Optimistic opening for the IBEX 35 which begins on Friday June 24 with slight increases in 0,26%until the 8,127.12 points, after the start of the opening session. Compared to previous days, the IBEX 35 With this data he stops the flat streak that he had in the previous three days.
Taking into account the last seven days, the IBEX 35 accumulates a drop in 0,23%for this reason in the last year it still maintains a decrease in 9,01%. The IBEX 35 stands one 9,03% below its maximum so far this year (8,933.60 points) and a 6,31% above its minimum valuation for the current year (7,644.60 points).
What is a stock index and what is it for?
a stock index It is an indicator that is used to know the evolution of the value of a certain set of assets. so it collects 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 firms with specific characteristics such as having a similar market capitalization or belonging to the same 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, share prices will tend to fall.
They also work to measure the performance of an asset manager and they allow investors to make a comparison 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 calculation method, 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 title in the corresponding stock market by the total number of shares that are in circulation in the market.
Companies listed on the stock exchange are required to present a balance of its composition. Said report must be notified every three or six months, as appropriate.
Reading a stock index also requires noticing its changes over time. Current indices always start with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can be confusing.
If one index rises 500 points in a day, while another only gains 20, it might appear that the first index outperformed. But, if the first one started the day at 30,000 points and the other one at 300, it can be deduced that, in percentage terms, the gains for the second one were more remarkable.
What are the main stock indices?
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones made up of 30 companies., the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100 which brings together 100 of the largest non-financial firms.
On the other hand, the most important indices of Europa are the Eurostoxx 50, which covers the 50 largest companies in the eurozone. In addition, 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 35 of the Spanish stock market.
In Asiawe have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, is seen as the most representative of 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 the Latin American region you have the IPC which contains at 35 most influential firms of 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 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 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 100made up of the 100 most powerful multinational firms on the planet.
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