Negative day for the Mexican S&P/BMV IPC index, which begins the session on Thursday, June 27 with declines of 0.61%until the 52,145.87 points, after the start of the opening session. Comparing this data with that of previous dates, the Mexican S&P/BMV IPC index changes the meaning of the previous data, in which it ended with an increase of 0.26%, showing itself unable to establish a clear trend lately.
In the last seven days, the Mexican S&P/BMV IPC index accumulates a decrease of 1.22%%so in year-on-year terms there is still a decrease in the 1.65%. The Mexican S&P/BMV IPC index is at a 11.18% below its maximum so far this year (58,711.87 points) and a 0.65% above its minimum valuation of the current year (51,807.55 points).
A stock market index It is an indicator that measures the evolution of the value of a given set of assets.for which it uses data from different companies or sectors of a fragment of the market.
These indicators are mainly used by the countries’ stock exchanges 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 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 the journalist Charles H. Dow. carefully investigated 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 there are various indices and They can congregate based on their geography, sectors, company size or even asset typeFor example, the American 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 share in the corresponding stock market by the total number of shares that are in circulation in the market.
Companies listed on the stock exchange are required to to present a balance sheet of its composition. Said report must be notified every three or six months, as the case may be.
Reading a stock index also requires noticing its changes over time. New indices always open with a fixed value based on security prices on their 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. However, 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 more important.
Between the Major stock market indices in the United States There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally comes the Nasdaq 100which brings together 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. He too DAX 30, the main German index that contains the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 of the London Stock Exchange; CAC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In Asiathe main stock market indices are the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, is seen as the main one in 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 outstanding 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.
