This year, the markets have experienced constant volatility. (Infobase)

Positive opening for the Hang Seng (Hong Kong)which opens Friday, March 3 with increases of 1.07%until the 20,648.78 dots, after the start of the opening session. By comparing these data with those of past days, the Hang Seng (Hong Kong) reverses the situation on that of the previous session, when it marked a decline of 4.21%, showing that it is unable to establish a stable trend recently.

If we consider the data of the last seven days, the Hang Seng (Hong Kong) gets a promotion from 3.19%; On the other hand, last year, it still maintains a decrease in 12.73%. He Hang Seng (Hong Kong) is located 8.99% below its maximum this year (22,688.90 points) and a 4.36% above its minimum mark for the current year (19,785.94 points).

a stock market index It is an indicator used to show the evolution of the price of a set of assets.for which it uses data from various companies or sectors of a market fragment.

These indicators are mainly used by the stock markets of various countries and each of them can be integrated by firms with specific characteristics like having a similar market capitalization or belonging to the same type of company, there are also some indices that 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 an entity. 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 make a comparison 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. carefully observed how the stock prices of companies tended to rise or fall together, so he created two indices: one containing the 20 largest railway companies (since this was the largest industry in the world). era), as well as 12 shares of other types of companies

Today in our economy there are various indices and They can group together based on geography, industries, company size, or even asset classFor example, the U.S. Nasdaq index is made up of the 100 largest companies with broad technology connections 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 examining its evolution over time. New indices always appear with a fixed value based on security prices on their start date, but not everyone follows this method. It can therefore be a source of misunderstanding.

If one index sees an increase of 500 points in one day, while another only gets 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, it can be concluded that in percentage terms the gains for the second were greater.

Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, made up of 30 companies. Also 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 most outstanding 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 the asian continentwe have the Nikki 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 strongest in China, made up of the most prominent companies on 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 Outstanding Companies on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital 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.

Similarly, 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.

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