bad day for him Taiwan Weightedwhich ended on Thursday, June 27 with slight declines in 0.35%until the 22,905.98 points. He Taiwan Weighted reached a maximum of 22,922.56 points and a minimum of 22,765.16 points. The trading range for the Taiwan Weighted between its highest and lowest point (maximum-minimum) during this day it stood at the 0.69%.
If we consider the data from the last week, the Taiwan Weighted notes a drop in 2.14%%; although in the last year he still accumulates a promotion of 32.88%. He Taiwan Weighted is located a 2.14% below its maximum of this year (23,406.10 points) and a 33.47% above its minimum valuation so far this year (17,161.79 points).
A stock index is an indicator that measures how the price of a given set of assets evolvesso it takes data from different companies or sectors of a part of the market.
These indicators are mainly used by the countries’ stock exchanges 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. Also, there are some indexes that only consider a handful of stocks to determine their value or others that consider hundreds of stocks.
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 do not have confidence, stock values would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow for comparisons between profitability and risk; to measure the opportunities of a financial asset or to create portfolios.
This type of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. carefully investigated 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
Nowadays there are various indices and They can join together 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 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 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 on the market.
Firms that appear on the stock exchange are required to present a balance of its composition. Said report must be disclosed every three or six months, as the case may be.
Reading a stock index also requires examining its changes over time. Current indices always start with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can lead to inaccuracies.
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 assumed that, in percentage terms, the gains for the second were more significant.
Between the main stock indices in the American Union There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Also, the S&P 500which includes 500 of the largest companies on the New York Stock Exchange. Finally, there is the Nasdaq 100which associates 100 of the largest non-financial firms.
On the other hand, the most notable 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 most prominent 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, which appears as the most representative of China, made up of the most relevant 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 Latin Americayou 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 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; the IBC of Caracas, made up of 6 companies from Venezuela.
Likewise, 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 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.
