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PSI 20 moves in positive territory at the start of operations this January 13

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

Positive opening of the day for the 20PSIwhich begins the session on Friday, January 13 with slight increases in the 0.47%until the 6,070.20 points, after the start of the opening session. If we compare the figure with past days, the 20PSI accumulate 10 successive dates on the rise.

In reference to the profitability of the last seven days, the 20PSI records an increase of 2.72%so that in the last year it still maintains a rise in 8.73%. and a 4.14% above its minimum price so far this year (5,829.15 points).

Stock indices… What for?

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

These indicators are used mainly by the stock markets of various nations and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same industry, 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. If investors do not have confidence, the costs of shares will tend to fall.

They also work to measure the performance of an asset manager and allow a comparison 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

Currently there are various indices and they can unionize based on their geography, sectors, company size or even 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 to read an index?

Each stock index has its own way of calculating, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the share on the corresponding stock market by the total number of shares that are on the market.

Companies listed on the stock exchange are required to present a balance of its composition. Said report must be notified every three or six months, as appropriate.

Reading a stock index also involves noticing its changes over time. New indices always start with a fixed value based on stock prices on their start date, but not everyone follows this method. So it can be confusing.

If one index sees an increase of 500 points in one day, while another only gets 20, it might appear that the former performed better. But, if the first started the day at 30,000 points and the other at 300, it can be derived that, in percentage terms, the gains for the second were more important.

The main stock indices

Between the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies. Also, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, the Nasdaq 100which brings together 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. He too 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 ACC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.

In the asian continentthe main stock indices are the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. There is also the SSE Composite Index, is seen as the most representative of 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 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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