Negative day for RTSI (Russia)which closed on Monday, December 12 with slight drops in the 0.93%until the 1,088.86 points. The RTSI (Russia) reached a maximum volume of 1,099.44 points and a minimum of 1,083.07 points. The trading range for the RTSI (Russia) between its highest and lowest point (maximum-minimum) during this day it stood at the 1.49%.
If we consider the data of the last seven days, the RTSI (Russia) scores a decrease of 2.32%so that in year-on-year terms there is still a decrease in the 39.59%. The RTSI (Russia) a 32.9% below its maximum so far this year (1,622.75 points) and a 46.57% above its minimum valuation for the current year (742.91 points).
Stock indices… What for?
a stock index is an indicator that shows how the value of a given set of assets changesfor which it collects data from different 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 companies with specific characteristics such as having a similar market capitalization or belonging to the same type of industry, in addition, there are 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 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 allow investors to make 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. To carefully analyze 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 there are various indices and they can associate based on their geography, sectors, company size 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 to read an index?
Each stock index has its own calculation method, but the main component is the market capitalization of each firm that integrates it. This is obtained by multiplying the value of the security on the corresponding stock market by the total number of shares that are on the market.
Publicly traded firms are required to present a balance of its composition. Said report must be made public every three or six months, as the case may be.
Reading a stock index also involves examining its variations over time. New indices always appear with a fixed value based on stock prices on their start date, but not everyone follows this method. Therefore, it can lead to inaccuracies.
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. However, 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 considerable.
These are the main stock indices
Between the main stock indices in the American Union is the Dow Jones Industrial Average, better known as Dow Joneswhich is made 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 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. 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 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. There is also the SSE Composite Index, which can be considered the main one in China, made up of the most prominent companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.
Talking about Latin Americayou 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.