With a downward trend, PSI 20 reopens the day of March 6

Negative day opening for the psi 20which begins the session on Monday March 6 with slight declines in the 0.4%until the 6,044.50 points, after opening. In relation to the variations of this day compared to the previous days, the psi 20 ends two consecutive sessions with a positive trend.

Last week the psi 20 gets a raise 0.31% and last year it still maintains an increase of 8.43%. He psi 20 is located at 0.4% below its maximum this year (6,069.06 points) and a 3.69% above its minimum valuation for the current year (5,829.15 points).

a stock market index It is an indicator that is used to know the evolution of the price of a certain set of assets.for which it collects data from various companies or sectors in 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 companies with specific characteristics like having a similar market capitalization or being in the same type of 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 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 make comparisons between return 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. carefully observed how the stock prices of companies tended to rise or fall together, so he created two indices: one containing the 20 largest railway companies (since this was the largest industry in the world). era), as well as 12 shares of other types of companies

Currently in humanity there are various indices and they can cluster based on their 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 security on the corresponding stock market by the total number of shares outstanding on the market.

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 requires noticing its changes over time. Current indices always open at 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 scores 500 points in one day, while another only scores 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 of 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 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. 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 the asian continentthe 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, is considered the most notable in China, consisting of the most important companies of 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 Outstanding 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.

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.