Start of the day of increases for the Swiss Marketwhich begins on Friday, June 28 with promotions of 0.34%until the 12,044.65 points, after the start of the opening session. Regarding previous dates, the Swiss Market puts an end to three sessions of negative trend.
Regarding the last week, the Swiss Market registers an increase in 0.26%%so in the last year it still maintains an increase in 7.7%. He Swiss Market is located a 1.71% below its maximum of the current year (12,254.76 points) and a 8.59% above its lowest rating so far this year (11,091.58 points).
A stock index It is an indicator that shows how the value 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 each country and Each of them can be integrated by companies 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 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 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 analyze comparisons between return 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. 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.
Today there are various indexes and They can join together based on their 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 index has its own way of calculatingbut the main component is the market capitalization of each company that makes it up. This is obtained by multiplying the value of the bond on the corresponding stock exchange by the total number of shares that are in circulation on the market.
The companies that appear on the exchange are obliged 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 indexes always open with a fixed value based on the prices of the securities on your start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.
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 Joneswhich includes 30 companies. 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 unites 100 of the largest non-financial firms.
On the other hand, the most important indexes of Europe are the Eurostoxx 50which covers the 50 largest companies in the eurozone. On the other hand, the DAX 30the main German index containing the most outstanding companies on the Frankfurt Stock Exchange; FTSE 100 of the London Stock Exchange; 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 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Indexis seen as the most representative of China, made up of the most relevant companies of the Shanghai Stock Exchange. The same role is played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Talking about Latin Americayou have the CPIwhich contains the 35 most powerful firms on the Mexican Stock Exchange (BMV)At least a third of them belong to the capital 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; 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 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.
