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The BMV opens lower and marks its third straight day with losses

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These are the main functions of the Mexican Stock Exchange, which allows both companies and governments to finance projects

Bad start to the day Mexican Stock Exchange (BMV) which was recorded Important losses After the markets open on June 14. The BMV’s benchmark index fell by nearly one percentage point during the early hours of Friday and is aiming to add its third straight day in the red.

Mexico’s S&P/BMV IPC started the day with a decline of… 0.71%even the 51904.94 points. Compared to previous days, the S&P/BMV IPC reflects data from the previous day when it saw a 1.32% increase, without being able to identify a clear trend recently.

In the past seven days, the Mexican index recorded a decrease of 2.29%% And for a year there is still a decline in 3.57%.

The S&P/BMV IPC is one 11.59% Below the maximum so far this year (58711.87 points) and 0.19% Above the minimum rating for the current year (51,807.55 points).

The BMV party has recorded significant losses since the results of the June 2 elections, in which the official presidential candidate, Claudia Sheinbaum, emerged victorious, and the ruling Morena Party, along with its allies, obtained a majority in Congress.

The declines occur because investors are concerned about several constitutional reforms prepared by President Andrés Manuel López Obrador, such as changes in the judiciary, the electoral institute and the disappearance of independent bodies.

It’s been tough days for the BMV (Reuters/Toya Sardou Jordania)

Stock index It is an indicator that shows how the value of a particular group of assets is evolvingSo it uses data from different companies or sectors for a portion of the market.

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These indicators are mainly used by stock exchanges in various countries around the world Each of them can be integrated by companies with specific requirements Such as having a similar market value or belonging to the same type of industry. There are also some indicators that take into account only a handful of stocks to determine their value, or other indicators that take into account hundreds of stocks.

Stock market indices act as Stock market confidence index, business confidence, national and global economic health, and stock investment performance And company shares. In general, if investors do not have confidence, stock prices tend to fall.

Likewise, they work to measure Asset manager performance Allow investors to compare profitability and risk; Measure financial asset opportunities or create portfolios.

This type of indicator began to be used at the end of the nineteenth century Journalist Charles H. Dao. He looked closely at how stocks of companies tended to rise or fall in price together, so he created two indexes: one containing the 20 most important railroad companies (because they were the most important industry at the time), plus 12 stocks from other railroad companies. Business types

Nowadays there are many indicators and They can be grouped together based on their geographic location, sectors, company size, or even asset type.For example, the US Nasdaq index consists of the top 100 companies mostly related to technology such as Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Facebook (FB), Alphabet (GOOG), and Tesla (TSLA). , Nvidia (NVDA), PayPal (PYPL), Comcast (CMCSA), Adobe (ADBE).

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Each stock index has its own method of calculationBut the key element is the market capitalization of each company that comprises it. This is obtained by multiplying the today’s value of a security in the corresponding stock market by the total number of shares present in the market.

Companies listed on the stock exchange are obligated to do so Provide balance Of its composition. The said report must be published every three or six months, as appropriate.

Reading a stock index also involves monitoring its changes over time. Current indices always start with a fixed value based on security prices On the start date, but not everyone follows this method. Therefore, it can be a source of misunderstanding.

If one index added 500 points in a day, while another gained only 20, it may appear that the first index performed better. But if the first started the day at 30 thousand points and the other at 300 points, it can be assumed that the gains of the second day were greater in percentage terms.

between the Major stock indices in the US Federation There is the Dow Jones Industrial Average, commonly known as… Dow JonesWhich consists of 30 companies. also, Standard & Poor’s 500Which includes 500 of the largest companies on the New York Stock Exchange. Finally, we must mention Nasdaq 100which includes 100 of the largest non-financial companies.

On the other hand, the most prominent indicators Europe she Eurostock 50, which covers the 50 most important companies in the euro area. On the other hand, the DAX 30It is the main German index that contains the strongest companies on the Frankfurt Stock Exchange. the FTSE 100 index From the London Stock Exchange; he CAC 40 From the Paris Stock Exchange; And the Ibex 35from the Spanish stock market.

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in Asian continentwe have the Nikki 225, consisting of the 225 largest companies on the Tokyo Stock Exchange. And there too SSE Composite IndexWhich appears as the most prominent in China, and consists of the most prominent companies on the Shanghai Stock Exchange. The same role he played Hang Seong Index In Hong Kong and Cosby In South Korea.

We’re talking about latin americaYou have Consumer price indexwhich contains 35 most influential companies on the Mexican Stock Exchange (BMV). At least a third of it is owned by businessman Carlos Slim.

Another is Bovespa, consisting of the 50 most important companies on the Sao Paulo Stock Exchange; he Merval From Argentina; he IPSA From Chile; he MSCI COOLCAP From Colombia; he cry Caracas, consisting of 6 companies from Venezuela.

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

Likewise, there MSCI WorldWhich includes 1,600 companies from 23 developed countries; he MSCI Emerging MarketsIt consists of more than 800 companies from developing countries; And the Standard & Poor’s Global 100consisting of the 100 most powerful multinational companies on the entire planet.

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