Raising session for the BEL-20 INDEXwhich ended the day on Monday, June 24 with large increases in 1.96%until the 3,970.37 points. He BEL-20 INDEX reached a maximum volume of 3,970.37 points and the minimum number of 3,932.75 points. The trading range for the BEL-20 INDEX between its highest and lowest point (maximum-minimum) during this day it stood at the 0.95%.
In the last seven days, the BEL-20 INDEX registers an increase of 3.59%% and in the last year it still maintains an increase in 13.67%. He BEL-20 INDEX is located a 1.46% below its maximum so far this year (4,029.25 points) and a 11.75% above its minimum valuation of the current year (3,552.84 points).
A stock index It is an indicator that measures how the price of a certain set of assets evolvesso you need to have data from several companies or sectors in a part of the market.
These indicators are mainly used by the countries’ stock exchanges 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 industry, there are also 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 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
Nowadays there are various indices and They can be associated based on their geographical location, sectors, company size or even the type of assetFor 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 calculating, 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 in circulation in the market.
Firms listed on the stock exchange are required to present a balance of its composition. Said report must be made public every three or six months, as the case may be.
Reading a stock index also involves observing its evolution 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 failures.
If one index gains 500 points in one day, while another only gains 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 deduced that, in percentage terms, the gains for the second were considerable.
Between the main 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, we must mention 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. Furthermore, the DAX 30, the main German index that contains the most prominent 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 representative of 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 consolidated firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of 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.
Finally, 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.
