Opening of the BIST 100 this June 23

Opening of the day with slight movements for the BIST 100which opens the session on Thursday June 23 with a variation of the 0.1%until the 2,576.92 points, after the start of the opening session. Compared to previous days, the BIST 100 reverses the price of the previous day, where it obtained a decrease of 1.44%, proving unable to establish a recently defined trend.

If we consider the data of the last seven days, the BIST 100 recorded a rise in 3.68%so that in the last year it still maintains an increase in 84.26%. The BIST 100 stands a 2.69% below its maximum this year (2,648.19 points) and a 39.19% above its minimum valuation so far this year (1,851.38 points).

What is a stock index and what is it for?

a stock index is an indicator that shows how the value of a set of assets changesfor which it uses data from various companies or sectors of a part of the market.

These indicators are mainly used by the stock exchanges of each country 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, 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 market 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 company shares. Generally, if investors lack confidence, share prices 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.

This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. carefully analyzed how company stocks tended to go up or down together in price, so he created two indices: one containing the top 20 railroad companies (since it was the biggest industry at the time), as well as 12 actions of other types of businesses

Currently in our economy there are various indices and they can be grouped according to their geography, sectors, company size or type of assetFor example, the US Nasdaq index is made up of the 100 largest companies largely 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).

How is it calculated and how to read them?

Each stock index has its own way of calculating, but the main component is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the action in the corresponding stock market by the total number of shares that are in the hands of investors.

Companies listed on the stock exchange are required to present a balance of its composition. This report must be published every three or six months, as the case may be.

Reading a stock index also requires paying attention to its changes over time. New indices always start with a fixed value based on the prices of the securities on your start date, but not everyone follows this method. Therefore, it can be misleading.

If one index sees a 500-point increase in one day, while another only gains 20, it might appear that the first index outperformed. However, if the former started the day at 30,000 points and the other at 300, it follows that, in percentage terms, the gains for the latter were more remarkable.

These are the main stock indices

Between the major US stock indices There is the Dow Jones Industrial Average, better known as dow jones, which is made up of 30 companies. Similarly, 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 outstanding indices of Europe are the Eurostoxx 50, which covers the 50 largest companies in the eurozone. In addition, the DAX 30, the main German index that contains the most prominent companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the ACC 40 of the Paris Stock Exchange; and the IBEX 35of 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 main one in China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about the Latin American regionyou have the CPIwhich contains at 35 most prestigious firms of the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.

Another is the Bovespa, made up of the 50 most important companies on the São Paulo stock exchange; the merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC of Caracas, made up of 6 companies from Venezuela.

Also, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.

Similarly, there is the MSCI World, which includes 1,600 companies from 23 developed countries; the 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 planet.

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