Climbing day for the nikkei 225which closed on Monday, March 27 with slight increases in 0.42%until the 27,501.06 points. He nikkei 225 scored a maximum of 27,543.48 points and the minimum number of 27,359.72 points. The trading range for the nikkei 225 between its highest and lowest point (maximum-minimum) during this day it stood at the 0.67%.
Taking into account the last seven days, the nikkei 225 accumulate a promotion 0.61%so that in the last year it still accumulates a rise in 1.02%. He nikkei 225 a 3.92% below its maximum so far this year (28,623.15 points) and a 6.94% above its minimum valuation for the current year (25,716.86 points).
a stock index It is an indicator that shows how the value of a set of assets changesfor which it takes data from several companies or sectors of a fragment of the market.
These indicators are used mainly by the stock markets of different countries of the world 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, 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 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 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 investigate 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 in humanity there are various indices and they can be grouped based on their geography, sectors, company size or even asset typeFor 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 calculation method, but the main factor is the market capitalization of each company 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.
The companies that are in the bag are obliged to present a balance of its composition. Said report must be notified every three or six months, as appropriate.
Reading a stock index also involves observing its variations over time. Current indices always start with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.
If one index sees an increase of 500 points in one day, while another only gets 20, it might appear that the former performed better. However, if the first started the day at 30,000 points and the other at 300, it can be concluded that, in percentage terms, the gains for the second were more remarkable.
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 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 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. There is also the SSE Composite Index, which can be considered the most representative of 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 influential 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.
Also, 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.
