Negative day for the Mexican S&P/BMV IPC index, which ended the session on Monday, December 23 with slight decreases in the 0.25%until the 49,461.36 points. The Mexican S&P/BMV IPC index reached a maximum of 49,738.28 points and a minimum volume of 49,031.88 points. The trading range for the Mexican S&P/BMV IPC index between its highest and lowest point (maximum-minimum) during this day was located in the 1.42%.
Taking into account the last seven days, the Mexican S&P/BMV IPC index marks a drop of 2.73%; On the contrary, in year-on-year terms it still maintains . The Mexican S&P/BMV IPC index is one 15.76% below its maximum so far this year (58,711.87 points) and a 0.42% above its minimum price of the current year (49,254.47 points).
A stock index is an indicator that shows how the price of a given set of assets evolvesso it collects data from various companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of various countries and each of them can be integrated by firms with different specificities such as having a similar market capitalization or belonging to the same type of industry. 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 market indices serve as indicator of stock market confidence, business confidence, health of the national and global economy, and stock investment performance and shares of a company. If investors do not have confidence, stock values would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make comparisons 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 the journalist Charles H. Dow. observed carefully how company shares tended to rise or fall in price together, so he created two indices: one that contained the 20 most important 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 congregate 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).
Each stock index has its own calculation methodbut the main component is the market capitalization of each company that comprises it. This is obtained by multiplying the daily value of the bond in the corresponding stock market by the total shares that are in the hands of the investors.
Firms listed on the stock exchange are required to present a balance of its composition. This report must be released every three or six months, as appropriate.
Reading a stock index also requires analyzing its evolution over time. New indices always start with a fixed value based on stock prices on your start date, but not everyone follows this method. Therefore, it can be misleading.
If one index adds 500 points in a day, while another only adds 20, it might appear that the first one performed better. But, if the first started the day at 30,000 points and the other at 300, it can be concluded that, in percentage terms, the gains for the second were larger.
Among the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Jonesof which 30 companies are part. Likewise, the S&P 500which includes 500 of the largest companies on the New York Stock Exchange. Finally, there appears Nasdaq 100which brings together 100 of the largest non-financial firms.
On the other hand, the most notable indices of Europe are the Eurostoxx 50which covers the 50 most important companies in the eurozone. On the other hand, the DAX 30the main German index that contains the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; he CAC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.
In Asiawe have the Nikkei 225made up of the 225 largest companies on the Tokyo Stock Exchange. Likewise, the SSE Composite Indexwhich appears as the main one in 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 KOSPI in South Korea.
With regards to the latin american regionyou have the CPIwhich contains the 35 most prestigious firms on the Mexican Stock Exchange (BMV). At least a third of them are part of the estate of tycoon Carlos Slim.
Another is the Bovespamade up 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, made up of 6 companies from Venezuela.
Also, 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 the MSCI Worldwhich includes 1,600 companies from 23 developed countries; he 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 entire planet.
