Optimistic opening for the Swiss marketwhich begins the day of Tuesday, March 14 with slight increases in 0.16%until the 10,649.20 points, after opening. Compared to previous days, the Swiss market short with the negative market price streak of the last six sessions.
Regarding the last seven days, the Swiss market marks a decrease of 3.75% and for a year it still maintains a drop in 10.52%. He Swiss market is located at 6.88% below its maximum this year (11,435.99 points) and a 0.16% above its minimum valuation for the current year (10,632.05 points).
a stock market index is an indicator that shows how the value of a given set of assets is changingit therefore collects data from different companies or sectors of a part of the market.
These indicators are mainly used by stock exchanges in various countries and each of them can be integrated by companies with specific characteristics like having a similar market capitalization or belonging to the same industry, there are also 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 the company. Generally, if investors are not confident, stock values 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 study how company stocks tended to rise or fall together, he created two indices: one that contained the 20 largest railway companies (as it was the largest industry at the time) , as well as 12 shares of other types of companies
There are currently various indices and They can join a union according to their geography, their sectors, the size of the companies or the type of assetFor example, the American Nasdaq index is made up of the 100 largest companies mainly related to technology 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 issued 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 start with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it may seem misleading.
If one index gains 500 points in one day, while another only gains 20, it may seem that the former has outperformed. 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 greater.
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 comes 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. 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 Asiathe main stock market indices are the Nikki 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also SSE composite index, which is listed as the most notable in China, consisting of the most important companies on the Shanghai Stock Exchange. The same role played by 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 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.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
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