bad day for him FTSE MIB IDXwhich closed on Thursday, June 27, with notable falls in 1.06%until the 33,186.89 points. He FTSE MIB IDX recorded the maximum number of 33,609.41 points and a minimum volume of 33,161.67 points. The trading range for the FTSE MIB IDX between its highest and lowest point (maximum-minimum) during this day it stood at the 1.33%.
In the last week, the FTSE MIB IDX notes a decrease in 1.45%% although, on the contrary, for a year now it has still maintained an increase in 17.55%. He FTSE MIB IDX is situated a 6.28% below its maximum of this year (35,410 points) and a 10.34% above its minimum price so far this year (30,077 points).
A stock index is an indicator that shows how the value of a certain set of assets changesso it takes data from several companies or sectors of a part of the market.
These indicators are mainly used by the stock exchanges of various countries 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. Likewise, 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 an entity. Generally, if investors lack confidence, stock prices tend to fall.
They also function to measure the performance of an asset manager and allow investors to make a comparison 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. 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 in humanity there are various indices and They can be grouped based on geography, sectors, company size or also the type of asset.For example, the US Nasdaq index is made up of the 100 largest companies mostly 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 calculated., but the main factor is the market capitalization of each firm 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 present a balance of its composition. Said report must be notified every three or six months, as the case may be.
Reading a stock index also means taking into account its changes over time. Current indices always start with a fixed value based on stock prices on your 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 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, it can be derived that, in percentage terms, the gains for the second were more important.
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Likewise, the S&P 500which includes 500 of the largest companies on the New York Stock Exchange. Finally, there is 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. On the other hand, the 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 the asian continentwe 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 solid in 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 outstanding firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by 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 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.
