= "color:red" |−3.05
|-
| 1995 || 3,896.24 || −261.01||style= "color:red" |−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||style= "color:red" |−13.01
|-
| 2001 || 7,831.49 || −2,572.60||style= "color:red" |−24.73
|-
| 2002 || 5,824.70 || −2,006.79||style= "color:red" |−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||style= "color:red" |−51.29
|-
| 2009 || 8,463.85 || 2,122.51 || 33.47
|-
| 2010 || 7,588.31 || −875.54||style= "color:red" |−10.34
|-
| 2011 || 5,494.27 || −2,094.04||style= "color:red" |−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||style= "color:red" |−26.83
|-
| 2015 || 5,317.67 || 518.68 || 10.81
|-
| 2016 || 4,679.20 || −638.47||style= "color:red" |−12.01
|-
| 2017 || 5,388.33 || 709.13 || 15.15
|-
| 2018 || 4,731.47 || −656.86||style= "color:red" |−12.19
|-
|2019
|5,214.14
|482.67
|10.20
|-
|2020
|4,898.36
|−315.78||style= "color:red" |−6.06

|-
|2022
|5,726.11
|156.63
|2.81
|-
|2023
|6,396.48
|670.37
|11.71
|-
|}

<!-- Please only delete this line once the appropriate category has been created within Category:Companies by stock market index -->
==Rules==

It is worth noting that the number of constituents of the index (20) is below the generally accepted [[Sample size determination|minimum sample size]] of 30 required to reach [[statistical significance]].

===Selection===

====Annual review====
Prior to a change in the index rules in July 2007, the PSI-20 composition was reviewed twice a year in January and July.<ref name= "changes" >{{cite web
|url=http://www.euronext.com/fic/000/021/296/212967.pdf
|title=Announcement rule changes PSI 20 effective 2007
|publisher=Euronext
|accessdate=2007-12-28}}</ref> In a move to increase the stability of the index,<ref name= "FAQ" >{{cite web
|url=http://www.euronext.com/fic/000/021/296/212969.pdf
|title=FAQ New Rules PSI 20
|publisher=Euronext
|accessdate=2007-12-28}}</ref> the review frequency was at this time switched to annually, commencing on the first trading day of March 2008 (in line with the [[BEL20]] and [[AEX index|AEX]]).<ref name= "changes" /> Responsibility for the rules and composition of the index rests with an independent PSI Steering Committee,<ref name= "profile" /> which publishes any decisions a minimum of one month before they become effective.<ref name= "rules" >{{cite web
|url=http://www.euronext.com/fic/000/007/937/79378.pdf
|title=Rules for the PSI-20 Index
|publisher=Euronext
|date=July 2007
|accessdate=2007-12-28}}</ref>

From the March 2008 reshuffle onwards, prospective PSI-20 companies are required to possess a "trading velocity" (the fraction of the company's [[Float (finance)|free float]] shares which have changed hands over the previous calendar year) of at least 10% so as to safeguard the [[Market liquidity|liquidity]] of the index.<ref name= "rules" /> All listings on the stock exchange which satisfy this criterion are ranked by the total value (in [[Euro]]s) of [[stock|shares]] traded in the previous year (thus taking both [[market capitalization|market cap]] and liquidity into consideration), and this classification is used to choose the index's constituents. Any existing constituent which falls below 22nd place in the ranking is automatically removed from the index, and any non-constituent which rises above 18th place is added to the index.<ref name= "rules" /> If existing constituents occupy positions 21 and/or 22, they stay in the PSI-20 provided no non-constituents have risen above 18th position to replace them. Likewise, non-constituents holding positions 19 and/or 20 are not promoted unless a slot in the index is freed up by a constituent falling below 22nd place.<ref name= "rules" />

====Extraordinary changes====
If a company is removed from the index outside an annual review as a result of some extraordinary [[corporate action]] (such as a [[mergers and acquisitions|merger]] or [[Delisting (stock)|delisting]] due to a takeover), the highest-ranked listing not already in the index is selected to fill the vacancy with immediate effect.<ref name= "rules" /> This is in contrast to some other Euronext indices such as the AEX, where such slots are not generally filled until the next annual review.

