Opening session on the rise for the 20PSIwhich opens the session on Thursday, March 16 with slight increases in 0.18%until the 5,823.58 points, after the start of the opening session. Comparing this data with that of past days, the 20PSI reverses the result of the previous day, in which it marked a decrease of 1.4%, without being able to establish a clear trend in recent days.
Taking into account the last week, the 20PSI scores a decrease of 3.85%; Despite this, in year-on-year terms, it still accumulates a rise in 0.36%. He 20PSI a 4.04% below its maximum so far this year (6,069.06 points) and a 0.18% above its minimum valuation for the current year (5,812.87 points).
a stock index It is an indicator used to show the evolution of the price of a certain set of assets.so it takes 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 requirements such as having a similar market capitalization or belonging to the same type of industry, likewise, there are some indices that only consider 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 a company. If investors do not have confidence, the costs of shares will 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 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 in humanity there are various indices and They can be put together based on their geographic location, sectors, company size 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).
Each stock index has its own way of being measured, but the main component is the market capitalization of each firm that integrates 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.
Publicly traded firms are required to present a balance of its composition. Said report must be delivered every three or six months, as the case may be.
Reading a stock index also implies observing its changes over time. Current indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can lead to failures.
If one index adds 500 points in one day, while another only adds 20, it might appear that the former outperformed. But, if the first started the day at 30,000 points and the other at 300, it can be deduced that, in percentage terms, the gains for the second were more remarkable.
Between the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, which is 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 links 100 of the largest non-financial firms.
On the other hand, the most important indices of Europe are the eurostoxx 50, which covers the 50 largest companies in the euro area. Also, 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 Asiawe have the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, which is listed as the largest in China, made up of the most prominent 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 the latin american regionyou have the CPIwhich contains the 35 most outstanding firms of 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.
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.
