Bullish opening for the BEL-20 INDEXwhich begins the session on Thursday, June 27 with slight increases in the 0.16%until the 3,921.58 points, after the start of the opening session. If we compare the value with previous days, the BEL-20 INDEX breaks the negative streak of market prices of the last two sessions.
If we consider the data from the last week, the BEL-20 INDEX registers an increase of 0.83%% and in interannual terms it still maintains an increase of 10.71%. He BEL-20 INDEX is located a 2.67% below its maximum of this year (4,029.25 points) and a 10.38% above its minimum valuation so far this year (3,552.84 points).
A stock index It is an indicator that measures how the value of a set of assets evolvesfor which it collects 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 specific requirements such as having a similar market capitalization or belonging to the same type of industry. In addition, there are some indexes that only take into account a handful of stocks to determine their value or others that consider hundreds of stocks.
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 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. carefully analyzed 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 our economy there are various indices and They can be agglomerated depending on their geography, sectors, company size or even 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 way of being measured, 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 share in the corresponding stock market by the total shares that are in the hands of investors.
Firms that are on the stock market are obliged to present a balance of its composition. This report must be notified every three or six months, as the case may be.
Reading a stock index also means noticing its evolution over time. New 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 inaccuracies.
If one index gains 500 points in one day, while another only adds 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 considerable.
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 includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the 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 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 representative of 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 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 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; the 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 planet.
