Good login for the Nikkei 225which begins the session on Friday, June 28 with increases in 0.61%until the 39,582.65 points, after opening. In relation to the variations of this day with respect to past days, the Nikkei 225 changes the meaning of the previous data, which resulted in a decrease of 1.26%, without being able to establish a stable trend recently.
If we consider the data from the last week, the Nikkei 225 registers an increase in 2.56%%so that for a year now it still maintains an increase of 17.89%. He Nikkei 225 is situated a 3.19% below its maximum of this year (40,888.43 points) and a 18.91% above its lowest rating so far this year (33,288.29 points).
A stock index It is an indicator that shows how the price of a given set of assets changes.for which it uses data from various companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of various nations 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 business, in addition, 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 sentiment, the health of the national and global economy, and the performance of stock investments and shares in a company. If investors lack confidence, the cost of shares would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make comparisons 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 carefully observed 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 there are various indices and They can be grouped together based on their geographic location, sectors, company size or even the type of asset.For example, the American 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 market index has its own way of being measured., but the main component 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. This report must be submitted every three or six months, as the case may be.
Reading a stock index also requires analyzing its variations over time. New indices always start with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be confusing.
If one index adds 500 points in a day, while another only adds 20, it might appear that the first one performed better. However, if the first started the day at 30,000 points and the other at 300, it can be deduced that, in percentage terms, the gains for the second were greater.
Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jonesmade up of 30 companies. Likewise, the S&P 500which 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 indexes 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 of the London Stock Exchange; CAC 40 from 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 Indexis seen as China’s most notable, made up of the most prominent companies on the Shanghai Stock Exchange. The same role is played by the Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about the latin american regionyou have the CPIwhich contains the 35 most prestigious 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 Bovespacomposed of the 50 most important companies on the Sao Paulo Stock Exchange; Merval from Argentina; the IPSA From Chile; he MSCI COLCAP from Colombia; he IBC of Caracas, made up of 6 companies from Venezuela.
Also, there are other types of global stock indices such as MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there is the MSCI Worldwhich includes 1,600 companies from 23 developed countries; 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.
