Adverse day for him ATXwhich opens the session on Monday, February 6 with slight drops in the 0.46%until the 3,364.05 points, after the start of the opening session. Compared to previous days, the ATX accumulate two consecutive dates of negative numbers.
In the last week, the ATX records a rise in 0.22%; On the other hand, in the last year it still maintains a decrease of 17%. He ATX a 0.64% below its maximum this year (3,385.65 points) and a 6.47% above its minimum valuation so far this year (3,159.71 points).
What is a stock index and what is it for?
a stock index It 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 various nations 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 business, in addition, 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 indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in shares and company shares. 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 make a comparison 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 see carefully how the shares of the companies tended to rise or fall together in price, so he created two indices: one that contained the 20 most important railway companies (since 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 come together based on their location, sectors, the size of the companies or also the type of assetFor 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).
How to read an index?
Each stock index has its own way of being measured, but the main factor is the market capitalization of each company 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 listed on the stock exchange are required to present a balance of its composition. Said report must be published every three or six months, as the case may be.
Reading a stock index also involves examining its evolution over time. Current indices always appear with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can lead to inaccuracies.
If one index adds 500 points in a day, while another only adds 20, it might appear that the former outperformed. But, 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 higher.
These are the main stock indices
Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jonesof which 30 companies are part., the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, it is necessary to mention the Nasdaq 100which links 100 of the largest non-financial firms.
On the other hand, the most prominent indices of Europe are the eurostoxx 50, which covers the 50 largest companies in the euro area. On the other hand, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he ACC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In the asian continentwe have the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which can be considered 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.
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 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; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP from Colombia; he IBC de Caracas, made up of 6 companies from Venezuela.
Similarly, there are other types of global stock market indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Similarly, there is MSCI World, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, made 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.
