Bullish start of the day for the PSI 20which opens on Thursday, June 20, with notable increases in 0.89%until the 6,599.75 points, after opening. Regarding the changes of this day compared to previous days, the PSI 20 reverses the data from the previous day, in which it ended with a decrease of 0.78%, being unable to establish a stable trend lately.
In relation to the profitability of the last seven days, the PSI 20 records an increase in 0.52%%so that in the last year it still accumulates an increase of 11.7%. He PSI 20 is located a 5.33% below its maximum so far this year (6,971.10 points) and a 8.99% above its minimum price of the current year (6,055.53 points).
A stock index It is an indicator that shows how the price of a certain set of assets changes.so it collects data from different 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 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 an entity. 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 make comparisons 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. 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
Nowadays 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 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 security in the corresponding stock market by the total shares that are in the hands of investors.
Firms that appear on the stock market are required to present a balance of its composition. This report must be published every three or six months, as appropriate.
Reading a stock index also requires being careful about its changes over time. New indices always appear 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 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 derived that, in percentage terms, the gains for the second were more notable.
Between the main stock indices in the American Union There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, there appears Nasdaq 100which links 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 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 Asiawe 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. Likewise, it is worth mentioning the 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.
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.
