Negative day for him Taiwan Weightedwhich ended on Friday, April 21 with drops in the 0.67%until the 15,602.99 points. He Taiwan Weighted marked the maximum number of 15,802.93 points and a minimum of 15,592.96 points. The trading range for the Taiwan Weighted between its highest and lowest point (maximum-minimum) during this day it stood at the 1.33%.
In the last week, the Taiwan Weighted accumulates a drop in 2.05%so that in year-on-year terms there is still a decrease in the 9.73%. He Taiwan Weighted a 2.26% below its maximum this year (15,963.55 points) and a 9.89% above its minimum valuation so far this year (14,199.13 points).
a stock index It is an indicator used to show the evolution of the value of a certain set of assets.so it takes data from different companies or sectors of a part 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 industry, likewise, 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 company shares. If investors are not confident, stock prices 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 see carefully how the shares of the companies tended to rise or fall together in price, so he created two indices: one that contained the 20 most important railway companies (since it was the most important industry at the time), as well as 12 shares of other types of businesses
Today there are various indices and they can partner based on their 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 calculation method, but the main component is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the security on the corresponding stock market by the total number of shares that are on the market.
Companies listed on the stock exchange are required to present a balance of its composition. Said report must be disclosed every three or six months, as appropriate.
Reading a stock index also implies analyzing its changes 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 lead to failures.
If one index adds 500 points in one day, while another only gets 20, it might look like the former outperformed. However, 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 main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Lastly comes 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 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, is seen as the most solid in 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 Latin Americayou have the CPIwhich contains the 35 most consolidated 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.
