Rising session opening for the BEL-20 INDEXwhich opens the day on Wednesday, June 26 with slight increases in 0.17%until the 3,965.84 points, after opening. Comparing this data with that of past dates, the BEL-20 INDEX reverses the result of the previous day, in which it ended with a drop of 1.96%, showing that it is not able to consolidate a clear trend lately.
If we consider the data of the last seven days, the BEL-20 INDEX accumulates an increase of 2.71%%which is why it has still maintained an increase of one year 11.93%. He BEL-20 INDEX is located a 1.57% below its maximum of this year (4,029.25 points) and a 11.62% above its minimum price 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 it uses data from different companies or sectors of a part 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. If investors do not have confidence, stock prices would tend to fall.
They also 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. He carefully observed how company stocks tended to rise and fall in price together, so he created two indexes: one containing the 20 largest railroad companies (since it was the most important industry at the time), as well as 12 stocks from other types of businesses.
Currently in our economy there are various indices and They can be associated based on their geography, 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 being measuredbut the main component is the market capitalization of each company that makes up the bond. This is obtained by multiplying the value of the bond on the corresponding stock exchange by the total number of shares that are in circulation on the market.
Companies listed on the stock exchange are required to present a balance of its composition. Said report must be published every three or six months, as the case may be.
Reading a stock index also involves observing its changes over time. New indices always start with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can confuse.
If one index gains 500 points in one day, while another only gains 20, it might appear that the first index performed better. However, if the first started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the second were more notable.
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 includes 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 outstanding indices of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. He too 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 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 Indexis seen as the most solid in China, made up of the most prominent companies of the Shanghai Stock Exchange. The same role is played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Talking about Latin Americayou have the CPIwhich contains the 35 most consolidated firms on the Mexican Stock Exchange (BMV)At least a third of them belong to the capital 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.
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 Marketsmade 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.
