PSI 20 moves into positive territory at the start of operations this June 26

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

Good start to the day for him PSI 20which begins the session on Wednesday, June 26 with slight increases in 0.37%until the 6,592 points, after opening. Compared to previous dates, the PSI 20 The tables turn with respect to the previous day, in which a decrease of 0.31% was recorded, without being able to establish a clear trend in recent dates.

If we consider the data of the last seven days, the PSI 20 accumulates a promotion of 0.77%%therefore in the last year it still maintains an increase in 11.35%. He PSI 20 is located a 5.44% below its maximum so far this year (6,971.10 points) and a 8.86% above its minimum rating for the current year (6,055.53 points).

A stock index It is an indicator that shows how the value of a certain set of assets changes.so it takes data from various companies or sectors of a part of the market.

These indicators are mainly used by the stock exchanges of countries and each of them can be integrated by companies with specific requirements such as having a similar market capitalization or belonging to the same type of industry. In addition, 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 a company. If investors do not have confidence, stock prices would tend to fall.

Likewise, they function to measure the performance of an asset manager and allow investors to compare 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 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 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 calculation method, 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 number of shares that are on the market.

Companies that are listed on the stock market are required to present a balance of its composition. Said report must be disclosed every three or six months, as the case may be.

Reading a stock index also implies taking into account its changes over time. New indices always start with a fixed value based on security prices on their 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 achieves 20, it could appear that the first had a better return. But, 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, which is made up of 30 companies. Also, 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 important 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 strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he CAC 40 of 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, which can be considered the most notable in China, made up of the most prominent 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 consolidated firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of magnate Carlos Slim.

Another is the Bovespacomposed of the 50 most important companies on the Sao Paulo Stock Exchange; 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.

 
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