Start of the day on the rise for the MOEX Russia Indexwhich begins the session on Friday, March 17 with slight increases in 0.87%until the 2,277.83 points, after the start of the opening session. Analyzing this data with that of previous days, the MOEX Russia Index ends two days of losing streak.
If we consider the data of the last week, the MOEX Russia Index marks an ascent from 0.07% although, on the contrary, for a year there has still been a drop in the 32.87%. He MOEX Russia Index a 0.77% below its maximum this year (2,295.60 points) and a 5.75% above its minimum price so far this year (2,153.96 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 multiple 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 signatures with different specificities such as having a similar market capitalization or belonging to the same type of business, in addition, 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 an entity. 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
Currently in our economy there are various indices and they can be grouped based on their geographic location, 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 way of being measured, but the main component is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the title on the corresponding stock market by the total number of shares that are in the hands of investors.
Companies that are listed on the stock market are required to present a balance of its composition. Said report must be notified every three or six months, as appropriate.
Reading a stock index also requires noticing its changes over time. New indices always appear with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can appear misleading.
If one index boosts by 500 points in one day, while another only adds 20, it might appear that the former outperformed. However, if the first started the day at 30,000 points and the other at 300, it can be assumed that, in percentage terms, the gains for the second were more important.
Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies. Likewise, the S&P 500, which comprises 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 important 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 Asiawe 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 main one in China, made up of the most prominent 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 powerful firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by 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.
