Opening session up for the psi 20which opens the session on Thursday, March 16 with slight increases in 0.18%until the 5,823.58 points, after the start of the opening session. By comparing these data with those of past days, the psi 20 reverses the result of the day before, in which it marked a drop of 1.4%, without being able to establish a clear trend in recent days.
Considering last week, the psi 20 records a decrease of 3.85%; Despite this, year-on-year, it still accumulates an increase of 0.36%. He psi 20 is located at 4.04% below its maximum this year (6,069.06 points) and a 0.18% above its minimum valuation for the current year (5,812.87 points).
a stock market index It is an indicator used to show the price movement of a certain set of assets.it therefore takes data from various companies or sectors of 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 specific needs like having a similar market capitalization or being in the same type of industry, similarly, some indices 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 stock market, business confidence, health of national and global economy and stock investment performance and shares of a company. If investors lack confidence, stock prices will tend to fall.
They are also working to measure the performance of an asset manager and allow investors to compare 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 (as it was the most important industry in the era), as well as 12 shares of other types of companies
Currently in humanity there are various indices and They can be set up according to their geographical location, sectors, size of the company or even the type of asset.For 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 way of being measured, but the main component is the market capitalization of each firm that integrates 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 issued every three or six months, as the case may be.
Reading a stock market index also means observing its evolution over time. Current indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can lead to failures.
If one index adds 500 points in one day, while another only adds 20, it may appear that the former has outperformed. But, if the first started the day at 30,000 points and the other at 300, we can deduce that in percentage, the gains of the second were more remarkable.
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 100that connects 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. Also 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 Asiawe have the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE composite index, which is listed as the largest in China, consisting of the most important companies on the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
As it concerns the Latin American regionyou have the IPCwhich contains the 35 Most Outstanding Companies on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate 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.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
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