Bad day for him Hang Seng (Hong Kong)which begins the session on Friday, June 28 with slight drops in the 0.3%until the 17,663.80 pointsafter the start of the opening session. In relation to past dates, the Hang Seng (Hong Kong) accumulates two consecutive sessions in red.
In the last week, the Hang Seng (Hong Kong) marks a drop in 2.02%%so that in year-on-year terms there is still a decrease in 11.29%. He Hang Seng (Hong Kong) is situated a 10.04% below its maximum of the current year (19,636.22 points) and a 18.06% above its minimum valuation of the current year (14,961.18 points).
A stock market index It is an indicator that shows how the value of a given set of assets changes.so it takes data from different 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 characteristics such as having a similar market capitalization or belonging to the same type of industry. Likewise, there are some indexes that only consider a handful of shares to determine their value or others that consider hundreds of shares.
Stock 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 lack confidence, share 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 journalist Charles H. Dow. He looked closely at 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 humanity there are various indices and They can be grouped based on their geographic location, sectors, company size or even asset type.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 calculation methodbut the main factor is the market capitalization of each company that makes it up. This is obtained by multiplying the value of the share on the corresponding stock exchange on the day by the total number of shares that are in circulation on the market.
Listed companies are required to: to present a balance sheet of its composition. This report must be submitted every three or six months, as appropriate.
Reading a stock index also requires paying attention to its changes over time. Current indexes always start with a fixed value based on the prices of securities on their start date, but not everyone follows this method. As a result, it can lead to inaccuracies.
If one index sees an increase of 500 points in a day, while another only adds 20, it might seem that the former had a better return. But, if the former started the day at 30,000 points and the other at 300, it can be concluded that, in percentage terms, the gains for the latter were larger.
Between the Major US stock indices 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 unites 100 of the largest non-financial firms.
On the other hand, the most important indexes of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. He too DAX 30the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; FTSE 100 from the London Stock Exchange; he CAC 40 of the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In the asian continentthe main stock market indices are the Nikkei 225made up of the 225 largest companies on the Tokyo Stock Exchange. It also includes the SSE Composite Indexwhich is the most representative of China, made up of the most relevant companies of the Shanghai Stock Exchange. Likewise, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Talking about the Latin American regionyou have the CPIwhich contains the 35 most influential 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; the MSCI COLCAP from Colombia; he IBC of Caracas, made up of 6 companies from Venezuela.
There are also other types of global stock market 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.
