Harmful session for S&P/BVL Peru General Index TRwhich opens the session on Friday, August 19, with small reductions in 0.31%to the 19,854.48 points, after the start of the open session. If we compare the figure with previous dates, the S&P/BVL Peru General Index TR chains of two consecutive sessions of negative numbers.
If we consider the details of the last seven days, the S&P/BVL Peru General Index TR marks decrease i 2.54%; Despite this, in the past year it is still rising i 24.74%. The IS S&P/BVL Peru General Index TR one stands 22.57% below its maximum this year (25,642.58 points) and a 11.84% above its minimum price for the current year (17,752.60 points).
Stock market indices… what?
stock index it is an indicator that shows how the value of a certain set of assets changestherefore it uses data from different companies or sectors of a part of the market.
These indicators are used mainly by the stock exchanges of countries and each of which can be integrated with signatures with certain characteristics such as having a similar stock market capitalization or belonging to the same type of business, similarly, 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 company shares. If investors lack confidence, stock values tend to fall.
They also work for the asset manager performance and allow investors to make comparisons between return 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. he carefully researched how company stocks tended to go up or down in price together, so he created two indexes: one containing the top 20 railroad companies (the largest industry at the time), as well as 12 acts of other types of businesses.
Today in our economy there are various indices and it can be aggregated based on geographic location, sectors, company size, or even 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 is it calculated and how to read them?
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 share in 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. This report must be published every three to six months, as appropriate.
To read a stock index is to pay attention to its evolution over time. New indices always start with a fixed value based on stock prices 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 index gains only 20, it may appear that the first index has outperformed. However, if the first day started at 30,000 points and the next day at 300, it can be determined, 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 Jonesmade up of 30 companies., the S&P 500, including 500 of the largest companies on the New York Stock Exchange. Finally, do not forget the Nasdaq 100to associate 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. In addition, the DAX 30, the main German index containing the strongest 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. The IS SSE Composite Index, which can be considered the strongest in China, consists of the most prominent 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 American regionthe 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.
Likewise, 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.
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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