At the same time, traders’ attention is sometimes focused on indices even more than on the securities included in their portfolios. A reasonable question arises - what are stock exchange indices and why are they so important? We'll tell you in this article.

Types of indexes

At their core, indices are a kind of barometers that show the general direction of the dynamics of a certain group of assets, which can be growing, falling or sideways (with minor changes). Accordingly, there can be quite a lot of asset groups for which indices are calculated, and each of these groups has its own companies, which can be included in the index calculation methodology and form its “index basket.”

Indices come from different countries (MSCI Russia - MSCI index stock market Russia) or country associations on some basis (MSCI Emerging markets - MSCI index of emerging markets). There are also:

Share indices (calculated according to their specific criterion) - such as the MICEX and RTS, the most popular in Russia,
. indices of companies of various capitalizations - for example, Large Caps, Medium and Small Caps,
. bond market indices,
. various industry indices.

That is, there are quite a lot of criteria by which indices are calculated.

Rice. 1. Structure of Moscow Exchange stock indices

It is worth noting that in total there are about 3 thousand different indices in the world, which are calculated both by exchanges (for example, the MICEX and RTS indices) and by various agencies (MSCI - Morgan Stanley Capital International Inc.). Moreover, the most significant and popular indices are often not only calculated, but also form entire families of indices, united according to some specific criterion (FTSE 100, FTSE 250, etc.). Often after the name of the index there is a number, which, as a rule, indicates the number of companies that form its index basket.

The index is a barometer of these companies. Some of them will increase, some will decrease, and some will remain unchanged, and the index will show exactly the general direction of the group (the principle of the swan, crayfish and pike). That is, if 20 companies out of 30 are growing, 5 are declining, and another 5 are marking time, then the index will grow (if these companies form its index basket). Moreover, the growth of the index will indicate that the growth valuable papers is more likely to continue than to stop, and the 5 companies that are “sideways” are also likely to move to growing dynamics, and the 5 that were declining will most likely stop falling in price or even show growth.

Charles Dow himself compared stock market indices to horses, saying that most could pull out a stuck cart. Thus, the dynamics of the index can predict the behavior of shares of the group that the index characterizes. The MICEX and RTS indices are calculated based on shares of 50 companies with the maximum capitalization. The MICEX index expresses its dynamics in rubles, and the RTS index in US dollars.

The first index was the Dow Jones Transportation Average, which was introduced by Charles Dow on July 3, 1884. At that time, this index was calculated using the prices of the 11 largest transport companies in the United States. As the years passed, some companies in the index basket were replaced by others, and the total number of companies in the index basket was also adjusted. Accordingly, index baskets are subject to periodic review (usually quarterly), during which changes may or may not be made.

Application of indices on the stock exchange

Information about such rebalancing is carefully monitored by various professional participants. What is it for? For example, if a security is included, for example, in the MICEX index, then many funds that duplicate the structure of this index in their portfolios ( index funds), will be required to bring the share of securities in portfolios to the share in the index, that is, to purchase shares of a company included in the index. And these are purchases for quite serious money that can affect the dynamics of these shares.

Also, many analysts say that at certain index values ​​it is advisable to include/exclude securities in your portfolio. The fact is that the dynamics of changes in stock market indices are also subject to research using technical analysis, and if the index begins to form an upward trend after a downward one, this can serve as a growth driver for a wide range of securities, the purchase of which would be advisable to think about.

Rice. 3. Correlation of the MICEX index and Sberbank shares

You can often hear statements like “I’m buying RTS at such and such a price,” but it’s not entirely true to say that. It's more of a jargon than a literal expression. An index is a value that is calculated but not traded (in nature, an index is only a calculated value that characterizes the dynamics of a group of assets). But there are derivative instruments for indices - futures and options, which are traded, and hedging and arbitrage operations are also carried out. There are also shares for indices investment funds, which can be purchased on the Moscow Exchange. They repeat the dynamics of indices, but are cheaper than if you include index shares in your own portfolio in appropriate proportions.

Rice. 4. Turnover and number of transactions on futures contracts for indices on the Moscow Exchange

Conclusion

The dynamics of stock market indices are extremely important for determining the most likely direction of movement of prices of exchange assets. Indices help to better understand which assets are becoming market favorites and which, on the contrary, are becoming outsiders. Using indices, portfolio managers assess when it is best to rebalance portfolios and carry out risk management by hedging existing positions.

