AEX is down 0.77% at the close of the day on October 5
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day off for him AEXwhich ended the session on Wednesday October 5th with drops of 0.77%until 664.45 points. That AEX marks the highest number of 669.76 points and min 661.37 points. The trading range for AEX between its highest point and its lowest point (maximum-minimum) on that day 1.25%.
Compared to last week, the AEX achieves an increase of 3.64% although on the contrary it still maintains a decline year-on-year 14.54%. That AEX stands a 17.39% below its maximum this year (804.28 points) and a 4.88% above his minimum score this year (633.55 points).
Stock market indices… for what?
a stock index is an indicator that shows how the price of a set of assets is changingi.e. data from different companies or sectors of a sub-market.
These indicators are mainly used by the stock exchanges of different nations each of them can be integrated by companies with specific characteristics For example, those who have a similar market capitalization or belong to the same type of company, there are also some indices that only consider a handful of stocks to determine their value, or others that consider hundreds of stocks.
Stock market indices serve as Indicator of confidence in the stock market, business confidence, the health of the national and global economy and the performance of investments in stocks and shares in a company. When investors lack confidence, share prices tend to fall.
They also work to measure that performance of an asset manager and allow a comparison between profitability and risk; measure the chances of a financial asset or create portfolios.
This type of indicator was used at the end of the 19th century Journalist Charles H. Dow. carefully researched how companies’ shares tended to rise or fall in price together, so he created two indices: one with the 20 largest railroad companies (it was the largest industry at the time) and 12 actions of other types of companies
Today there are various indices and They can be grouped by geography, sector, company size, or even asset typeFor example, the US Nasdaq Index consists of the 100 largest companies primarily 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).
How do you read an index?
Each stock index has its own calculation method, but the main component is the market capitalization of each company that integrates it. This results from multiplying the daily value of the title on the relevant stock exchange by the total number of shares on the market.
Listed companies are obliged to do so present a balance its composition. This report must be submitted every three or six months, depending on the case.
Reading a stock index also implies analyzing its evolution over time. New indices always start with a fixed value that is based on the prices of the securities on your start date, but not everyone follows this method. Therefore it may seem misleading.
If one index grows 500 points in one day while another adds just 20 points, it might appear that the first index has outperformed. However, if the former started the day with 30,000 points and the other with 300, it can be assumed that the gains for the latter were higher in percentage terms.
These are the major stock indices
Between major US stock indices There is the Dow Jones Industrial Average, better known as Dow Jones, consisting of 30 companies. Also the S&P500, which includes 500 of the largest companies on the New York Stock Exchange. Finally she comes Nasdaq100which brings together 100 of the largest non-financial companies.
On the other hand, the main indices of Europe are the Euro Stoxx 50, covering the 50 largest companies in the eurozone. additionally DAX30, the main German index with the strongest companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the acc 40 the Paris Stock Exchange; and the Capricorn 35the Spanish stock exchange.
in the the Asian continentWe have that Nike 225, composed of the 225 largest companies on the Tokyo Stock Exchange. There are those too Composite SSE Index, considered the most representative of China and composed of the most relevant companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the COSPI in South Korea.
Talk about the Latin American regionyou have the CPIwhich contains at 35 Most Powerful Companies of the Mexico Stock Exchange (BMV). At least a third of it belongs to magnate Carlos Slim.
Another is the Bovespa, composed of the 50 most important companies on the São Paulo Stock Exchange; the merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC from Caracas, composed of 6 companies from Venezuela.
Likewise, there are other types of global stock market indices such as MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.
Likewise, there are MSCI world, which includes 1,600 companies from 23 developed countries; the MSCI Emerging Markets, composed of more than 800 companies from developing countries; and the S&P Global 100composed of the 100 most powerful multinational companies in the world.
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