Opening of the RTSI of Russia on February 22

No connection change for the RTSI (Russia)which begins on Wednesday February 22 with a variation of the 0.14%until the 930.25 points, after opening. By comparing these data with those of the previous days, the RTSI (Russia) sum of four successive dates in green.

With reference to the profitability of the last seven days, the RTSI (Russia) record an increase of 1.67% even if, on the contrary, from one year to another, there is always a decrease in the 33.54%. He RTSI (Russia) is located at 9.19% below its maximum this year (1,024.44 points) and a 2.6% above its floor rate for the current year (906.71 points).

What is a stock index and what is it used for?

a stock market index is an indicator that shows how the price of a set of assets is changingfor which it uses data from several 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 companies with certain characteristics such as having a similar market capitalization or belonging to the same type of company, furthermore, there are 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 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 see carefully how company stocks tended to rise or fall together in price, he therefore created two indices: one that contained the 20 largest railroad companies (since that was the largest industry in era), as well as 12 shares of other types of companies

Today there are various indices and They can be grouped according to their geography, their sectors, the size of the company or the type of assetFor 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).

How is a stock index measured?

Each stock index has its own calculation method, but the main factor is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares outstanding in 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 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 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, we can deduce that in percentage terms the gains for the second were considerable.

These are the main stock market indices

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, it should be mentioned 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. On the other hand, the 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, is seen as China’s preeminent, made up of the most important 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 the Latin American regionyou 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.

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.