Day of hikes for the Nikkei 225 which closed on Wednesday June 1 with increases of 0,65%until the 27,457.89 points. The Nikkei 225 scored a maximum of 27,482.31 points and the minimum number of 27,295.42 points. The trading range for Nikkei 225 between its highest point and its lowest point (maximum-minimum) during this day stood at 0,68%.
Regarding the last seven days, the Nikkei 225 marks a rise of 2,92%; Despite this, in year-on-year terms, it still maintains a decrease in 2,28%. The Nikkei 225 stands one 6,39% below its maximum this year (29,332.16 points) and a 11,09% above its minimum price so far this year (24,717.53 points).
Stock market indices… for what?
a stock index is an indicator used to show the evolution of the price of a given set of assetsfor which it takes data from various companies or sectors of a part of the market.
These indicators are mainly used by the stock exchanges of each country and each of them can be integrated by signatures with certain characteristics such as having a similar market capitalization or belonging to the same industry, also, there are some indices that only consider 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 shares of an entity. Generally, if investors lack confidence, equity costs will tend to fall.
They also work to measure the performance of an asset manager and allow investors to have comparisons between return 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 analyzed how company stocks tended to go up or down together in price, so he created two indices: one containing the top 20 railroad companies (since it was the biggest industry at the time), as well as 12 actions of other types of businesses
Currently in humanity there are various indices and they can be associated based on their location, sectors, company size or even the type of assetFor example, the US Nasdaq index is made up of the 100 largest companies largely 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 factor is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the bonus in the corresponding stock market by the total number of shares that are in the market.
Companies listed on the stock exchange are required to present a balance of its composition. Said report must come to light every three or six months, as the case may be.
Reading a stock index also implies paying attention to its variations over time. Current indices always start with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can be misleading.
If one index grows 500 points in a day, while another only adds 20, it might seem that the first index performed better. But if the former started the day at 30,000 points and the other at 300, it follows that, in percentage terms, the gains for the latter were more remarkable.
These are the main stock indices
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Joneswhich is made up of 30 companies., the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Lastly, appears the Nasdaq 100which 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 containing the strongest 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 35of the Spanish stock market.
In the asian continentwe 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 notable in China, made up of the most prominent companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Seung index in Hong Kong and the KOSPI in South Korea.
Talking about Latin Americayou have the IPCwhich contains at 35 most powerful firms of the Mexican Stock Exchange (BMV). At least a third of them are owned by magnate 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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