This year the markets have registered a constant volatility. (Infobae)
Day without changes for the MOEX Russia Index, which begins on Wednesday March 1 with a variation of 0.19%, up to 2,257.41 points, after the opening. Regarding days gone by, the MOEX Russia Index add three consecutive dates of positive numbers.
In relation to the profitability of the last seven days, the MOEX Russia Index accumulates a rise of 2.03%; although in the last year it still maintains a drop of 34.97%. He MOEX Russia Index it stands 0.66% below its maximum this year (2,272.37 points) and 4.8% above its minimum price so far this year (2,153.96 points).
A stock index is an indicator that shows how the price of a set of assets evolves, so it needs to have data from various companies or sectors of a part of the market.
These indicators are used mainly by the stock markets of different countries around the world and each one of them can be integrated by firms with different specificities, such as having a similar market capitalization or belonging to the same type of industry. There are also some indices that they 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 performance of investments in stocks and shares of a company. Generally, if investors are not confident, stock values tend to fall.
They also work to measure the performance of an asset manager and allow investors to analyze risk vs. return comparisons; measure the opportunities of a financial asset or create portfolios.
These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. To carefully investigate how the shares of companies tended to rise or fall together in price, he created two indices: one that contained the 20 largest railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses
Today in humanity there are various indices and they can be put together based on their location, sectors, the size of the companies or even the type of asset, for example, the US Nasdaq index is made up of the 100 largest companies in large measure related to technologies 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 method, but the main component is the market capitalization of each firm that integrates it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total number of shares that are in the market.
Firms that appear on the stock market are required to present a balance sheet of their composition. Said report must be notified every three or six months, as the case may be.
Reading a stock index also implies taking into account its changes over time. Current indices always start with a fixed value based on the prices of the securities on their start date, but not all follow this method. Therefore, it can lead to failures.
If one index gains 500 points in one day, while another only gets 20, it might appear that the former 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 more important.
Among the main stock market indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the Nasdaq 100, which unites 100 of the largest non-financial firms.
On the other hand, the most prominent indices in Europe are the Eurostoxx 50, which covers the 50 most important companies in the euro area. In addition, 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.
On the Asian continent, the main stock indices are the Nikkei 225, made up of the 225 most important companies on the Tokyo Stock Exchange. Likewise, the SSE Composite Index, which appears as the predominant one for China, made up of the most prominent companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
With regard to the Latin American region, there is the IPC, which contains the 35 most outstanding firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by tycoon Carlos Slim.
Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; the Merval from Argentina; 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 entire planet.
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