bearish day for S&P/BVL Peru General Index TRwhich begins on Friday, September 23, to fall from 0.94%to the 19,474.31 points, after the start of the open session. Regarding the changes of this day in relation to the previous days, the S&P/BVL Peru General Index TR With this value he stops the positive streak he had in the previous five days.
As for the last seven days, the S&P/BVL Peru General Index TR an increase was recorded 0.59%so that it still maintains an increase in year-on-year terms 7.6%. The IS S&P/BVL Peru General Index TR one stands 24.05% below its maximum this year (25,642.58 points) and a 9.7% above its minimum price so far this year (17,752.60 points).
What is a stock index and what is it for?
stock index It is an indicator that shows how the price of a certain set of assets changesfor which it takes data from different companies or sectors of the market.
These indicators are mainly used by the stock markets of different countries around the world and each of which can be integrated with signatures with certain characteristics for example having a similar market capitalization or belonging to the same type of industry, also, 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. If investors lack confidence, share prices tend to fall.
They also work for the asset manager performance and enable 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. He looked closely 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 most more at the time), as well as 12 acts of other types. of affairs
Today there are various indexes and they can be linked based on geography, 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 a stock index measured?
Each stock index has its own way of calculation, 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.
To read a stock index its variations over time must also be taken into account. 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 adds 500 points in one day, and 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 concluded that, in percentage terms, the gains for the latter were more significant.
What are the main stock indices?
Between the major US stock indexes There is the Dow Jones Industrial Average, better known Dow Joneswhich includes 30 companies, the S&P 500, including 500 of the largest companies on the New York Stock Exchange. Finally, it is worth mentioning the 100 headsto 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, 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 continent of Asiathe IS Nikkei 225, comprising the 225 largest companies on the Tokyo Stock Exchange. The IS SSE Composite Index, which is listed as the most representative 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 powerful companies of the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of the 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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