bad day for him ATXwhich opens the session on Tuesday, May 2 with slight drops in the 0.4%until the 3,245.61 points, after the start of the opening session. In relation to past days, the ATX puts an end to three sessions of positive trend.
Taking into account the last week, the ATX accumulated a decrease in 0.42%; but for a year it still maintains an increase in 2.99%. He ATX a 8.75% below its maximum this year (3,557.01 points) and a 7.31% above its minimum price so far this year (3,024.58 points).
a stock index It is an indicator that shows how the price of a certain set of assets changesso it takes data from various companies or sectors of a fragment of the market.
These indicators are used mainly by the stock markets of the countries and each 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 indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the performance of stock investments and company shares. If investors are not confident, share prices will tend to fall.
They also work to measure the performance of an asset manager and they allow investors to be able to compare 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 analyze 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 there are various indices and they can partner based on their geography, sectors, company size or even asset typeFor example, the US Nasdaq index is made up of the 100 largest largely technology-related companies 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 factor is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the share in the corresponding stock market by the total number of shares that are in the hands of investors.
Firms listed on the stock market are required to present a balance of its composition. Said report must come to light every three or six months, as the case may be.
Reading a stock index also involves paying attention to its changes over time. Current indices always open at a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be misleading.
If one index grows 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, it can be seen that, in percentage terms, the gains for the latter were more important.
Between the main stock 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 includes 500 of the largest companies on the New York Stock Exchange. Finally, the Nasdaq 100which brings together 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. He too DAX 30, the main German index containing the most outstanding 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. There is also the SSE Composite Index, is seen as the most solid in China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Talking about Latin Americayou have the CPIwhich contains the 35 most powerful firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital 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.
Finally, 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.
