The Hong Kong market opens the day with a downward trend on June 24

The Hong Kong market opens the day with a downward trend on June 24
The Hong Kong market opens the day with a downward trend on June 24

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

Negative session opening for Hang Seng (Hong Kong)which begins the session on Monday, June 24 with slight drops in the 0.69%until the 17,903.30 points, after the start of the opening session. Regarding the variations of this day with respect to previous dates, the Hang Seng (Hong Kong) accumulates three successive days of negative numbers.

In the last week, the Hang Seng (Hong Kong) notes a drop in 0.18%%for this reason in the last year it still maintains a decrease in 8.29%. He Hang Seng (Hong Kong) is located a 8.83% below its maximum of this year (19,636.22 points) and a 19.67% above its minimum rating so far this year (14,961.18 points).

A stock index It is an indicator that is used to know the evolution of the value of a certain set of assetsso it takes data from several companies or sectors of a part of the market.

These indicators are mainly used by the stock exchanges of various countries and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same 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 an entity. If investors lack confidence, stock prices tend to fall.

Likewise, they function to measure the performance of an asset manager and allow investors to analyze comparisons 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. 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 humanity there are various indices and They can be brought together based on their geographic location, sectors, company size or even asset type.For 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 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 security in the corresponding stock market by the total number of shares that are on the market.

Firms that appear on the stock market are obliged to present a balance of its composition. Said report must be notified every three or six months, as appropriate.

Reading a stock index also requires observing 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 be misleading.

If one index grows 500 points in a day, while another only adds 20, it might appear that the first had a better return. 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 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 comprises 500 of the largest companies on the New York Stock Exchange. Finally, there appears 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. 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 the asian continentthe 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 can be considered the most notable 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.

Talking about Latin Americayou have the CPIwhich contains the 35 most outstanding 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.

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.

 
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