Bearish session for Nice 50which begins the session on Thursday, October 26 with notable declines in the 0.72%till 18,984.05 points, after the start of the opening session. Regarding the days gone by Nice 50 adds six consecutive dates in negative values.
If we consider data from the last seven days, Nice 50 marks a fall 3.49%; On the other hand, in the last year it has still maintained an increase in 8.4%. He Nice 50 if one is located 5.98% below its maximum so far this year (20,192.35 points) and a 12.03% above its minimum price for the current year (16,945.05 points).
A stock index It is an indicator that shows how the value of a set of assets changes.so it takes data from different companies or sectors of a part of the market.
These indicators are mainly used by the countries’ stock exchanges and each of them can be integrated by companies with specific characteristics to have a similar market value or to belong to the same type of industry. Likewise, there are some indices that only consider a handful of stocks to determine their value, or others that take into account hundreds of stocks.
Stock market index serves as indicator of stock market confidence, business confidence, the health of the national and global economy and stock investment performance and shares in an entity. If investors lack confidence, stock prices will tend to fall.
They also work for measuring performance of an asset manager and allow investors to make a comparison between profitability and risk; measure the possibilities of a financial asset or create portfolios.
This type of indicators began to be used in the late 19th century after journalist Charles H. Dow. carefully analyzed how company stocks tended to rise or fall together, so he created two indexes: one containing the 20 main railroad companies (since that was the most important industry at the time), as well as 12 stocks of other types of companies
Currently in our economy there are various indices and They can be associated based on their geographical location, sectors, company size or also the type of assetFor example, the US Nasdaq index consists of the 100 largest companies mainly 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).
Each stock index has its own way of calculation, but the main component is the market value of each company that comprises it. This is achieved by multiplying today’s value of the security on the corresponding stock market by the total number of shares held by the investors.
Companies that appear on the stock market are obliged to present a balance sheet of its composition. The report shall be published every three or six months, as appropriate.
Reading a stock index also requires paying attention to its development over time. Current index always starts with a fixed value based on share prices on your start date, but not everyone follows this method. Therefore, it can be a source of misunderstandings.
If one index gains 500 points in one day, while another gains only 20, it may appear that the first did better. But if the first started the day at 30,000 points and the second at 300, it can be assumed that the gains for the second were percentage-wise larger.
Between major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, which consists of 30 companies. That too S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget Nasdaq 100which brings together 100 of the largest non-financial companies.
On the other hand, the most notable indexes are for Europe is Eurostoxx 50, which covers the 50 most important companies in the eurozone. Moreover DAX 30, the main German index containing the most prominent companies on the Frankfurt Stock Exchange; that FTSE 100 from the London Stock Exchange; he CAC 40 from the stock exchange in Paris; and IBEX 35from the Spanish stock market.
IN Asiaare the most important stock indices Nikkei 225, which consists of the 225 largest companies on the Tokyo Stock Exchange. There is also SSE Composite Index, is seen as the most solid in China, consisting of the most relevant companies on the Shanghai Stock Exchange. The same role is played Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about the Latin American regionyou have IPCwhich contains 35 most outstanding companies on the Mexican Stock Exchange (BMV). At least a third of them belong to tycoon Carlos Slim’s capital.
Another is Bovespa, consisting of the 50 most important companies on the Sao Paulo Stock Exchange; he Merval from Argentina; he IPSA From Chile; he MSCI COLCAP from Colombia; he IBC of Caracas, consisting of 6 companies from Venezuela.
Finally, there are other types of global stock indices such as MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise there is MSCI world, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, which consists of more than 800 companies from developing countries; and S&P Global 100which consists of the 100 most powerful multinational companies on the entire planet.