Adverse day for BEL-20 INDEXwhich begins the day on Thursday, May 9, with notable drops in the 0.94%until the 3,977.79 points, after the start of the opening session. If we compare the data with previous days, the BEL-20 INDEX stops with the positive streak of market prices of the last five days.
In the last week, the BEL-20 INDEX scores a promotion of 2.17%so that in year-on-year terms there is still an increase in 6.07%. He BEL-20 INDEX is located a 0.94% below its maximum so far this year (4,015.67 points) and a 11.96% above its minimum price of the current year (3,552.84 points).
A stock index It is an indicator that measures how the value of a certain set of assets evolvesso it collects data from several companies or sectors of a fragment of the market.
These indicators are mainly used by the countries’ stock exchanges and each of them can be integrated by firms with different specificities such as having a similar market capitalization or belonging to the same industry. Likewise, there are some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.
Stock market indices serve as indicator of stock market confidence, business confidence, health of the national and global economy, and stock investment performance and shares of a company. If investors lack confidence, stock values tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make a comparison between profitability and risk; measure the opportunities of a financial asset or create portfolios.
This type of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. looked closely at how company shares tended to rise or fall in price together, so he created two indices: one that contained the 20 most important railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses
Nowadays there are various indices and They can join together based on their geography, sectors, company size or also the type of asset.For example, the US Nasdaq index is made up of the 100 largest companies largely 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 factor is the market capitalization of each firm that comprises it. This is obtained by multiplying the day’s value of the share in the corresponding stock market by the total number of shares that are on the market.
Companies that appear on the stock market are required to present a balance of its composition. Said report must be made public every three or six months, as the case may be.
Reading a stock index also requires taking into account its evolution over time. New indices always start with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can be misleading.
If one index gains 500 points in one day, while another only adds 20, it might appear that the first index performed better. However, if the first started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the second were larger.
Between the main stock indices in the American Union There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention the Nasdaq 100which unites 100 of the largest non-financial firms.
On the other hand, the most notable indices of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. On the other hand, the DAX 30, the main German index that contains the most outstanding companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he CAC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In the asian continentthe main stock indices are the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, is seen as the most representative of China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about the latin american regionyou have the CPIwhich contains the 35 most powerful firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by tycoon Carlos Slim.
Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP from Colombia; 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 in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there is the MSCI World, which includes 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 firms on the entire planet.
