unfavorable session for psi 20which opens on Monday, March 13 with sharp declines in the 2.2%until the 5,892.90 points, after the start of the opening session. If we compare the value with the previous days, the psi 20 chains two consecutive sessions in negative values.
With reference to the profitability of the last seven days, the psi 20 records a decrease of 2.49% even if, on the contrary, from one year to the next, it still accumulates an increase of 3.45%. He psi 20 is located at 2.9% below its maximum this year (6,069.06 points) and a 1.09% above its floor rate for the current year (5,829.15 points).
a stock market index is an indicator that shows how the value of a certain set of assets is changingfor which it collects data from different companies or sectors of a part of the market.
These indicators are mainly used by the stock markets of various 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 stock market, business confidence, health of national and global economy and stock investment performance and shares of a company. Generally, if investors are not confident, 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 (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 be grouped according to their location, 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).
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 current value of the bond on the corresponding stock market by the total number of shares that are in the hands of the investors.
Listed companies are required to present a balance sheet of its composition. This report must be notified every three or six months, as the case may be.
Reading a stock market index also means taking care of its variations over time. New indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, this may lead to inaccuracies.
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 conclude that in terms of percentage, the gains of the second were more remarkable.
Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jonescomposed of 30 companies, 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 most outstanding companies on the Frankfurt Stock Exchange; there FTSE100 the London Stock Exchange; he CAC40 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 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 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.
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.