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BIST 100: Turkey’s main index closes in positive territory this December 13

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

Pickup day for BIST 100which ended the session on Tuesday, December 13 with increases of 1.22%until the 5,256.46 points. The BIST 100 marked a maximum volume of 5,299.33 points and the minimum number of 5,179.82 points. The trading range for the BIST 100 between its highest and lowest point (maximum-minimum) during this day it stood at the 2.26%.

Regarding the last week, the BIST 100 accumulates an increase of 5.13%so that in year-on-year terms there is still an increase of 143.61%. and a 183.92% above its minimum price for the current year (1,851.38 points).

Stock indices… What for?

a stock index It is an indicator that measures the evolution of the price of a certain set of assets.for which you need to have data from various companies or sectors of a fragment of the market.

These indicators are used mainly by the stock markets of the countries and each of them can be integrated by firms with specific requirements such as having a similar market capitalization or belonging to the same type of business, likewise, there are some indices that only take into account 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 investments in shares and company shares. Generally, if investors are not confident, stock values ​​tend to fall.

They also work to measure the performance of an asset manager and they allow investors to be able to compare 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. To carefully investigate how the shares of companies tended to rise or fall together in price, he created two indices: one that contained the 20 largest railway companies (as it was the most important industry at the time), as well as 12 shares of other types of businesses

Today in humanity there are various indices and They can join a union based on their geography, sectors, the size of the companies or also the type of assetFor 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 component is the market capitalization of each company that integrates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares that are in circulation in the market.

Publicly traded companies are required to present a balance of its composition. Said report must be disclosed every three or six months, as the case may be.

Reading a stock index also implies paying attention to its variations over time. New indices always start with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can appear misleading.

If one index grows 500 points in one day, while another only adds 20, it might appear that the former outperformed. But, 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 higher.

What are the major stock indices?

Between the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jonesmade up of 30 companies, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, one must not forget the Nasdaq 100which unites 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. On the other hand, the DAX 30, the main German index containing the most outstanding 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 Asiawe have the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, which can be considered the preponderant of China, made up of the most prominent 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 Latin Americayou have the CPIwhich contains the 35 most powerful firms on 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.

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