These are the most important data to pay attention to regarding the evolution of this asset
Beginning of the continuation session for the RTSI (Russia), which begins the session on Monday, December 12 with a variation of 0.17%, up to 1,097.27 points, after the start of the opening session. Comparing this data with that of previous days, the RTSI (Russia) inverts the data of the previous day, in which it ended with a rise of 0.21%, showing that it is unable to establish a trend in recent dates.
Taking into account the last week, the RTSI (Russia) records a decrease of 1.56%, so that in interannual terms it still accumulates a decrease of 39.13%. The RTSI (Russia) is 32.38% below its maximum so far this year (1,622.75 points) and 47.7% 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 that measures the evolution of the value of a certain set of assets, so it needs to have data from different companies or sectors of a part of the market.
These indicators are used mainly by the stock markets of different countries around the world and each of them can be made up of companies with specific characteristics, such as having a similar market capitalization or belonging to the same type of industry. There are also some indices. that only take into account a handful of shares to determine their value or others that consider hundreds of shares.
Stock indices serve as an indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the return on investment in a company’s stocks and shares. If investors are not confident, share prices will tend to fall.
They also work to measure the performance of an asset manager and allow investors to analyze risk vs. return comparisons; 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 investigate how the shares of companies tended to rise or fall together in price, he created two indices: one that contained the 20 largest railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses
Today in our economy there are various indices and they can be associated based on their location, sectors, the size of the companies or the type of asset, for example, the US Nasdaq index is made up of the 100 largest companies to a large extent. related to technologies 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 being measured, but the main factor is the market capitalization of each firm that integrates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares that are in circulation in the market.
Firms listed on the stock market are required to present a balance sheet of their composition. Said report must be disclosed every three or six months, as the case may be.
Reading a stock index also requires noticing its changes over time. New indices always start with a fixed value based on the prices of the securities on their start date, but not all follow this method. So it can be confusing.
If one index increases 500 points in one day, while another only adds 20, it might appear that the former performed better. But, if the first started the day at 30,000 points and the other at 300, it can be derived that, in percentage terms, the gains for the second were considerable.
What are the major stock indices?
Among the main stock market indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Likewise, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, we must mention the Nasdaq 100, which brings together 100 of the largest non-financial firms.
On the other hand, the most prominent indices in Europe are the Eurostoxx 50, which covers the 50 most important companies in the euro area. On the other hand, the DAX 30, the main German index that contains the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 of the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35, of the Spanish stock market.
In Asia, the main stock indices are the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is 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. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
With regard to the Latin American region, there is the IPC, which contains the 35 most powerful firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by tycoon Carlos Slim.
Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; the Merval from Argentina; the IPSA of Chile; the MSCI COLCAP of Colombia; the IBC of Caracas, made up of 6 companies from Venezuela.
Similarly, there are other types of global stock indices such as the MSCI Latin America, which 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 100, made up of the 100 most powerful multinational firms on the entire planet.