Positive session for the Mexican S&P/BMV IPC index, which ended the day on Tuesday, June 11 with slight increases in the 0.42%until the 53,134.06 points. The Mexican S&P/BMV IPC index recorded a maximum volume of 53,567.24 points and a minimum volume of 52,624.87 points. The trading range for the Mexican S&P/BMV IPC index between its highest and lowest point (maximum-minimum) during this day was located in the 1.76%.
Compared to the last week, the Mexican S&P/BMV IPC index marks a drop of 2.47%%so that since a year ago it still maintains a decrease in 0.2%. The Mexican S&P/BMV IPC index is one 9.5% below its maximum of this year (58,711.87 points) and a 2.56% above its minimum price so far this year (51,807.55 points).
A stock index is an indicator that shows how the price of a given set of assets evolvesso it collects 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 firms with certain characteristics 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 an entity. Generally, 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 return 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
Today in our economy there are various indices and They can be agglomerated depending on their geography, sectors, company size or also 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 being measured, but the main factor 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 be published every three or six months, as the case may be.
Reading a stock index also requires being careful about 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 be misleading.
If one index adds 500 points in a day, while another only adds 20, it might appear that the first had a better return. But, 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 considerable.
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, it is necessary to mention 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. 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 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 most solid 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 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.
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.
