This year the markets have registered a constant volatility. (Infobae)
Opening session on the rise for the RTSI (Russia), which begins the session on Tuesday, March 21 with slight increases of 0.92%, up to 988.80 points, after the start of the opening session. In relation to previous days, the RTSI (Russia) Add three consecutive days in green.
In reference to the profitability of the last week, the RTSI (Russia) accumulates a rise of 3.23%; although in interannual terms it still accumulates a decrease of 18.11%. He RTSI (Russia) it stands 3.48% below its maximum so far this year (1,024.44 points) and 9.05% above its minimum price for the current year (906.71 points).
A stock index is an indicator that is used to know the evolution of the value of a certain set of assets, for which it uses data from different companies or sectors of a part of the market.
These indicators are used mainly by the stock markets of the countries and each one of them can be made up of firms with specific characteristics, such as having a similar market capitalization or belonging to the same type of activity; likewise, there are some indices that only consider a handful of shares to determine its 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 prices will tend to fall.
Likewise, they work to measure the performance of an asset manager and allow investors to have comparisons between profitability and risk; 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
Currently in our economy there are various indices and they can be associated 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 that are largely 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 company that is part of it. This is obtained by multiplying the daily value of the security in the corresponding stock market by the total number of shares that are in circulation in the market.
Listed companies are required to present a balance sheet of their composition. Said report must be made public every three or six months, as the case may be.
Reading a stock index also requires observing its evolution over time. Today’s indices always open at a fixed value based on the stock prices on their start date, but not all follow this method. Therefore, it can appear misleading.
If one index sees an increase of 500 points in one day, while another only adds 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, you can see that, in percentage terms, the gains for the latter were considerable.
Among the main stock market indices in the United States is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Similarly, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, comes the Nasdaq 100, which brings together 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. 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; the CAC 40 of the Paris Stock Exchange; and the IBEX 35, of the Spanish stock market.
On the Asian continent, we have the Nikkei 225, made up of the 225 most important companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, which is seen as the most solid in China, made up of the most relevant 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 Latin America, there is the IPC, which contains the 35 most powerful firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the patrimony of 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.
There are also 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.