Bullish day for KOSPIwhich closed on Friday, June 28 with slight increases in 0.49%until the 2,797.82 points. He KOSPI recorded the maximum number of 2,797.82 points and the minimum number of 2,782.40 points. The trading range for the KOSPI between its highest and lowest point (maximum-minimum) during this day it stood at the 0.55%.
In the last week, the KOSPI accumulates an increase of 0.49%%which is why in year-on-year terms it still accumulates an increase of 7.41%. He KOSPI is located a 0.35% below its maximum of the current year (2,807.63 points) and a 14.86% above its minimum valuation so far this year (2,435.90 points).
A stock index It is an indicator that measures how the value of a set of assets evolveswhich collects data from several companies or sectors of a part of the market.
These indicators are mainly used by the stock exchanges of different countries around the world and each of them can be integrated by firms with specific characteristics 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 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. Generally, if investors lack confidence, share prices tend to fall.
Likewise, they function to measure the performance of an asset manager and allow a comparison to be made 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 analyzed 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 in our economy there are various indices and They can be grouped based on their location, sectors, company size or even the type of asset.For example, the US 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 being calculated.but the main component is the market capitalization of each company that makes it up. This is obtained by multiplying the value of the title on the corresponding stock exchange on the day by the total number of shares that are in circulation on the market.
Companies listed on the stock exchange are required to present a balance of its composition. This report must be disclosed every three or six months, as the case may be.
Reading a stock index also requires taking into account its evolution over time. Current indices always start with a fixed value based on stock prices on its start date, but not everyone follows this method. Therefore, it can be a source of misunderstanding.
If one index increases 500 points in one 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 assumed that, in percentage terms, the gains for the second were larger.
Between the main stock indices in the American Union There is the Dow Jones Industrial Average, better known as Dow Jonesmade up of 30 companies. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention 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 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 from the London Stock Exchange; he CAC 40 of 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 Indexwhich can be considered 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 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 assets 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; the IBC of Caracas, made up of 6 companies from Venezuela.
Similarly, there are 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 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.
