Opening of KOSPI: the South Korean market gains ground on March 15

Beginning of raise day for the KOSPIwhich opens the session on Wednesday March 15 with notable increases of 1.37%until the 2,381.18 dots, after opening. If we compare the figure with the previous days, the KOSPI returns data from the previous day where it saw a decline of 0.67%, unable to consolidate a trend in recent dates.

If we consider the data of the last seven days, the KOSPI marks a decrease of 2.09%so that last year it still maintains a decline of 11.16%. He KOSPI is located 4.14% below its maximum this year (2,484.02 points) and a 7.32% above its minimum valuation so far this year (2,218.68 points).

a stock market index It is an indicator used to show the price movement of a certain set of assets.for which you need to have data from various companies or sectors in a part of the market.

These indicators are mainly used by the exchanges of the countries and each of them can be integrated by companies with certain characteristics like having a similar market capitalization or being in the same type of industry, there are also some indices that only consider a handful of stocks to determine their value or others that consider hundreds of stocks.

Stock indices serve as indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of stock investments and shares of the company. If investors are not confident, stock prices tend to fall.

They are also working to measure the performance of an asset manager and they allow investors to have comparisons between profitability and risk; measure the opportunities of a financial asset or create portfolios.

These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. To carefully analyze how company stock prices tended to rise or fall together, he created two indexes: one that contained the 20 largest railway companies (because it was the largest industry in the era), as well as 12 shares of other types of companies

There are currently various indices and they can group together based on geography, industries, company size or even asset classFor example, the American Nasdaq index is made up of the 100 largest companies mainly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA ), Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).

Each stock index has its own calculation method, but the main factor is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the security on the corresponding stock market by the total number of shares outstanding on the market.

Listed companies are required to present a balance sheet of its composition. This report must be notified every three or six months, as the case may be.

Reading a stock market index also means observing its evolution over time. New indices always open at a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be misleading.

If one index rises 500 points in one day, while another only gains 20, it may seem that the former has performed better. However, if the first started the day at 30,000 points, and the other at 300, it can be concluded that in percentage terms the gains for the second were greater.

Between the main stock indices of the American Union is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Likewise, the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the Nasdaq 100which includes 100 of the largest non-financial companies.

On the other hand, the most important indices of Europe are the Euro Stoxx 50, which covers the 50 largest companies in the euro area. On the other hand, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; there FTSE100 the London Stock Exchange; he CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock exchange.

In the asian continentwe have the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also SSE composite index, which can be considered the most representative of China, consisting of the most important companies of the Shanghai Stock Exchange. Also, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

As it concerns Latin Americayou have the IPCwhich contains the 35 most influential companies on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of tycoon Carlos Slim.

Another is the Bovespa, composed of the 50 most important companies of the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP Columbia; he IBC of Caracas, made up of 6 companies from Venezuela.

Finally, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies from Brazil, Chile, Colombia, Mexico and Peru.

Likewise, there is MSCI World, which brings together 1,600 companies from 23 developed countries; he MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P Global 100made up of the 100 most powerful multinational corporations on the entire planet.