The Nikkei 225 index ended on Tuesday, March 15, with a positive change of 0.15%, ending at 25,346.48 points. The maximum trading volume reached 25,441.67 points and the minimum trading volume reached 25,219.13 points. The trading range between the highs and lows (highs) of Nikkei 225 was 0.87%.
Over the past 7 days, Nikkei 225 recorded an increase of 2.24%. On the other hand, for a year it still decreased by 12.39%. Nikkei 225 is 13.59% lower than the year-over-year high (29,332.16 points) and 2.54% higher than the minimum contribution for the current year (24,717.53 points).
A stock market index is an indicator that is used to know the evolution of the value of a set of assets, so there must be data from another company or sector in a part of the
These indicators are mainly used on the stock exchanges of different countries, and each indicator can be consolidated by companies with specific characteristics, such as having similar market capitalization or belonging to the same type of industry, and there are also indices that consider only a small number of stocks, to determine the value or other values that take into account hundreds of stocks.
A stock index is an indicator of confidence in the stock market, confidence in the business, the health of the national and global economy, and the performance of a company's investments in stocks and shares. Generally, stock prices tend to fall if investors are not confident.
It also measures the performance of asset managers and allows investors to compare profits and risks, measure opportunities for financial assets, or create portfolios.
This type of indicator began to be used at the end of the 19th century after the journalist Charles H. He carefully watched how the company's shares tend to rise or fall in price, so he created two indices. One includes the 20 most important railway companies (since they are the most important industries at the time) and 12 states of the other type of business.
Today, there are several indices in our economy, which can be grouped according to geography, sector, company size or asset type.For example, the US NASDAQ index is Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), Tesla (TSLA), Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe It consists of the top 100 companies that are largely related to technologies such as (ADBE).
Each stock index has its own calculation method, but the main factor is the market capitalization of each company that incorporates it, which is extracted by multiplying the day value of the bond on that stock exchange by the total number of shares held by the investor.
Companies listed on the stock exchange must present a balance sheet of its composition. This report should be released every 3 to 6 months, where appropriate.
Reading stock indices also involves analyzing changes over time. Current indices always start with a fixed value based on the stock price of the start date, but not all indices follow this method, so it can be misleading.
If one index increases by 500 points per day and the other only adds 20 points, the first index may appear to be better. However, if the first started at 30,000 points and the other started at 300 points, the percentage shows that the gain of the second point is more significant.
Among the major US stock indices is the Dow Jones Industrial Average, which consists of 30 companies, better known as the Dow Jones. Similarly, the S&P 500 includes the 500 largest companies on the New York Stock Exchange. Finally, the NASDAQ 100 connects the 100 largest non-financial companies.
On the other hand, the most prominent indices in Europe are Eurostoxx 50, which encompasses the 50 most important companies in the Eurozone; on the other hand, the DAX 30, Germany's main index, which includes the most outstanding companies on the Frankfurt Stock Exchange; the FTSE 100 on the London Stock Exchange; CAC 40 on the Paris Stock Exchange; and IBEX 35 on the Spanish Stock Exchange.
In the Asian continent, the main stock market index is Nikkei 225, which is made up of 225 major companies on the Tokyo Stock Exchange. It also has an SSE composite index and is considered to represent China, which consists of the most relevant companies on the Shanghai Stock Exchange.Similarly, it is necessary to mention Hong Kong's Hang Seung Index and Korea's KOSPI.
As far as Latin America is concerned, there is a CPI that includes the 35 most consolidated companies on the Mexican Stock Exchange (BMV). At least a third of them are owned by the tycoon Carlos Slim.
Another is Bovespa, which consists of the 50 most important companies on the São Paulo Stock Exchange. It is Merval, Argentina; IPSA in Chile; IGBC in Bogotá; IBC in Caracas, which is made up of 6 companies in Venezuela.
There are also other types of global stock indices, such as MSCI Latin America, which includes 137 of the 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, an emerging market of MSCI with more than 800 companies in developing countries, and the S&P Global 100, which comprises 100 of the most powerful multinational companies on the planet.
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