The beginning of the day ascent for ATXwhich opens the day on Thursday, August 11 with small increases i 0.57%to the 3,078.85 points, after the start of the open session. Compared to previous days, the ATX two consecutive dates accumulate in positive figures.
As for the last seven days, the ATX records an increase in 1.48%; On the other hand, in year-on-year terms, there is always a fall 14.9%. The IS ATX one stands 24.12% below its maximum this year (4,057.59 points) and a 11.46% above its minimum valuation so far this year (2,762.36 points).
Stock market indices… what?
stock index it is an indicator that measures how the value of a certain set of assets developsfrom which it collects data from different companies or sectors 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 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, stock values 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. looked closely at how company stocks tended to go up or down together in price, so he created two indexes: one containing the top 20 railroad companies (since it was the industry’s more at the time), as well as 12 acts of other types of businesses.
Today in humanity there are various indices and they can be associated based on their geographic location, 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 a stock index measured?
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 title on the corresponding stock market by the total number of shares held by the investors.
Listed companies are required to present a balance of its composition. This report must be delivered every three to six months, as appropriate.
To read a stock index one must also analyze its changes over time. Current indices always start 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 confusing.
If one index rises 500 points in a day, while another index only gains 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 greater.
What 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. Also, the S&P 500, including 500 of the largest companies on the New York Stock Exchange. Finally, do not forget the 100 headswhich unites 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. On the other hand, 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, listed as the most prominent in China, consists of the most prominent 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 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 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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