To be successful on the securities market, you must always monitor information about changes on it. But this is a very large amount of information, and analysis takes a lot of time. To facilitate this process use stock indices.

Stock market index – a certain number characterizing its qualitative state. Moreover, the value of this number itself does not carry significant information. What is important is not the value of this number itself, but the result of its comparison with the values ​​it previously took. Thus, indices are a tool for assessing the behavior of the securities market, reflecting ongoing macroeconomic processes.

Depending on the choice of securities, information about which is used to calculate the index, it can characterize the stock market as a whole, the market for groups of securities (government securities market, bond market, stock market, etc.), the securities market of some kind or industry ( oil and gas complex, telecommunications, transport, banks, etc.). A comparison of the dynamics of the behavior of these indices can show how the state of any industry is changing in relation to the economy as a whole. If indices rise, this indicates rising prices, and the market is called a bull market. If they decline, then it is a bear market. In world practice it is calculated a large number of indices, for the determination of which various samples of companies and calculation methods are used.

Stock indices are calculated and published by various sources, which, as a rule, are news agencies and stock exchanges.

Stock index (stock index – stock index, bond index – bond index) – an indicator calculated for any representative set of stock instruments traded on the securities market in order to assess the level and general direction of movement of their value.

A stock index is a dimensionless quantity, regardless of the method of its calculation. The three most commonly used methods for calculating stock indices are:

1. Simple arithmetic average method.

Basic formula J=

Where J – index value for a given point in time; Ci – price i th security included in the securities for calculating the index; P – a divisor based on the number of securities (companies) included in the index.

2. Weighted arithmetic mean method.

Basic formula

where M is a dimensionless factor (usually 100); J0 – index value for the previous point in time; Ci and Ci0 – price i-th valuable paper, respectively, at the current and previous points in time; Ki and Ki0 – quantity i th security in circulation at the current and previous points in time, respectively.

3. Geometric mean method.

Basic formula

Where J, – price change index i the th security included in the securities that make up the index; P – the number of securities (companies) included in the index.

Calculating stock indices using the formulas discussed has its advantages and disadvantages, therefore all these methods of calculating indices are in demand by the market.

The more history a stock index has, the more valuable it is for predicting the future reaction of the market to certain events based on its past behavior. However, the market situation is constantly changing - mergers and acquisitions, bankruptcies of old companies and the emergence of new ones that are rapidly increasing their capitalization. Therefore, from time to time there is a need to make changes to the sample on the basis of which the index is calculated. If such adjustments are made infrequently, there is a danger that the index will begin to lag behind market developments; if adjustments are made too often, the index will begin to “lose” its history and, while maintaining the same name, reflect changes in a different sector of the market.

Currently, there are a huge variety of stock indices, differing both in the method of calculation and in the selection of securities included in them. There are indices that are calculated separately for stocks or bonds, and composite indices containing sets of stocks and bonds in various combinations.

With all the variety of stock indices, the most commonly used are indices with the following features:

• – are historically the most proven; calculated by generally recognized market participants (stock exchanges, information and rating agencies);
• – are based on the most significant securities.

The most significant stock indices are given in table. 3.7.

The huge number of indices that exist today in world markets is explained not only by differences in the methodology for their calculation, but also by the wide possibilities for forming a sample of shares for their calculation base (general market and industry indices, indices of large, medium and small capitalization companies, indices of value and growth stocks, etc.).

For the Russian stock market, these opportunities are still limited, but the number of domestic indices is no longer measured in dozens.

Main features of Russian stock indices:

• calculated using the weighted arithmetic average method;
• The list of enterprises whose information on securities transactions is used to calculate indices is very limited. Moreover, in this list the main role is played by no more than a dozen enterprises (Gazprom, Lukoil, MMC Norilsk Nickel, Sberbank of Russia OJSC, etc.), transactions with securities of which account for almost 100% of the volume of transactions on the stock market;
• – limited information base and similar formulas for calculating indices make them highly correlated with each other.

The main disadvantage of all Russian indices is their short history.

