Bullish opening for the Taiwan Weightedwhich begins the session on Friday, June 28 with slight increases in the 0.13%until the 22,936 pointsafter the opening. In relation to previous days, the Taiwan Weighted It changes the direction of the previous data, which ended with a decrease of 0.48%, without being able to establish a defined trend in recent dates.
In relation to the profitability of the last seven days, the Taiwan Weighted accumulates a decrease of 1.36%%; On the other hand, in interannual terms, it still maintains an increase in 32.31%. He Taiwan Weighted is situated a 2.01% below its maximum so far this year (23,406.10 points) and a 33.65% above its lowest price for the current year (17,161.79 points).
A stock market index It is an indicator that shows how the price of a certain set of assets changes.so it takes data from various 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 companies with specific characteristics such as having a similar market capitalization or belonging to the same type of industry. In addition, there are some indexes 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 an entity. Generally, if investors lack confidence, stock prices tend to fall.
They also 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. 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 associated based on their geographical location, sectors, company size or even the type of assetFor example, the American 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 calculation methodbut the main component is the market capitalization of each company that makes up the bond. 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.
Firms that appear on the stock market are required to present a balance of its composition. This report must be submitted every three or six months, as appropriate.
Reading a stock index also involves examining its changes over time. Current indexes always start 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 misleading.
If one index grows by 500 points in a day, while another only gains 20, it might seem that the former has performed better. However, if the former started the day at 30,000 points and the other at 300, it can be seen that, in percentage terms, the gains for the latter were greater.
Between the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies. Likewise, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, there appears Nasdaq 100which brings together 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. On the other hand, the DAX 30, the main German index that contains the most prominent 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 the asian continentwe have the Nikkei 225made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Indexis seen as the most notable in 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 consolidated 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; the IPSA from Chile; the 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 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.
