Bearish session for the PSI 20which opens the session on Friday, June 14 with drops in 0.49%until the 6,533.45 points, after opening. In relation to the variations of this day with respect to past dates, the PSI 20 accumulates two consecutive sessions in negative values.
In the last seven days, the PSI 20 registers a decrease in 3.02%%; Despite this, for a year now it has still accumulated a rise in 8.14%. He PSI 20 is located a 6.28% below its maximum of this year (6,971.10 points) and a 7.89% 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 certain set of assets evolvesfor which it collects 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 requirements 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 lack confidence, stock prices 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 investigated 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 congregate based on their geography, sectors, company size or even asset typeFor 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 share in the corresponding stock market by the total shares that are in the hands of investors.
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 being careful about its variations 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 lead to inaccuracies.
If one index grows 500 points in one 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, it can be derived that, in percentage terms, the gains for the second were greater.
Between the main stock indices in the American Union 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 unites 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 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, is seen 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 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.
