The South Korean index ended trading higher on June 11

The South Korean index ended trading higher on June 11
The South Korean index ended trading higher on June 11

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

Positive session for him KOSPIwhich ended on Tuesday, June 11, with slight rises in the 0.15%until the 2,705.32 points. He KOSPI marked a maximum volume of 2,718.88 points and the minimum number of 2,702.17 points. The trading range for the KOSPI between its highest and lowest point (maximum-minimum) during this day it stood at the 0.61%.

If we consider the data from the last week, the KOSPI notes an increase in 0.85%% and for a year it has still maintained an increase in 4.97%. He KOSPI is located a 1.88% below its maximum of this year (2,757.09 points) and a 11.06% above its minimum price so far this year (2,435.90 points).

A stock index is an indicator that shows how the value of a given set of assets changesso you need to have data from various companies or sectors of a fragment of the market.

These indicators are mainly used by the stock exchanges of various countries and each of them can be integrated by firms with certain characteristics such as having a similar market capitalization or belonging to the same type of business. 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. If investors do not have confidence, stock values ​​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. 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

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 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 way of calculating, but the main component is the market capitalization of each firm 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.

Companies listed on the stock exchange are required to present a balance of its composition. This report must be released every three or six months, as appropriate.

Reading a stock index also requires paying attention to its changes over time. Current indices always open 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 grows 500 points in a day, while another only gains 20, it might appear that the first one 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 greater.

Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Likewise, the S&P 500, which includes 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 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 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 Asiathe 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, which appears as the predominant one in 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 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.

Likewise, 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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