Adverse session for PSI 20which begins on Tuesday, June 4, with notable falls in 1.02%until the 6,847.76 points, after the start of the opening session. In relation to the changes of this day with respect to previous days, the PSI 20 stops with the positive streak of market prices of the last three days.
In relation to the profitability of the last seven days, the PSI 20 registers a drop in 0.9%%; However, in interannual terms, there is still an increase in the 15.02%. He PSI 20 is located a 1.77% below its maximum of this year (6,971.10 points) and a 13.08% above its minimum price so far this year (6,055.53 points).
A stock index It is an indicator that shows how the value of a given set of assets changes.so it uses data from various companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of different countries around the world and each of them can be integrated by companies with specific requirements such as having a similar market capitalization or belonging to the same type of industry. Also, 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 an entity. 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 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. carefully analyzed 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
Currently in our economy there are various indices and They can be agglomerated depending on their geography, sectors, company size or even the type of asset.For 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 share in the corresponding stock market by the total number of shares that are in circulation in the market.
Firms listed 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 appropriate.
Reading a stock index also means noticing its changes 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 sees an increase of 500 points in one day, while another only adds 20, it could appear that the first had a better return. However, if the first started the day at 30,000 points and the other at 300, it can be derived that, in percentage terms, the gains for the second were more notable.
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 comprises 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100which brings together 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 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 continentwe have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which appears as the most representative of China, made up of the most prominent 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 Latin Americayou have the CPIwhich contains the 35 most outstanding firms 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, 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.
