Opening of the Hang Seng: gaining ground on March 21

Good start to the day Hang Seng (Hong Kong)which begins the session of Tuesday, March 21 with slight increases in the 0.73%until the 19,139.70 points, after the start of the opening session. In relation to the variations of this day compared to the previous days, the Hang Seng (Hong Kong) reverses the result of the previous day, in which it closed with a drop of 1.64%, without being able to establish a stable trend lately.

Considering last week, the Hang Seng (Hong Kong) records a decline 0.56%so that in the last year it still maintains a decrease in the 6.88%. He Hang Seng (Hong Kong) is located 15.64% below its maximum this year (22,688.90 points) and a 0.73% above its minimum price for the current year (19,000.71 points).

a stock market index is an indicator that shows how the price of a given set of assets is changingit therefore collects data from various companies or sectors in a part of the market.

These indicators are mainly used by the exchanges of the countries and each of them can be integrated by signatures with different specificities 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 the stock market, business confidence, the health of the national and global economy and the performance of stock investments and shares of the company. Generally, if investors are not confident, stock prices tend to fall.

They are also working to measure the performance of an asset manager and they allow investors to have comparisons between 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 (because it was the largest industry in the era), as well as 12 shares of other types of companies

Today in humanity there are various indices and They can associate 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 calculation method, but the main component is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the bond on the corresponding stock market by the total number of shares that are on the market.

Listed companies are required to present a balance sheet of its composition. This report must be made public every three or six months, as the case may be.

Reading a stock market index also requires noticing its changes over time. Current indices always open at a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it may seem misleading.

If one index increases by 500 points in one day, while another adds only 20, it may seem that the former has performed better. However, if the first started the day at 30,000 points and the other at 300, we can conclude that in percentage terms the gains of the second were higher.

Between the major US stock indices 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 comes the Nasdaq 100which associates 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 most important companies of 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 Asiathe main stock market indices are 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 most representative of China, consisting of the most important companies of the Shanghai Stock Exchange. Also, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

As it concerns Latin Americayou have the IPCwhich contains the 35 most influential companies on the Mexican Stock Exchange (BMV). At least a third of them belong to 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.