Opening of the IBEX 35 this August 12


Open session without changes for the IBEX 35which opens the session on Friday, August 12 with a variation of the 0.14%until the 8,391.90 points, after opening. If we compare the figure with past dates, the IBEX 35 chain nine successive upload sessions.

In relation to the profitability of the last seven days, the IBEX 35 accumulates an increase in 2.74%; On the contrary, in year-on-year terms, it still maintains a decrease in 5.73%. The IBEX 35 stands a 6.06% below its maximum this year (8,933.60 points) and a 9.78% above its minimum price so far this year (7,644.60 points).

What is a stock index and what is it for?

a stock index is an indicator that shows how the price of a certain set of assets changesso you need to have data from different companies or sectors of a part of the market.

These indicators are mainly used by the stock exchanges of the countries and each of them can be integrated by companies with specific characteristics such as having a similar market capitalization or belonging to the same type of line of business, there are also 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 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 an entity. Generally, if investors lack confidence, share prices tend to fall.

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

This type of indicator began to be used at the end of the 19th century after journalist Charles H. Dow. closely watched how company stocks tended to go up or down together in price, so he created two indices: one containing the top 20 railroad companies (since it was the biggest industry at the time), as well as 12 actions of other types of businesses

Currently in our economy there are various indices and they can be grouped according to their location, sectors, company size or even the type of assetFor 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).

How to read an index?

Each stock index has its own way of being measured, but the main factor is the market capitalization of each firm that integrates it. This is obtained by multiplying the value of the day of the title in the corresponding stock market by the total number of shares that are in the market.

Companies listed on the stock exchange are required to present a balance of its composition. Said report must be disclosed 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 stock prices on your start date, but not everyone follows this method. Therefore, it can lead to inaccuracies.

If one index grows 500 points in a day, while another only adds 20, it might seem that the first index performed better. However, if the former started the day at 30,000 points and the other at 300, it can be deduced that, in percentage terms, the gains for the latter were more remarkable.

Major stock indices

Between the major US stock indices There is the Dow Jones Industrial Average, better known as Dow-Jones, of which 30 companies are part. Similarly, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Lastly, do not forget the Nasdaq 100which links 100 of the largest non-financial firms.

On the other hand, the most important indices of Europe are the Eurostoxx 50, which covers the 50 largest companies in the eurozone. In addition, the DAX 30, the main German index that contains the most outstanding companies on the Frankfurt Stock Exchange; the FTSE100 from the London Stock Exchange; the ACC 40 of the Paris Stock Exchange; and the IBEX 35of 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. Also, the SSE Composite Index, which is listed as the main one in China, made up of the most prominent companies on the Shanghai Stock Exchange. The same role played by Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about Latin Americayou have the CPIwhich contains at 35 most powerful firms of the Mexican Stock Exchange (BMV). At least a third of them belong to the capital of tycoon Carlos Slim.

Another is the Bovespa, made up 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 of Caracas, made up of 6 companies from Venezuela.

Finally, 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.

Similarly, there is 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 100made up of the 100 most powerful multinational firms on the planet.

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