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With gains, FTSE 100 gains ground during open on 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 FTSE 100 (UK)which begins the session on Friday, January 13 with slight increases in the 0.41%until the 7,825.79 points, after the start of the opening session. Regarding the changes of this day with respect to previous days, the FTSE 100 (UK) accumulates three successive dates in positive.

In the last seven days, the FTSE 100 (UK) mark a rise in 1.64%so that in year-on-year terms it still maintains an increase of 3.63%. and a 3.6% above its minimum rating for the current year (7,554.10 points).

Stock indices… What for?

a stock index It is an indicator that measures the evolution of the value of a certain set of assetsTherefore, it uses data from different companies or sectors of a part 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 type of business, 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. If investors are not confident, share prices tend to fall.

They also work to measure the performance of an asset manager and allow investors to make comparisons between return 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

Currently there are various indices and they can come together based on their geography, sectors, company size or even asset typeFor example, the US Nasdaq index is made up of the 100 largest companies mostly 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 it calculated and how to read them?

Each stock index has its own way of being measured, 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.

Publicly traded companies 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 implies paying attention to its changes over time. Current indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. So it can be confusing.

If one index increases 500 points in one day, while another only adds 20, it might appear that the former performed better. But, if the former started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the latter were larger.

The main stock indices

Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jonesof which 30 companies are part., the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, it is necessary to mention the Nasdaq 100which links 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 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 the asian continentthe main stock indices are the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, which is listed as the most representative of 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 influential firms on the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of 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.

Finally, 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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