Opening of the main index of the Vienna Stock Exchange this June 20

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

Opening of session of slight movements for the ATXwhich opens the session on Thursday, June 20 with a variation of the 0.1%until the 3,599.52 points, after the start of the opening session. Regarding days gone by, the ATX Add four successive sessions of positive numbers.

In reference to the profitability of the last week, the ATX accumulates a decrease in 0.12%%; However, since a year ago it still has a rise in 17.77%. He ATX is located a 4.66% below its maximum so far this year (3,775.49 points) and a 8.19% above its minimum price of the current year (3,327.04 points).

A stock index is an indicator that shows how the value of a given set of assets changesso it collects data from several companies or sectors of a fragment of the market.

These indicators are mainly used by the stock exchanges of each country and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same type of industry. Likewise, there are some indices that only consider 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 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 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 together in price, 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 in humanity there are various indices and They can join together based on their geographical 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 way of being measured, 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 appear on the stock exchange are required to present a balance of its composition. This report must be made public every three or six months, as appropriate.

Reading a stock index also requires taking into account its changes over time. New indices always open with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can lead to failures.

If one index gains 500 points in one day, while another only adds 20, it might appear that the first index performed better. But, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were more important.

Between the main stock indices in the American Union 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, we must not forget the Nasdaq 100which brings together 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. 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 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, is seen as the main one in China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and KOSPI in South Korea.

With regards to Latin Americayou have the CPIwhich contains the 35 most consolidated firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by 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.

Also, there are other types of global stock indices such as 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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