Table 3.7

The most significant stock indices

	Dow Jones stock index group (Dow Jones)	The calculation method is simple arithmetic average. Calculation began in 1884; according to modern methods - since 1928. The number of companies covered by the index is 65, including: industrial index -30, transport index -20, utility index -15
	Composite index New York Stock Exchange	Calculation method – weighted arithmetic average. Base – index value at the end of 1965. The index covers shares of all companies listed on the exchange (about 2000 companies)
	Index group Standard & Poor's (S&P )	Calculation method – weighted arithmetic average. Index value base for 1941 – 1943. Composite index covers 500 companies (S&P – 500)
	National Association of Securities Dealers Index Group (NASD) and NASDAQ systems	Calculation method – weighted arithmetic average. Base – index value NASD at the end of 1980. The composite index covers the shares of all companies listed on NASDAQ (more than 4,000 companies)
Great Britain	Index group FT-SE (FOOTSI)	Calculation method: FT-SE 30 – geometric mean method; FT-SE 100, etc. – using the weighted arithmetic mean method. Base – index value FT-SE 30 since 1935, remaining indices since 1984–1985. Index FT-SE 30 covers shares of the UK's top 30 companies
Germany	Index group DAX	Calculation method – weighted arithmetic average. Base – index value at the end of 1971. The most famous index DAX -30 covers 320 companies listed on the Frankfurt Stock Exchange
	Index group CAC And SBF	Calculation method – weighted arithmetic average. Base – index value at the end of 1987. The most famous index is SNF-40. General index CAC covers 250 companies listed on the French Stock Exchange
	Index NIKKEI-225	The calculation method is simple arithmetic average. Base – index value at the end of 1968. The index covers all shares listed on the Tokyo Stock Exchange (more than 1000 shares)
	MICEX Index	Represents an index of the most liquid shares Russian issuers, admitted to circulation in CJSC "MICEX Stock Exchange". In addition to the MICEX index, the exchange calculates the MICEX 10 index, which is defined as the arithmetic average change in the prices of the 10 most liquid shares admitted to circulation on the exchange, as well as a whole line of industry indices. From April 16, 2007, the MICEX expanded the basket of shares for calculating its main stock index from 21 to 30. Ordinary shares of Novatek, Severstal, NLMK, OGK-3, OGK-5, Seventh Continent, VolgaTelecom were added , Irkut and Bank of Moscow. The index presents the main sectors of the Russian economy.
		The oil and gas industry has a dominant position (53.54%), followed by banks (15.55%), metallurgical enterprises (11.62%), and electric power companies (10.11%). The remaining shares belong to industries information technologies, telecommunications, mechanical engineering, consumer and transport sectors. Among individual issuers, the most significant contribution to the dynamics of the indicator is made by ordinary shares of Gazprom (15%), Lukoil (15%) and Sberbank of Russia (13.68%). The new rules provide for further revision of the index twice a year - on October 15 and April 15. In addition, the MICEX will publish a quarterly list of shares – candidates for inclusion in the calculations. The indicator is used as the underlying asset for 20 mutual funds, the value of which is close to RUB 5.2 billion. Now managers will have to bring the investment structure in line with the new index
	RTS Index	Calculated daily but results trading session. The RTS Stock Exchange publishes the RTS Index, RTS-2, and RTS industry indices (Oil and Gas, Telecommunications, Metals and Mining, Industry, Consumer Goods and Retail). Official indicator – JSC "Russian Stock Exchange" trading system". It takes into account quotes of the 50 most capitalized Russian issuers. It is calculated during the trading session with a frequency of 1 time in 15 with an index of shares of issuers in the corresponding industry. These include: RTS - oil and gas, RTS - telecommunications, RTS - metals and mining, RTS - industrial, RTS - consumer goods and retail The number of shares in the industry index ranges from 10 to 15
	Index of second-tier shares (abbreviated name – RTS-2)	Indicator of trading in shares classified as the second echelon based on liquidity and capitalization
	Indexes AK&M	Calculated news agency AK&M, which is one of the first Russian market began to determine its own stock indices. The agency currently publishes 10 indices: Composite Index AK&M (42 issuers), index of shares of industrial enterprises (30 issuers), index of second-tier shares AK&M -2 (32 issuers), depositary receipts index and 6 industry indices
	Interfax/S& indices R	Represented by three indices: banking, non-ferrous metallurgy enterprises and oil and gas companies. The sample includes shares that have been listed on the stock market for at least 5 months

