This year the markets have registered a constant volatility. (Infobae)

Day without changes for the nikkei 225which ended the day on Monday, April 24 with a variation of the 0.03%until the 28,573.86 points. He nikkei 225 marked a maximum volume of 28,680.65 points and a minimum volume of 28,567.26 points. The trading range for the nikkei 225 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.4%.

If we consider the data of the last seven days, the nikkei 225 accumulated a decrease in 0.3%; Despite this, for a year it has still maintained a rise of 4.98%. He nikkei 225 a 0.3% below its maximum so far this year (28,658.83 points) and a 11.11% above its minimum price for the current year (25,716.86 points).

a stock index It is an indicator used to show the evolution of the value of a set of assetsso it collects data from various companies or sectors of a part of the market.

These indicators are used mainly by the stock markets of the countries and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same type of industry, 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 shares of an entity. If investors don’t have confidence, stock values ​​tend to fall.

They also work to measure the performance of an asset manager and allow investors to make comparisons between return 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

Currently there are various indices and They can associate based on their geography, sectors, company size or also the type of assetFor 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 way of calculating, but the main factor is the market capitalization of each firm that integrates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares that are in circulation in the market.

Publicly traded companies are required to present a balance of its composition. Said report must come to light every three or six months, as appropriate.

Reading a stock index also requires examining its changes over time. Current indices always open at a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can appear misleading.

If one index adds 500 points in one day, while another only adds 20, it might appear that the former performed better. But, if the former started the day at 30,000 points and the other at 300, it can be derived that, in percentage terms, the gains for the latter were larger.

Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jones, made up of 30 companies. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, one must not forget the Nasdaq 100which associates 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 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 continentthe main stock indices are the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, is seen as the most representative of 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 prestigious 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.

California18

Welcome to California18, your number one source for Breaking News from the World. We’re dedicated to giving you the very best of News.

Leave a Reply