Hang Seng loses 0.52% after the opening of operations

bad day for him Hang Seng (Hong Kong)which begins the day on Monday, May 23, with slight decreases in 0.52%until the 20,608.65 points, after opening. Analyzing this data with that of previous days, the Hang Seng (Hong Kong) reverses the price of the previous day, in which it obtained an increase of 2.54%, showing that it is unable to consolidate a trend recently.

If we consider the data of the last seven days, the Hang Seng (Hong Kong) recorded a rise in 3.3%; on the other hand, in year-on-year terms, it still accumulates a decrease in 25.65%. The Hang Seng (Hong Kong) stands a 17.45% below its maximum this year (24,965.55 points) and a 11.91% above its minimum valuation so far this year (18,415.08 points).

What is a stock index and what is it for?

a stock index is an indicator that shows how the price of a certain set of assets changesso you need to have data from different companies or sectors of a market fragment.

These indicators are mainly used by the stock markets of different countries of the world 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 industry, likewise, there are some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.

Stock market 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 lack confidence, 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.

This type of indicators began to be used at the end of the 19th century after journalist Charles H. Dow. carefully researched how company stocks tended to go up or down in price together, so he created two indices: one containing the top 20 railroad companies (it was the biggest industry at the time), as well as 12 actions of other types of businesses

Today there are various indices and they can be grouped according to their location, the sectors, the size of the companies or also the type of assetFor 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 to read an index?

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

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

Reading a stock index also implies noticing its changes over time. Current indices always start with a fixed value based on the prices of the securities on your start date, but not everyone follows this method. Therefore, it can be misleading.

If one index sees a 500-point increase in one day, while another only gains 20, it might appear that the first index outperformed. However, 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 more remarkable.

What are the main stock indices?

Between the major US stock indices There 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, do not forget the Nasdaq 100which brings together 100 of the largest non-financial firms.

On the other hand, the most outstanding indices of Europe are the Eurostoxx 50, which covers the 50 largest companies in the eurozone. On the other hand, the DAX 30, the main German index that contains the most prominent companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the ACC 40 of the Paris Stock Exchange; and the IBEX 35of 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 preponderant of China, made up of the most relevant companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about the Latin American regionyou have the CPIwhich contains at 35 most consolidated firms of the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.

Another is the Bovespa, made up of the 50 most important companies on the São Paulo stock exchange; the merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC of 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 the 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 planet.

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