MADRID -- Shares of Spanish pizza delivery giant Telepizza rose 4.4 percent on Dec. 12 after the Spanish Ibex committee adjusted share weightings and left the company's status in the index unchanged.
The weighting of each company's stock is based on market capitalization, liquidity and the number of shares traded. Stocks with strong numbers in all three categories remain a part of that index, which led investors to question Telepizza's place there.
According to Reuters, Spain's market analysts expected the volatile pizza firm would be forced out of the index since it has performed 30 percent below Ibex standards on two different occasions in 2001.
"The rise of Telepizza is due to the change in fund portfolios which had dropped it, believing it could leave the Ibex," said Miguel Pareja, director of analysis at brokers Eurodeal in Madrid. "When it was confirmed that it wouldn't, people automatically started buying."
Madrid-based Telepizza, which has approximately 825 stores in seven countries, has endured a rollercoaster ride on the market all year long. When takeover rumors surfaced earlier this year, its share price spiked twice. But when the rumors proved false, the market turned on the stock, dropping its value by about one-third.
Telepizza shares traded at $1.62 at the market's close.