Login without big changes for the ISTN (Russia)which begins the session on Wednesday, April 6 with a variation of the 0.59%until the 998.87 pointsafter opening. Compared to previous days, the ISTN (Russia) add two sessions in a row in the red.
In relation to the last seven days, the ISTN (Russia) marks an increase in 5.23%; On the contrary, for a year it still maintains a decrease in 32.9%. The ISTN (Russia) stands a 38.45% below its maximum so far this year (1,622.75 points) and a 34.45% above its minimum valuation for the current year (742.91 points).
What is a stock index and what is it for?
a stock index is an indicator that measures the evolution of the price of a certain set of assetsfor which you need to have data from different companies or sectors of a part of the market.
These indicators are mainly used by the stock exchanges 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 industry, also, 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 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 shares of an entity. Generally, if investors lack confidence, equity costs will tend to fall.
They also work to measure the performance of an asset manager and they allow investors to make a comparison 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 analyzed how company stocks tended to go up or down together in price, so he created two indices: one containing the top 20 railroad companies (since it was the biggest industry at the time), as well as 12 actions of other types of businesses
Currently there are various indices and can be aggregated based on geographic location, 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 measuredbut 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. Said report must come to light every three or six months, as the case may be.
Reading a stock index also implies taking into account its changes over time. Current indices always open with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it may seem misleading.
If one index grows 500 points in a day, while another gains only 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, it can be deduced that, in percentage terms, the gains for the latter were higher.
These 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 500comprising 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 important indices of Europe are the Eurostoxx 50covering the 50 largest companies in the eurozone. On the other hand, the DAX 30main German index containing the strongest 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.
On Asiawe have the Nikkei 225composed of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Indexwhich can be considered the preponderant of China, made up of the most relevant 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 IPCwhich contains at 35 most powerful firms of the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of tycoon Carlos Slim.
Another is the Bovespamade up of the 50 most important companies on the São Paulo stock exchange; the merval from Argentina; the ITSELF From Chile; the IGBC of Bogota; 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 Worldwhich includes 1,600 companies from 23 developed countries; the MSCI Emerging Marketsmade 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.