The Hong Kong market begins operations with a downward trend this May 29

The Hong Kong market begins operations with a downward trend this May 29
The Hong Kong market begins operations with a downward trend this May 29

This year the markets have registered constant volatility. (Infobae)

Bearish day for the Hang Seng (Hong Kong)which opens on Wednesday, May 29 with falls of the 0.92%until the 18,647.76 points, after opening. Regarding previous days, the Hang Seng (Hong Kong) adds two consecutive sessions falling.

In relation to the last week, the Hang Seng (Hong Kong) notes a decrease in 2.85%%so that since a year ago it still has a drop in 5.47%. He Hang Seng (Hong Kong) is located a 5.03% below its maximum of this year (19,636.22 points) and a 24.64% above its minimum price so far this year (14,961.18 points).

A stock index It is an indicator that shows how the value of a certain set of assets changesfor which it collects data from different companies or sectors of a fragment of the market.

These indicators are mainly used by the stock exchanges of each country and each of them can be integrated by firms with different specificities such as having a similar market capitalization or belonging to the same type of industry. In addition, 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 do not have confidence, stock prices would tend to fall.

Likewise, they function 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.

This type of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. carefully investigated 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 be grouped according to their geographical location, sectors, company size or also the type of assetFor example, the US Nasdaq index is made up of the 100 largest companies mostly 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 way of calculating, but the main component is the market capitalization of each company that comprises it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total number of shares that are in circulation in the market.

Listed companies are required to present a balance of its composition. Said report must be published every three or six months, as the case may be.

Reading a stock index also requires taking into account its changes over time. New indices always start with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can confuse.

If one index sees a gain of 500 points in one day, while another only gains 20, it might appear that the former performed better. But, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were larger.

Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Also, the S&P 500, 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 firms.

On the other hand, the most important 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 prominent 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 Asiawe have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, which can be considered the main one in China, made up of the most relevant companies on the Shanghai Stock Exchange. Likewise, it is worth mentioning the Hang Seung Index in Hong Kong and KOSPI in South Korea.

Talking about the latin american regionyou have the CPIwhich contains the 35 most prestigious firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of magnate 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.

 
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