Opening of the main BMV indicator on March 15

Good start for the Mexican S&P/BMV IPC index, which opens Tuesday, March 15 with a variation of 0.05%, reaching 52,836.37 points. As for the changes of this day compared to previous days, the Mexican S&P/BMV IPC index ends three consecutive sessions with a trend.

In the last seven days, the Mexican S&P/BMV IPC index has recorded a decrease of 0.85%; on the contrary, in the last year it still maintains an increase of 11.07%. The Mexican S&P/BMV IPC index is 2.11% below its peak this year (53,973.27 points) and 4.7% above its year-to-date minimum price (50,466.02 points).

A stock market index is an indicator used to show the evolution of the value of a given set of assets, for which it collects data from different companies or sectors of a part of the market.

These indicators are used mainly by stock exchanges of various nations and each of them can be integrated by firms with specific characteristics such as having a similar market capitalization or belonging to the same industry, in addition, there are some indices that only take into account a handful of actions to determine their value or others that consider hundreds of shares.

Stock indices serve as an 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 a company. Generally, if investors are not confident, stock prices would tend to fall.

They also work to measure the performance of an asset manager and allow a comparison between return and risk; measure the opportunities of a financial asset; or create portfolios.

These types of indicators began to be used in the late 19th century after journalist Charles H. Dow. carefully investigated how companies' shares tended to rise or fall together in price, so it created two indexes: one containing the 20 most important railway companies (since it was the most important industry of the time), as well as 12 shares of other types of businesses

There are currently several indexes and can be associated according to their geographic location, sectors, company size or even type of asset, for example, the US Nasdaq index is composed of the 100 largest companies mostly related to technologies 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 calculating itself, but the main component is the market capitalization of each company that integrates it. This is obtained by multiplying the value of the day of the security on the corresponding exchange by the total number of shares that are in the market.

Companies listed on the stock exchange are obliged to submit a balance sheet of their composition. This report should be reported every three to six months, as appropriate.

Reading a stock market index also requires taking care of its alterations over time. Current indices always start with a fixed value based on the stock prices on their start date, but not all of them follow this method. Therefore, it can be misleading.

If one index grows 500 points in one day, while another only adds 20, it might seem that the former had a better return. But, if the first started the day at 30,000 points and the other at 300, it can be seen that, in percentage terms, the gains for the second were higher.

Among the main US stock indices is the Dow Jones Industrial Average, better known as Dow Jones, which is made up of 30 companies, the S&P 500, which comprises 500 of the largest companies on the New York Stock Exchange. Finally, we must not forget the Nasdaq 100, which brings together 100 of the largest non-financial firms.

On the other hand, the most prominent indices in Europe are the Eurostoxx 50, which covers the 50 most important companies in the eurozone. Also, the DAX 30, the main German index containing the most prominent companies on the Frankfurt Stock Exchange; the FTSE 100 of the London Stock Exchange; the CAC 40 of the Paris Stock Exchange; and the IBEX 35, of the Spanish stock exchange.

On the Asian continent, the main stock market indices are the Nikkei 225, made up of the 225 largest companies on the Tokyo stock exchange. Likewise, the SSE Composite Index, which can be considered the preponderant in China, made up of the most important companies on the Shanghai Stock Exchange. Similarly, mention should be made of the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

As far as the Latin American region is concerned, we have the CPI, which contains the 35 most prestigious firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by magnate Carlos Slim.

Another is the Bovespa, made up of the 50 most important companies on the Sao Paulo stock exchange; the Merval of Argentina; the IPSA of Chile; the IGBC in Bogotá; 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 America, which includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.

There is also 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 100, made up of the 100 most powerful multinational firms on the planet.

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