SENSEX: SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors. The base year of SENSEX was taken as 1978-79. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. It is scientifically designed and is based on globally accepted construction and review methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. The "free-float market capitalization-weighted" methodology is a widely followed index construction methodology on which majority of global equity indices are based; all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.
The growth of the equity market in India has been phenomenal in
the present decade. Right from early nineties, the stock market witnessed
heightened activity in terms of various bull and bear runs. In the late
nineties, the Indian market witnessed a huge frenzy in the 'TMT' sectors. More
recently, real estate caught the fancy of the investors. SENSEX has captured
all these happenings in the most judicious manner. One can identify the booms
and busts of the Indian equity market through SENSEX. As the oldest index in
the country, it provides the time series data over a fairly long period of time
(from 1979 onwards).
Shanghai Composite: Constituents for SSE
Composite Index are all listed stocks (A shares and B shares) at Shanghai Stock
Exchange. The Base Day for SSE Composite Index is December 19, 1990. The Base
period is the total market capitalization of all stocks of that day. The Base
Value is 100. The index was launched on July 15, 1991.
SSE Indices are all calculated using a Paasche weighted composite price index
formula. This means that the index is based on a base period on a specific base
day for its calculation. Composite Indices and Sector Indices are weighted by shares.
Hang Seng: It is one of the earliest stock market indexes in
Hong Kong. It was first launched in 24th Nov 1969, considered as
main indicator of overall performance of market in Hong Kong as it represents
daily changes of largest companies in Hong Kong. It consists of 45 companies
that contribute to almost 60% stock market capitalization in Hong Kong. HSI is
currently owned and compiled by Hang Sang Indexes Company that is owned by Hang
Seng Bank, one of the large banks in Hong Kong in terms of market
capitalization. At its first launce its base of 100 points was set equal to
total value of the market closed on 31st July 1964. It’s shown all
time low 58.61 points on 31st august 1967 and reached its all time
high on October 30, 2007, was 31,958.41 points
Jakarta Composite: The Jakarta Stock Price Index is a modified
capitalization-weighted index of all stocks listed on the regular board of the
Indonesia Stock Exchange. The index was developed with a base index value of
100 as of August 10, 1982. JCI is owned by Indonesia Stock Exchange.
Nikkei 225: It is a major stock market index in Japan that was
started to be calculated on 7th Sep 1950, owned by Tokyo Stock
Exchange. The 225 components of the Nikkei Stock Average are among the most
actively traded issues on the first section of the TSE. Since the Nikkei Stock
Average is expected to represent the performance of stocks on the first section
and by extension the market in general the mix of components has been
rebalanced from time to time to assure that all issues in the index are both
highly liquid and representative of Japan's industrial structure. The
average peaked at 38,915.87 points on December 29, 1989. All companies are given an equal weighting based on
a par value of 50 yen per share. It has been calculated daily by the Nihon
Keizai Shimbun (Nikkei) newspaper since 1950. Nikkei is most widely quoted
Average of Japanese equities, similar to Dow Jones Industrial average,
therefore it was also known as “Nikkei Dow Jones Stock Average” from 1975 to
1985. The Nikkei 225 is designed to reflect the overall market, so there is no
specific weighting of industries.
Merval: The Argentina Merval Index, a basket weighted index, is the
market value of a stock portfolio, selected according to participation in the
Buenos Aires Stock Exchange, number of transactions and trading value. The
index has a base value of $0.01 as of June 30, 1986. The index is revised every
3 months, taking into account the trading volumes over the past 6 months.
It is a price-weighted index, calculated
as the market value of a portfolio of stocks selected based on their market
share, number of transactions and quotation price.
ATX: The Austrian Traded Index (ATX) is the most
important stock market of the Wiener Borse and the largest trading place in the
Austrian Economy. The ATX is defined as price index and currently consists of
20 stocks that are listed in Vienna Stock Exchange. The ATX, the underlying for
the options and futures contracts traded on Wiener Börse, tracks the price
trends of the blue chips on Wiener Börse in real time. The composition of the
ATX is reviewed every year in March and September. The main criteria for
inclusion or deletion are the capitalized free float and stock exchange trading
volumes. With every review, no more than three stocks may be changed in the
composition of the index. Start date was
1st Feb 1991 and the value at which it started was 1000 Punkte.
During the last years, the
ATX underwent a couple of ups and downs of the market: after the Russia crisis
in the second half of the nineties and the dotcom bubble at the beginning of
the new millennium, the ATX succeeded in establishing a continuous positive development until the all-time high
of 5,000 points on July 9, 2007. After the sub-prime and financial crisis in
the years 2008 and 2009, the ATX decreased below 2,000 points. Since the
launch on January 2, 1991 the average annual performance of the ATX reaches
9.7%
Ibovespa: The Bovespa Index (Portuguese: Índice Bovespa) is an index of about 50 stocks that are traded on the São Paulo Stock,
Mercantile & Futures Exchange
The index is composed by a theoretical portfolio
with the stocks that accounted for 80% of the volume traded in the last 12
months and that were traded at least on 80% of the trading days. It's revised
quarterly, in order to keep its representativeness of the volume traded and in
average the components of Ibovespa represent 70% of the all the stock value
traded.
