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RTSI opens higher this August 17th

RTSI opens higher this August 17th

A positive opening day for the RTSI (Russia)which starts the day on Wednesday, August 17 with small increases in 0.99%to the 1,153.32 points, after opening. Compared to previous sessions, the RTSI (Russia) chains of two consecutive sessions in positive figures.

If we consider the details of the last seven days, the RTSI (Russia) accumulation increase i 3.12%; although it is for a year to maintain still a decrease in 27.73%. The IS RTSI (Russia) one stands 28.93% less than the maximum so far this year (1,622.75 points) and a 55.24% above its minimum price for the current year (742.91 points).

Stock market indices… Why?

stock index it is an indicator that measures the evolution of the value of a set of assetsfrom which it uses data from different companies or sectors of the market.

These indicators are mainly used by the stock markets of different nations and businesses with specific requirements can integrate each for example having a similar market capitalization or belonging to the same type of industry, in addition, there are some indexes that only take into account a handful of shares to determine their value or others that consider hundreds of shares.

Stock market indices act as an 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 entity shares. In general, if investors lack confidence, share prices tend to fall.

They also work for the asset manager performance and allowing investors to compare profitability and risk; the opportunities of measuring a financial asset or creating portfolios.

This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. to carefully analyze how the stocks of the companies went up or down in price together, so he created two indexes: one containing the 20 largest railway companies (since it was the largest industry at the time), as well as 12 acts of other types of businesses.

Currently in our economy there are various indices and they can be grouped by geography, sectors, company size or asset typeFor example, the US Nasdaq index consists of the 100 largest companies mainly 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 to read an index?

Each stock index has its own way of measuring it, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the day’s value of the title on the corresponding stock market by the total number of shares in circulation in the market.

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

To read a stock index one must also examine its variations over time. New indices are constantly appearing with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.

If one index rises 500 points in a day, while another index only gains 20, it may appear that the first index performed better. But, if the first day started at 30,000 points and the next day at 300, it can be assumed, in percentage terms, that the gains for the latter were greater.

Major stock indices

Between the major US stock indexes There is the Dow Jones Industrial Average, better known Dow Jones, which consists of 30 companies. Similarly, the S&P 500, including 500 of the largest companies on the New York Stock Exchange. Finally, do not forget the 100 headswhich brings together 100 of the largest non-financial firms.

On the other hand, the most significant indexes of Europe is the Eurostoxx 50, covering the 50 largest companies in the eurozone. On the other hand, the DAX 30, the main German index containing the most prominent companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35of the Spanish stock market.

I Asiathe IS Nikkei 225, comprising the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which can be considered the main one in China, consists of the most important companies on the Shanghai Stock Exchange. The same role played by Hang Index Seung in Hong Kong and the KOSPI in South Korea.

Talking about it Latin Americathe IS IPCin which swelling 35 most influential companies 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, composed of the 50 most important companies on the São Paulo stock exchange; the Merval from Argentina; the IPSA From Chile; the COLCAP MSCI from Colombia; the IBC de Caracas, made up of 6 companies from Venezuela.

Finally, 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.

Likewise, the MSCI World, including 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 World 100made up of the 100 most powerful multinationals in the world.

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