KOSPI Opening: The South Korean market rose on January 6 this year
opened well for him KOSPIFriday, January 6, begins with a slight rise in the sun 0.38%until 2,264.65 points, after opening. Compared to previous days KOSPI chain two consecutive days with a positive value.
Considering the last seven days, KOSPI determines the fall 0.69%so it still maintains its decline from a year ago 25.02%. and a 2.07% higher than the lowest price of the current year (2,218.68 points).
Stock Indices… Why?
stock index This is an indicator that measures the evolution of the price of a certain set of assets.therefore, it collects data from several companies or sectors of a market segment.
These indicators are mainly used by the stock markets of different countries and each of them can be combined by companies with different characteristics There are some indexes that look at only a few stocks to determine their value, or others that look at hundreds of stocks, as if they belong to a similar market capitalization or the same industry type.
Stock indexes serve index of confidence in the stock market, business confidence, health of the national and global economy, indicators of stock investments and company shares. If investors are unsure, stock prices will fall.
They also work to measure activity of the asset manager and allow comparison of return and risk; measure the potential of a financial asset or create a portfolio.
These types of indicators began to be used after the end of the 19th century journalist Charles H. Dow. In order to carefully analyze how companies’ stocks tend to rise or fall in price, he created two indexes: one with 20 major railroad companies (being the most important industry at the time) as well as 12 stocks of other companies. types of business
Currently, in our economy, various indices and they can be grouped by geography, sector, company size or even asset classFor example, the US Nasdaq index consists of 100 major 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 is a stock index measured?
Each stock index has its own measurement method, but the key factor is the market capitalization of each company that makes it up. This is obtained by multiplying the daily value of a share in the respective stock market by the total number of shares outstanding in the market.
Mandatory for public companies shows balance its composition. This report should be reported every three or six months as the case may be.
Reading a stock index also requires taking into account its evolution over time. New indices are always opened at a constant value based on the prices of the securities their starting date, but not everyone follows this method. Therefore, it can lead to failures.
If one index gains 500 points in a day and the other gains 20 points, the former may appear to be doing well. But if the first one starts the day with 30,000 points and the second one with 300 points, it can be said that in percentage terms, the second one has a higher profit.
These are major stock indexes
between Major stock indices in the American Union Known as the Dow Jones Industrial Average Dow Jones, which consists of 30 companies. Likewise, S&P 500, which includes the 500 largest companies listed on the New York Stock Exchange. Finally, Nasdaq 100Includes 100 largest non-financial firms.
On the other hand, the most important indexes Europe is eurostoxx 50, which includes 50 largest companies in the euro area. As well as, DAX 30, the main German index covering 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 IBEX 35From the Spanish stock market.
year Asiawe have Nikkei 225, consisting of 225 large companies on the Tokyo Stock Exchange. There is also SSE Composite Index, can be considered the most representative of China, consisting of the most relevant companies on the Shanghai Stock Exchange. It is also worth mentioning that Khan Syng Index in Hong Kong and KOSPI in South Korea.
Talk about Latin americayou have TBIcontains The 35 most powerful firms on the Mexican Stock Exchange (BMV).. At least a third of them belong to the capital of tycoon Carlos Slim.
One more Bovespa, composed 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 de Caracas, consists of 6 companies from Venezuela.
Similarly, there are other types of global stock indices, e.g MSCI Latin AmericaIncludes 137 of the most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there is MSCI World, which includes 1600 companies from 23 developed countries; the MSCI Emerging Markets, consisting of more than 800 companies from developing countries; and S&P Global 100consists of the 100 most powerful multinational companies on the planet.
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