MibTel Index (Milan)

The MibTel Index tracks stocks on the Borsa Italiana, Italy's main stock exchange, located in Milan. Privatized in 1997 and purchased by the London Stock Exchange 10 years later, the Borsa is responsible for Italy's stock market, derivatives market, and fixed-income market. One hundred thirty brokers, both domestic and foreign, operate on the market through its purely electronic trading system. Bonds, stocks, options, and warrants not admitted to the exchange are traded on the Mercato Ristretto (restricted market).

There are several indices tracking stocks on the Borsa Italiana. The MibTel tracks all Italian stocks and a selection of foreign ones. The MIB30, no longer as relevant as it once was, tracks the performance of 30 top stocks from the MibTel. Increasingly important is the S&P/MIB, a capitalization-weighted index of 40 companies chosen both for their size and to represent 10 specific economic sectors. Since 2004, this has been considered the benchmark index for the Italian market.

The 40 companies as of summer 2008 are A2A, a utility company formed in 2007 by the merger between AEM and ASM Brescia; Alleanza, a Milanese insurance company; Assicurazioni Generali, Italy's largest insurance company (with a controlling stake in Alleanza), dating back to the Austro-Hungar-ian Empire; Atlantia, a holding company; Autogrill, a multinational retail and catering company; Banca Monte dei Paschi di Siena, the oldest bank doing business today—it was founded in 1472, 20 years before Columbus sailed to the Americas, and is known internationally for its sponsorship of Italian basketball; Banca Popolare di Milano, a cooperative bank; Banco Popolare, a cooperative bank; Bulgari, a jeweler and luxury goods retailer; Buzzi Unicem, a producer of cement and concrete; Enel, the third-largest power company in the world; Eni, an oil and gas company; FASTWEB, a broadband communications company; Fiat, best known as an automobile manufacturer, but also a financial group; Finmeccanica, a high-tech conglomerate working in defense, aerospace, energy, and other fields; Fondiaria-Sai, a financial services company; Geox, a shoe and clothing manufacturer; Gruppo Editoriale L'Espresso, publishers of a weekly Italian newspaper; Impregilo, a construction and civil engineering company; Intesa Sanpaolo, a banking group; Italcementi, a cement and concrete company; Lottomatica, a company responsible for lotteries and gambling; Luxottica, the world's biggest eyewear manufacturer, owners of the Ray-Ban and Oakley brands of sunglasses.

Others included in the index are Mediaset, Italy's major television network; Mediobanca, an investment bank; Mediolanum, a financial services company; Mondadori, Italy's biggest publishing company; Parmalat, a dairy and food producer, best known for their shelf-stable milk; Pirelli, a multinational company focused principally on tire manufacturing; Prysmian, a producer of cables for energy and telecommunications; Saipem, an oil and gas contractor; Seat Pagine Gialle, a publisher of phone directories; Snam Rete Gas, a gas company; STMicro electronics NV, a semiconductor manufacturer; Telecom Italia, a telecommunications company; Tenaris, a manufacturer of pipes, especially for the oil and gas industries; Terna, a Roman company that owns and operates 98 percent of the Italian power grid; UBI Banca, a cooperative bank; Unicredito, a pan-European bank based in Milan; Unipol, the third-largest insurance provider in Italy.

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