Start of the day on the rise for the RTSI (Russia)which begins the session on Tuesday, January 24 with slight rises in the 0.84%until the 1,007.12 points, after opening. Comparing this data with that of past dates, the RTSI (Russia) Add two consecutive days of positive numbers.

In relation to the last week, the RTSI (Russia) mark a rise in 0.43%; On the contrary, in the last year there has still been a decrease in the 37.17%. The RTSI (Russia) a 1.69% below its maximum this year (1,024.44 points) and a 7.04% above its minimum price so far this year (940.85 points).

Stock indices… What for?

a stock index It is an indicator that shows how the value of a set of assets evolvesso it collects data from various companies or sectors of a fragment of the market.

These indicators are used mainly by the stock markets of various countries and each of them can be integrated by firms with specific requirements such as having a similar market capitalization or belonging to the same type of industry, there are also some indices that only consider a handful of shares to determine their value or others that consider hundreds of shares.

Stock indices serve as indicator of confidence in the stock market, business confidence, the health of the national and global economy, and the performance of stock investments and shares of an entity. Generally, if investors are not confident, stock values ​​tend to fall.

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

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

Currently in our economy there are various indices and They can congregate based on their geography, industries, company size, or even asset classFor example, the US Nasdaq index is made up of the 100 largest largely technology-related companies 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 calculating, but the main factor is the market capitalization of each company that integrates it. This is obtained by multiplying the daily value of the share in the corresponding stock market by the total number of shares that are in circulation in the market.

Publicly listed companies are required to present a balance of its composition. Said report must be published every three or six months, as the case may be.

Reading a stock index also requires observing its changes over time. Current indices always start with a fixed value based on security prices on their start date, but not everyone follows this method. Therefore, it can be misleading.

If one index sees an increase of 500 points in one day, while another only gets 20, it might appear that the former performed better. But, if the former started the day at 30,000 points and the other at 300, you can see that, in percentage terms, the gains for the latter were more important.

What are the major stock indices?

Between the major US stock indices is the Dow Jones Industrial Average, better known as Dow Jonesmade up of 30 companies, the S&P 500, which includes 500 of the largest companies on the New York Stock Exchange. Lastly comes the Nasdaq 100which associates 100 of the largest non-financial firms.

On the other hand, the most prominent indices of Europe are the eurostoxx 50, which covers the 50 largest companies in the euro area. On the other hand, the DAX 30, the main German index containing the strongest companies on the Frankfurt Stock Exchange; the FTSE 100 from the London Stock Exchange; the ACC 40 from the Paris Stock Exchange; and the IBEX 35from the Spanish stock market.

In the asian continentwe have the nikkei 225, made up of the 225 largest companies on the Tokyo Stock Exchange. Also, the SSE Composite Index, is seen as the most representative of China, made up of the most relevant companies on the Shanghai Stock Exchange. Similarly, it is worth mentioning the Hang Seung Index in Hong Kong and the KOSPI in South Korea.

Talking about Latin Americayou have the CPIwhich contains the 35 most outstanding firms of 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; the Merval from Argentina; the IPSA From Chile; the MSCI COLCAP from Colombia; the IBC de Caracas, made up of 6 companies from Venezuela.

Similarly, there are other types of global stock market indices such as the MSCI Latin Americawhich includes the 137 most important companies in Brazil, Chile, Colombia, Mexico and Peru.

Similarly, there is 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 entire planet.

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