==== "Fast Entry" rule====
If a newly listed company on Euronext Lisbon possesses a market cap and is predicted to have a liquidity which exceeds that of some existing PSI-20 constituents, then a "Fast Entry" rule can be invoked to insert it into the index. This can occur either shortly after its [[Initial public offering|IPO]] or on the first trading day of September. The existing constituent with the lowest share turnover is removed to free up a space in the index.<ref name= "rules" />

===Weighting===
The PSI-20 is a [[capitalization-weighted index]]. The market capitalisation used to calculate the weightings of each stock is the so-called ''free-float band adjusted market cap'', where the free float factor (fraction of shares actively available for trade on Euronext Lisbon) is rounded up to the nearest 5%.<ref name= "rules" /> The weightings of companies in the index were capped (if necessary) at 20% at each semi-annual review prior to the July 2007 rule change, when the capping limit was cut to 15% in line with Euronext's other benchmark national indexes.<ref name= "changes" /> Weights are allowed to fluctuate freely after index changes are made, but are capped once again at the next reclassification. The capping factors used to scale down the weightings of the largest companies are recalculated each year at the index review.<ref name= "rules" />

===Calculation===
The index value ''I'' of the PSI-20 index is calculated using the following formula:<ref name= "rules" />

<math> I_t = \frac{\sum_{i=1}^N Q_{i,t}\,F_{i,t}\,f_{i,t}\,C_{i,t}\,}{d_{t}\,} </math>

with ''t'' the day of calculation; ''N'' the number of constituent shares in the index (usually 20); ''Q<sub>i,t</sub>'' the number of shares of company ''i'' on day ''t''; ''F<sub>i,t</sub>'' the free float factor of share ''i''; ''f<sub>i,t</sub>'' the capping factor of share ''i'' (exactly 1 for all companies not subject to the 15% cap); ''C<sub>i,t</sub>'' the price of share ''i'' on day ''t''; and ''d<sub>t</sub>'' a parameter known as the index divisor.

{| class= "wikitable sortable" cellpadding= "2 cellspacing" style= "text-align: center"
! scope= "col" | Company
! scope= "col" | Industry
! scope= "col" | [[Ticker symbol|Ticker]]
! scope= "col" | Weight (%)
|-
| [[Altri]] || Basic Resources || {{Euronext3|ALTR}} || 2.03
|-
| [[Banco Comercial Português]] || Banks || {{Euronext3|BCP}} || 17.04
|-
| [[Corticeira Amorim]] || Industrial Goods & Services || {{Euronext3|COR}} || 2.62
|-
| [[CTT Correios de Portugal, S.A.|CTT Correios de Portugal]] || Industrial Goods & Services || {{Euronext3|CTT}} || 3.02
|-
| [[EDP Renováveis]] || Utilities || {{Euronext3|EDPR}} || 9.69
|-
| [[Energias de Portugal]] || Utilities || {{Euronext3|EDP}} || 10.36
|-
| [[Galp Energia]] || Energy || {{Euronext3|GALP}} || 11.50
|-
| [[Ibersol]] || Travel & Leisure || {{Euronext3|IBS}} || 0.93
|-
| [[Jerónimo Martins]] || Personal Care, Drug & Grocery Stores || {{Euronext3|JMT}} || 10.55
|-
| [[Mota-Engil]] || Construction & Materials || {{Euronext3|EGL}} || 2.22
|-
| [[NOS (Portuguese media company)|NOS]] || Telecommunications || {{Euronext3|NOS}} || 9.01
|-
| [[Novabase]] || Technology || {{Euronext3|NBA}} || 0.24
|-
| [[Pharol]] || Telecommunications || {{Euronext3|PHR}} || 0.93
|-
| [[Redes Energéticas Nacionais]] || Utilities || {{Euronext3|RENE}} || 4.75
|-
| [[Semapa]] || Basic Resources || {{Euronext3|SEM}} || 2.77
|-
| [[Sonae]] || Personal Care, Drug & Grocery Stores || {{Euronext3|SON}} || 5.03
|-
| [[Sonae Capital]] || Financial Services|| {{Euronext3|SONC}} || 0.50
|-
| [[The Navigator Company]] || Basic Resources || {{Euronext3|NVG}} || 6.81
|}

==See also==
*[[List of Portuguese companies]]
*[[List of stock market indices]]

==References==
{{reflist}}

==External links==
*[https://www.euronext.com/en/products/indices/PTING0200002-XLIS/quotes Euronext quote for PSI-20 ]
*[https://www.euronext.com/en/products/indices/PTING0200002-XLIS/market-information Market information] on [[Euronext]] website
*[https://web.archive.org/web/20140812175303/https://indices.nyx.com/products/indices/PTING0200002-XLIS/quotes Official Euronext page for PSI-20 Index]
*[https://www.bloomberg.com/apps/quote?ticker=PSI20:IND Bloomberg page for PSI20:IND]

{{PSI-20 companies}}
{{European Stock market indices}}
{{Euronext topics}}

[[Category:Euronext indices]]
[[Category:Economy of Portugal]]
[[Category:Economy of Lisbon]]
[[Category:Financial services companies of Portugal]]