Day without changes for him KOSPIwhich closed on Friday, September 8 with a variation of the 0.02%until the 2,547.68 points. He KOSPI reached a maximum of 2,550.96 points and the minimum number of 2,530.05 points. The trading range for the KOSPI between its highest and lowest point (maximum-minimum) during this day it stood at the 0.82%.
Regarding the last seven days, the KOSPI notes a decrease in 0.63%; However, in interannual terms, there is still an increase in the 5.74%. He KOSPI is located a 4.48% below its maximum this year (2,667.07 points) and a 14.83% above its minimum rating for the current year (2,218.68 points).
A stock index It is an indicator that is used to know the evolution of the value of a certain set of assetsso it collects data from different companies or sectors of a fragment of the market.
These indicators are mainly used by the stock exchanges of different countries around the world and each of them can be integrated by firms with specific requirements 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 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 an entity. Generally, if investors do not have confidence, stock prices would tend to fall.
Likewise, they function to measure the performance of an asset manager and allow investors to make a comparison between return 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. carefully analyzed 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 in humanity there are various indices and They can be pooled based on their geographic location, industries, company size, or even asset class.For example, the US Nasdaq index is made up of the 100 largest companies largely 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 method, but the main factor is the market capitalization of each company that comprises it. This is obtained by multiplying the value of the title on the corresponding stock market by the total number of shares that are in circulation in the market.
Firms that appear on the stock market are obliged to present a balance of its composition. This report must be published every three or six months, as appropriate.
Reading a stock index also implies being careful of its changes over time. New indices always start with a fixed value based on security prices on your start date, but not everyone follows this method. Therefore, it can appear misleading.
If one index sees an increase of 500 points in one day, while another only gains 20, it might appear that the former performed better. However, if the first started the day at 30,000 points and the other at 300, it can be deduced that, in percentage terms, the gains for the second were considerable.
Between the main US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, of which 30 companies are part. Likewise, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Finally, there appears Nasdaq 100which links 100 of the largest non-financial firms.
On the other hand, the most notable indices of Europe are the eurostoxx 50, which covers the 50 most important companies in the eurozone. He too DAX 30, the main German index that contains the most prominent 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 the asian continentthe main stock indices are the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Furthermore, there is the SSE Composite Index, is seen as the preponderant in China, made up of the most relevant companies on the Shanghai Stock Exchange. Likewise, it is worth mentioning the Hang Seung Index in Hong Kong and KOSPI in South Korea.
Talking about the latin american regionyou have the CPIwhich contains the 35 most influential firms on the Mexican Stock Exchange (BMV). At least a third of them are owned by tycoon Carlos Slim.
Another is the Bovespa, made 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.
Likewise, there are other types of global stock indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there is the MSCI World, which includes 1,600 companies from 23 developed countries; he MSCI Emerging Markets, made 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.