The South Korean market opened lower on March 10

Unfavorable day for him KOSPIwhich inaugurates the day of Friday, March 10 with notable drops in 1.31%until the 2,387.45 points, after opening. Regarding the previous days, the KOSPI accumulates three consecutive negative sessions.

Compared to last week, the KOSPI marks a decrease of 1.83% and last year it still maintains a drop of 12.01%. He KOSPI is located 3.89% below its maximum this year (2,484.02 points) and a 7.61% above its floor rate for the current year (2,218.68 points).

a stock market index is an indicator that measures the evolution of the value of a set of assetsfor which it uses data from different companies or sectors of a market fragment.

These indicators are mainly used by the exchanges of each country and each of them can be integrated by companies with certain characteristics like having a similar market capitalization or belonging to the same industry, moreover, there are some indices that 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 an entity. Generally, 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 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

There are currently various indices and They can be grouped according to their location, sectors, company size or 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 way of being measured, but the main factor is the market capitalization of each company that incorporates it. This is obtained by multiplying the value of the security 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 submitted every three or six months, as the case may be.

Reading a stock market index also means examining its evolution over time. New indices always appear with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be misleading.

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 deduce that in percentage, the gains of the second were greater.

Between the major US stock indices is the Dow Jones Industrial Average, better known as the Dow Jones, of which 30 companies are part. Also S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention 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 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 Asiawe have the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE composite index, is considered the preeminent 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 the Latin American regionyou have the IPCwhich contains the 35 most prestigious 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.

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.