The Hong Kong market starts trading with a trend in negative territory on March 14

bad day for Hang Seng (Hong Kong)which starts on Tuesday, March 14 with slight drops in 0.73%until the 19,551.26 points, after opening. In relation to the variations of this day compared to the previous dates, the Hang Seng (Hong Kong) reverses the data of the previous session where it had risen by 3.04%, lately showing a lack of stability in the result.

Considering the last seven days, the Hang Seng (Hong Kong) records a decrease of 4.79% and from one year to the next, there is always a decrease in 10.75%. He Hang Seng (Hong Kong) is located at 13.83% below its maximum this year (22,688.90 points) and a 1.2% above its floor price for the current year (19,319.92 points).

a stock market index is an indicator that measures the evolution of the value of a set of assetsit therefore collects data from different companies or sectors of a market fragment.

These indicators are mainly used by the stock markets of different countries of the world and each of them can be integrated by companies 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 market indices serve as indicator of confidence in stock market, business confidence, health of national and global economy and stock investment performance and shares of the company. If investors lack confidence, stock prices will 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 (as it was the most important industry in the era), as well as 12 shares of other types of companies

Today in humanity there are various indices and they can partner based on geography, industries, company size, or even asset typeFor 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 way of being measured, but the main component is the market capitalization of each company that incorporates it. This is obtained by multiplying the daily value of the share 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 published every three or six months, as the case may be.

Reading a stock market index also involves taking into account 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. So it can be confusing.

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

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 comes the Nasdaq 100which includes 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. Him too 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 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 can be considered the most notable in 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 the Latin American regionyou have the IPCwhich contains the 35 most consolidated 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.

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.