News

ATX index this December 12: loses ground at the start of operations

This year the markets have registered a constant volatility.  (Infobae)
This year the markets have registered a constant volatility. (Infobae)

bearish day for ATXwhich begins the session on Monday, December 12 with slight decreases in the 0.4%until the 3,153.84 points, after the start of the opening session. Comparing this data with that of past days, the ATX reverses the result of the previous day, in which it ended with an increase of 0.03%, proving incapable of consolidating a stable trend recently.

In the last week, the ATX records a decrease in 1.8%so that for a year it still maintains a decrease in 15.48%. The ATX a 22.27% below its maximum this year (4,057.59 points) and a 19.13% above its minimum price so far this year (2,647.43 points).

What is a stock index and what is it for?

a stock index It is an indicator that measures how the price of a given set of assets evolves.so it collects data from different companies or sectors of a fragment of the market.

These indicators are used mainly by the stock markets of various countries and each of them can be integrated by signatures with specific characteristics such as having a similar market capitalization or belonging to the same type of business, there are also some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.

Stock indices serve as indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the performance of stock investments and shares of a company. Generally, if investors are not confident, stock costs tend to fall.

They also work to measure the performance of an asset manager and allow investors to have comparisons between profitability and risk; measure the opportunities of a financial asset or create portfolios.

These types of indicators began to be used at the end of the 19th century after the journalist Charles H. Dow. carefully observed how the shares of the companies tended to rise or fall together in price, so he created two indices: one that contained the 20 most important railway companies (since it was the most important industry at the time), as well as 12 shares of other types of businesses

Today there are various indices and they can partner based on their geography, sectors, company size or asset classFor example, the US Nasdaq index is made up of the 100 largest largely technology-related companies 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 calculating, but the main factor is the market capitalization of each firm that integrates it. This is obtained by multiplying the value of the day of the share in the corresponding stock market by the total number of shares that are in the hands of investors.

Firms listed on the stock market are required to present a balance of its composition. Said report must be made public every three or six months, as appropriate.

Reading a stock index also implies taking into account its evolution over time. New indices always appear with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.

If one index boosts by 500 points in a day, while another only gets 20, it might appear that the former performed better. However, if the first started the day at 30,000 points and the other at 300, it can be concluded that, in percentage terms, the gains for the second were more important.

The main stock indices

Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Also, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Lastly comes the Nasdaq 100which associates 100 of the largest non-financial firms.

On the other hand, the most important indices of Europe are the eurostoxx 50, which covers the 50 largest companies in the euro area. Also, 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 ACC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.

In the asian continentwe have the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, is seen as the most solid in China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about the latin american regionyou have the CPIwhich contains the 35 most outstanding firms of the Mexican Stock Exchange (BMV). At least a third of them are owned by tycoon Carlos Slim.

Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo Stock Exchange; the Merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC de Caracas, made up of 6 companies from Venezuela.

Similarly, 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.

Similarly, there is MSCI World, which includes 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 Global 100made up of the 100 most powerful multinational firms on the entire planet.

Keep reading:

More news

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button