bad day for him OMXS 30, which ended the session on Thursday June 30 with large drops of 1.87%, to 1,872.68 points. The OMXS 30 it scored a maximum volume of 1,887.01 points and the minimum figure of 1,858.12 points. The trading range for OMXS 30 between its highest and lowest point (maximum-minimum) during this day stood at 1.53%.
In reference to the profitability of the last week, the OMXS 30 records a decrease of 1.22%, so that for a year it still accumulates a decrease of 17.64%. The OMXS 30 it is 23.76% below its maximum for this year (2,456.17 points) and 0.38% above its minimum price for the current year (1,865.54 points).
Stock market indices… for what?
A stock index is an indicator that measures how the value of a certain set of assets evolves, so it takes data from different companies or sectors of a fragment of the market.
These indicators are mainly used by the stock markets of different countries of the world and each one of them can be integrated by companies with certain characteristics, such as having a similar market capitalization or belonging to the same type of industry, likewise, there are some indices that only take into account a handful of shares to determine their value or others that consider hundreds of shares.
Stock indices serve as an indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the return on investment in a company’s stocks and shares. Generally, if investors lack confidence, stock prices will tend to fall.
They also work 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. carefully researched how company stocks tended to go up or down in price together, so he created two indices: one containing the top 20 railroad companies (it was the biggest industry at the time), as well as 12 actions of other types of businesses
There are currently various indices and they can be grouped based on their geography, sectors, company size or even the type of asset, for example, the Nasdaq US 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) .
How is it calculated and how to read them?
Each stock index has its own way of being measured, but the main component is the market capitalization of each firm that is part of it. This is obtained by multiplying the value of the day of the bond in the corresponding stock market by the total number of shares that are in circulation in the market.
Companies listed on the stock exchange are required to present a balance of their composition. Said report must be disclosed every three or six months, as appropriate.
Reading a stock index also implies taking into account its changes over time. Current indices always start with a fixed value based on share prices on their start date, but not all follow this method. Therefore, it may seem misleading.
If one index sees an increase of 500 points in one day, while another only adds 20, it might appear that the first index outperformed. However, if the former started the day at 30,000 points and the other at 300, it can be deduced that, in percentage terms, the gains for the latter were considerable.
What are the main stock indices?
Among the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Lastly comes the Nasdaq 100, which groups 100 of the largest non-financial firms.
On the other hand, the most important indices in Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. Also, the DAX 30, the main German index that contains the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 of the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35, of the Spanish stock market.
In Asia, we have the Nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, it is seen as the most notable in China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Regarding the Latin American region, there is the IPC, which contains the 35 most influential firms of 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 São Paulo stock exchange; the Argentine Merval; the IPSA of Chile; the MSCI COLCAP of Colombia; the IBC of Caracas, made up of 6 companies from Venezuela.
Similarly, there are other types of global stock indices such as the MSCI Latin America, which includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Similarly, there is the MSCI World, which includes 1,600 companies from 23 developed countries; the MSCI Emerging Markets, made up of more than 800 companies from developing countries; and the S&P Global 100, made up of the 100 most powerful multinational firms on the planet.