bearish day for Taiwan Weightedwhich begins the day on Tuesday, June 25, with notable falls in 0.9%until the 22,609.39 points, after opening. Regarding previous days, the Taiwan Weighted chain three consecutive sessions falling.
In the last week, the Taiwan Weighted accumulates a decrease in 0.65%%; Despite this, for a year now it has still maintained an increase in 33.35%. He Taiwan Weighted is located a 3.4% below its maximum so far this year (23,406.10 points) and a 31.74% above its minimum valuation of the current year (17,161.79 points).
A stock index It is an indicator used to show the evolution of the value of a set of assetsfor which it takes data from different companies or sectors of a fragment of the market.
These indicators are mainly used by the countries’ stock exchanges 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, there are also 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 a company. Generally, if investors lack confidence, stock values 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 the journalist Charles H. Dow. observed carefully 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
Today in our economy there are various indices and They can be grouped based on geography, 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 way of calculating, 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 security in the corresponding stock market by the total shares that are in the hands of the investors.
Companies listed on the stock exchange are required to present a balance of its composition. Said report must be disclosed every three or six months, as appropriate.
Reading a stock index also requires examining its changes over time. New indices always open with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can lead to failures.
If one index adds 500 points in a day, while another only achieves 20, it could appear that the first had a better return. 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 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, we must not forget the Nasdaq 100which associates 100 of the largest non-financial firms.
On the other hand, the most important indices of Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. Furthermore, the DAX 30, the main German index that contains the strongest 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 Asiawe have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, is seen as the most representative of China, made up of the most prominent companies on the Shanghai Stock Exchange. Likewise, it is worth mentioning 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 outstanding firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of magnate 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 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 entire planet.