IBOVESPA is an accumulation index. Its index number
represents the present value of a portfolio begun on 2 January 1968, with a
starting value of 100 and taking into account share price increases plus the
reinvestment of all dividends, subscription rights and bonus stocks received.
IPC Index: The Prices and Quotations Index is the main
indicator of the Mexican Stock Exchange, it expresses the yield of the stock
market based on the prices variations of a balanced, weighted and
representative group of stocks of the ones that are listed in the Stock
Exchange. It is made up of a balanced weighted selection of shares that are
representative of all the shares listed on the exchange from various sectors
across the economy, and is revised twice a year. Weight is determined by market capitalization. The IPC's value is
related to the previous day's value, rather than the base date of October 30,
1978. Since February 2009 the IPC index has included BMV's own A shares.
500 Index: The S&P 500 is a free-float capitalization-weighted index published
since 1957 of the prices of 500 large-cap common
stocks actively
traded in the United States. The stocks included in the
S&P 500 are those of large publicly held companies that trade on either of the two
largest American stock market exchanges: the New York Stock Exchange and the NASDAQ. The S&P
500® has been widely regarded as the best single gauge of the large cap
U.S. equities market since the index was first published in 1957. The index has
over US$ 5.58 trillion benchmarked, with index assets comprising approximately
US$ 1.31 trillion of this total. The index includes 500 leading companies in
leading industries of the U.S. economy, capturing 75% coverage of U.S.
equities. S&P 500 is maintained by the S&P Index
Committee,
a team of Standard & Poor’s economists and index analysts, who meet on a
regular basis. The goal of the Index
Committee is to ensure that the S&P 500 remains a leading indicator of U.S.
equities, reflecting the risk and return characteristics of the broader large
cap universe on an on-going basis. The
Index Committee also monitors constituent liquidity to ensure efficient
portfolio trading while keeping index turnover to a minimum.
FTSE 100 index: The FTSE 100 Index is one of the world’s most recognized
indices and accounts for 7.8% of the world’s equity market capitalization. It
represents the performance of the 100 largest blue chip companies listed on the
London Stock Exchange, which meet the FTSE’s size and liquidity screening.
The index represents
approximately 85.2% of the UK’s market and is currently used as the basis for a
wealth of financial products available on the London Stock Exchange, National
Stock Exchange of India and others institutions globally. The
index is maintained by the FTSE
Group, an independent company jointly owned by the Financial Times and the London Stock Exchange. It is calculated in real time and
published every 15 seconds. The index began on 3 January 1984 with a base level
of 1000; the highest value reached to date is 6950.6, on 30 December 1999.
After falling dramatically during the financial crisis of 2007-2010 to a low of below 3,500 in March
2009, the index recovered by a significant margin to its peak since then of
6,091.33 on 8 February 2011, its highest level since mid-2008. It has fallen sharply since then to under the 5,000 mark
on the morning of 23 September 2011. It is the most widely used of the FTSE
Group's indices, and is frequently reported (e.g. on UK news
bulletins) as a measure of business prosperity. Component companies must meet a
number of requirements set out by the FTSE
Group, including having a full listing on the London Stock
Exchange with Sterling or Euro denominated price on the Stock Exchange
Electronic Trading Service, and meeting certain tests on nationality, free
float, and liquidity. In the FTSE, share prices are weighted
by market capitalization,
DAX: DAX (Deutscher Aktien Index) is blue chip market
index that measures the development of the 30 largest and best-performing
companies on the German equities market (Frankfurt Stock Exchange) and
represents around 80% of the market capital authorized in Germany. As one of
the most important equity indices in the world, it serves as an underlying for
more than 40,000 financial products and is the third largest underlying
for derivatives. The Base date for the DAX is 30 December, 1987 and it was
started from a base value of 1,000.Prices is taken from XETRA system and that
system calculates the index after every 1 second since January 1, 2006.
S&P/TSX: The
S&P/TSX Composite is the headline index for the Canadian equity market. It
is the broadest in the S&P/TSX family and is the basis for multiple
sub-indices including but not limited to equity indices, Income Trust Indices,
Capped Indices, GICS Indices and market cap based indices. The Toronto Stock
Exchange (TSX) serves as the distributor of both real-time and historical data
for this index.
For eligibility any security must represent a minimum weight
of 0.05% of the index. Moreover, the security must have a minimum weighted
average price of at least C$1 over the past three months and over the last
three trading days of the month-end prior to the exchange reviewing the index.
The trading volume in terms of dollar value and the number of transactions must
exceed at least 0.025% of the sum of all eligible securities' trading volume.
To ensure that no single company dominates trading, they are capped at a
maximum of 15% for value, volume and transactions and Stocks must be listed on
the Toronto Stock Exchange and be incorporated under Canadian laws.
REFERENCE:
http://economictimes.indiatimes.com/news/international-business/IMF-sees-weaker-global-economy/articleshow/10947073.cms
http://economictimes.indiatimes.com/news/economy/indicators/Global-economy-in-2012-may-be-worse-IMF-chief-economist/articleshow/11203764.cms
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