Bad day for FTSE MIB IDXwhich opens on Friday, August 19, with a small drop-in 0.57%to the 22,855.37 points, after the start of the open session. Analyzing this data with that of the previous days, the FTSE MIB IDX it reverses the direction of the previous result, in which it ended with an increase of 1.04%, indicating that it is not able to establish a defined trend recently.
Referring to the profitability of the last seven days, the FTSE MIB IDX drop in record 0.01%and that’s why the last year accumulates still decrease in 12.3%. The IS FTSE MIB IDX one stands 18.85% below its maximum this year (28,162.67 points) and a 11.19% above its minimum price so far this year (20,554.33 points).
Stock market indices… what?
stock index It is an indicator that shows how the price of a certain set of assets changestherefore it collects data from different companies or sectors of the market.
These indicators are mainly used by the stock exchanges of different countries and businesses with specific requirements can integrate each such as having a similar market capitalization or belonging to the same industry, likewise, there are some indexes that consider only 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, stock values tend to fall.
They also work for the asset manager performance and allow comparisons between 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. He looked carefully at how company stocks tended to go up or down together in price, so he created two indexes: one of the top 20 railroad companies (since it was the industry’s largest more at the time), as well as 12 acts of other types. of affairs
Today there are various indexes and they can also 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 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 activity on the corresponding stock market by the total number of shares held by the investors.
Companies listed on the stock exchange are required to present a balance of its composition. That report must be made public every three or six months, as the case may be.
To read a stock index one must also pay attention to its evolution over time. New indexes are always opened with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can lead to failures.
If one index rises 500 points in a day, and another index only adds 20, it may appear that the first index has outperformed. But, if the first day started at 30,000 points and the next day at 300, it can be concluded that, in percentage terms, the gains were significant for the latter.
These are the main 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 Nasdaq 100which 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. In addition, 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 continent of Asiathe IS Nikkei 225, comprising the 225 largest companies on the Tokyo Stock Exchange. The IS SSE Composite Index, which can be considered the most prominent 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 consolidated 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 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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