Unchanged session for Nasdaq 100which ended on Thursday, August 18, with a change of the 0.26%to the 13,505.99 points. The IS Nasdaq 100 score a maximum of 13,553.28 points and the minimum number thereof 13,405.74 points. The trading range for Nasdaq 100 between the highest point and the lowest point (maximum-minimum) during this day stood at 1.09%.
If we consider last week’s data, the Nasdaq 100 accumulation increase i 1.61%; but in the last year it still keeps decreasing 9.1%. The IS Nasdaq 100 one stands 18.15% below its maximum this year (16,501.77 points) and a 21.37% above its minimum valuation for the current year (11,127.57 points).
What is a stock index and what is it for?
stock index it is an indicator used to show the evolution of the value of a certain set of assetstherefore it takes data from different companies or sectors of a part of the market.
These indicators are mainly used by the stock exchanges of different nations and firms with specific characteristics 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 company shares. In general, if investors lack confidence, stock values tend to fall.
They also work for the asset manager performance and allowing investors to compare 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 humanity there are various indices and they can be grouped by location, sector, 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 is it calculated and how to read them?
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 day’s value of the bond 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 appear every three to six months, as appropriate.
Reading a stock index is also about paying attention to its variations over time. New indices always open 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 an increase of 500 points in one day, while another index only adds 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 assumed that, in percentage terms, the gains for the latter were higher.
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, it seems the Nasdaq 100to associate 100 of the largest non-financial firms.
On the other hand, the most important indexes of Europe is the Eurostoxx 50, covering the 50 largest companies in the eurozone. In addition, the DAX 30, Germany’s main index of the largest outstanding 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 relevant companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Index Seung in Hong Kong and the KOSPI in South Korea.
Talking about it Latin Americathe IS IPCin which swelling Top 35 companies on 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.
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.
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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