Bearish day for the FTSE MIB IDXwhich ended on Tuesday, June 11, with large drops in the 1.93%until the 33,874.48 points. He FTSE MIB IDX marked the maximum number of 34,638.61 points and a minimum volume of 33,722.50 points. The trading range for the FTSE MIB IDX between its highest and lowest point (maximum-minimum) during this day it stood at the 2.64%.
Regarding the last week, the FTSE MIB IDX accumulates a decrease in 1.17%%; Despite this, in year-on-year terms it still maintains an increase in 21.81%. He FTSE MIB IDX is located a 4.34% below its maximum of this year (35,410 points) and a 12.63% above its minimum price of the current year (30,077 points).
A stock index is an indicator that shows how the value of a certain set of assets changesso it uses data from different companies or sectors of a part 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 characteristics such as having a similar market capitalization or belonging to the same type of business. Likewise, 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. 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
Today in our economy there are various indices and They can be grouped based on 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 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 component is the market capitalization of each company 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 are listed on the stock market are required to present a balance of its composition. Said report must come to light every three or six months, as the case may be.
Reading a stock index also means noticing its changes over time. Current indices always start with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can confuse.
If one index adds 500 points in a day, while another only achieves 20, it might appear that the first one performed better. But, 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, which is made up of 30 companies. Also, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, there appears 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. Furthermore, the DAX 30, the main German index that contains the strongest 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. There is also the SSE Composite Index, which appears as the main 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 Latin Americayou have the CPIwhich contains the 35 most influential 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.
