Positive opening of the day for the BIST 100which begins the session on Friday, June 7 with slight increases in 0.28%until the 10,308.77 points, after opening. If we compare the figure with previous days, the BIST 100 With this information, the negative streak that marked the previous three days was interrupted.
If we consider the data from the last week, the BIST 100 marks a decrease in 0.88%%; On the contrary, in year-on-year terms it still accumulates . He BIST 100 is located a 5.42% below its maximum of this year (10,899.30 points) and a 39.08% above its minimum rating for the current year (7,412 points).
A stock index It is an indicator that shows how the value of a given 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 stock exchanges of different countries around the world and each of them can be integrated by companies with different specificities such as having a similar market capitalization or belonging to the same industry. In addition, there are some indices that only take into account 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. Generally, if investors lack confidence, stock prices 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. observed carefully 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 there are various indices and They can join forces based on their location, 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 calculation method, but the main component is the market capitalization of each firm that comprises it. This is obtained by multiplying the day’s value of the security in the corresponding stock market by the total number of shares that are on the market.
Firms listed on the stock exchange 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 involves observing its evolution 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 lead to failures.
If one index adds 500 points in a day, while another only adds 20, it might appear that the first had a better return. 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 considerable.
Between the major US stock indices 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, there appears Nasdaq 100which brings together 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. He too 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. Also, the SSE Composite Index, which appears as the predominant one in China, made up of the most relevant 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 consolidated 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.
