Session of slight movements for the RTSI (Russia)which ended the day on Friday June 24 with a variation of the 0,12%until the 1,414.73 points. The RTSI (Russia) marked the highest number of 1,422.93 points and a minimum volume of 1,401.19 points. The trading range for RTSI (Russia) between its highest point and its lowest point (maximum-minimum) during this day stood at 1,53%.
In relation to the profitability of the last seven days, the RTSI (Russia) accumulates an increase in 7,55%; although in the last year he still accumulates a drop in 12,36%. The RTSI (Russia) stands one 12,82% below its maximum so far this year (1,622.75 points) and a 90,43% above its minimum valuation for the current year (742.91 points).
What is a stock index and what is it for?
a stock index is an indicator used to show the evolution of the value of a set of assetsso it takes data from various companies or sectors of a fragment of the market.
These indicators are mainly used by the stock markets of various nations and each of them can be integrated by companies with certain characteristics such as having a similar market capitalization or belonging to the same type of industry, also, there are some indices that only take into account a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices serve as indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in shares and company shares. If investors lack confidence, stock costs tend to fall.
They also work to measure the performance of an asset manager and allow a comparison to be made between profitability and risk; measure the opportunities of a financial asset or create portfolios.
This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. carefully researched how company stocks tended to go up or down in price together, so he created two indices: one containing the top 20 railroad companies (it was the biggest industry at the time), as well as 12 actions of other types of businesses
Currently there are various indices and they can be associated based on their geography, sectors, company size or even the type of assetFor example, the US Nasdaq index is made up of the 100 largest companies mostly 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).
How to read an index?
Each stock index has its own way of calculating, but the main component is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the bond in the corresponding stock market by the total number of shares that are in the market.
Listed companies are required to present a balance of its composition. Said report must be made public every three or six months, as the case may be.
Reading a stock index also requires analyzing its changes over time. Current indices always start with a fixed value based on the prices of the securities on your start date, but not everyone follows this method. Therefore, it can be misleading.
If one index gains 500 points in one day, while another only adds 20, it might appear that the first index outperformed. However, if the former started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the latter were considerable.
What are the main stock indices?
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies. Similarly, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, the Nasdaq 100 which brings together 100 of the largest non-financial firms.
On the other hand, the most outstanding indices of Europa are the Eurostoxx 50, which covers the 50 largest companies in the eurozone. On the other hand, the DAX 30, the main German index that contains the most prominent companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35 of the Spanish stock market.
In the asian continent we have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which can be considered the most representative of China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Talking about Latin Americayou have the IPC which contains at 35 most consolidated firms of the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.
Another is the bovespa, made up of the 50 most important companies on the São Paulo stock exchange; the Merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC of Caracas, made up of 6 companies from Venezuela.
Similarly, there are other types of global stock market indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Similarly, there is the MSCI World, which includes 1,600 companies from 23 developed countries; the 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 firms on the planet.
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