Continuous session opening for PSI 20which begins on Monday, June 24 with a variation of the 0.12%until the 6,578.35 points, after the start of the opening session. In relation to days gone by, the PSI 20 The tables turn with respect to the previous day, where it marked a decrease of 1.67%, showing that it is unable to establish a clear trend lately.
Taking into account the last seven days, the PSI 20 registers an increase in 0.9%% and for a year it has still accumulated a rise of 10.9%. He PSI 20 is located a 5.63% below its maximum of this year (6,971.10 points) and a 8.63% above its minimum price so far this year (6,055.53 points).
A stock index is an indicator used to show the evolution of the price of a certain set of assetsso it takes data from different 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 different specificities such as having a similar market capitalization or belonging to the same type of industry. In addition, 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 lack confidence, stock prices 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
Currently in humanity there are various indices and They can be agglomerated depending on their location, sectors, company size or also the type of asset.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 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 security in the corresponding stock market by the total number of shares that are in circulation in the market.
Firms listed on the stock market are required to present a balance of its composition. Said report must be notified every three or six months, as appropriate.
Reading a stock index also involves analyzing its changes over time. New indices always appear 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 concluded 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, of which 30 companies are part. Also, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally comes the 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 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, is seen as 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 the latin american regionyou 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.