Indices are used as initial data for calculating parameters in a series economic models. For example, in the valuation model capital assets, which allows you to evaluate the behavior of individual shares in relation to the behavior of the stock market as a whole. Stock indices are used to obtain an overall picture of the stock market by its participants for various purposes, in particular: for economic analysis and forecasting stock prices; can serve as economic indicators of the state of the country’s economy as a whole; as tools for managing investment portfolios of securities.

Stock indices serve as the basis for trading derivative financial instruments based on these indices. For example, on stock indices, futures contracts (index futures) and option contracts (exchange options on indices) on stock indices, option contracts on index futures are formed. These instruments are used for speculative purposes, for hedging portfolio risks, as well as for arbitrage trading between the markets for index derivatives and securities included in the corresponding stock index.

We often hear that stock exchanges opened with indices rising by several percent. Or vice versa, the index fell by 50 points. The MICEX index rose by 24% over the year? And the RTS index fell by 2 times during the same time. What do all these words mean? How to understand whether the economy is growing or falling. Which investment climate in the country. In this article we will look at what stock indices are, what they mean and where and what they are used for.

History of the origin of indices

The very first index was invented by Edward Jones and Charles Dow. It included 12 of the largest enterprises in the United States. The index was calculated quite simply: the arithmetic mean of the composition of the companies included in it. And although since then the parameters for determining this index have undergone many changes, as well as the number of companies included in it, this moment it remains one of the most popular in the world. You've probably heard about him - DOW JONES Index.

What are stock indices

Let's imagine the picture. Hundreds, thousands, tens of thousands of shares of various companies are traded on the stock market. And every day some of them grow, others fall, and still others stagnate in a certain range. And how to determine the overall dynamics of the market? This is what stock indices are used for.

The essence of the index is as follows: Companies included in the index are selected based on a certain criterion and a certain value is derived based on certain calculations. This value or index value itself provides absolutely no information. The benefit of using indexes is the change in its values, which is taken either as a percentage or in points.

It is by the dynamics of changes in indices that one can judge whether the market is growing or falling. Those. if the index rises, it means that the shares of most of the companies included in it are growing, or according to at least those companies whose share in the index is large enough to pull the index in their direction grow.

Let’s say the MICEX index has a share of 4 largest companies(Gazprom, Sberbank, Magnit and Lukoil) - approximately 30%.

Using indices, you can measure various market parameters. There are industry indices that include only companies belonging to the same industry, for example, the financial sector, mechanical engineering, energy, etc. There are indices that include only the largest companies.

How are stock indices calculated?

The calculation of stock indices may involve various mechanisms. Initially it was just the arithmetic average. But such a calculation did not give an accurate idea of ​​the market movement. All companies differ from each other in capitalization, and each of them should influence the country's economy in different ways. Therefore, at the moment, other methods of forming indices are used: (simple and weighted average, arithmetic and geometric average, and others). Each index has its own calculation mechanism.

The calculation of stock indices is carried out either by rating agencies or stock exchange agencies. The name of the index basically consists of an abbreviation and sometimes a number indicating the number of companies included in the index.

The most popular stock indices in the world

Dow Jones— Dow Jones Industrial Average. Probably the most popular index in the world. The membership includes 30 of the largest US companies from various industries: finance, transport, consumer, food and industrial sectors. The index includes world-famous companies: Coca-Cola, IBM, Intel, MicroSoft, General Motors and others.

S&P 500— an index that includes the 500 largest US companies by capitalization. Therefore, the index itself can be used to judge how things are going in the country’s economy, since it affects all the main sectors of the country.

Nikkei 225— Japanese index, which includes 225 companies. The composition is reviewed annually. It includes such giants as Honda, Panasonic, Mazda and others. With a 99.9% probability, all Japanese brands that you know are included in the NIKKEI 225. Like the S&P 500, it fairly objectively reflects the state of the economy. The most important index in the Asian region.

DAX- German stock index, which includes the 30 most important companies in the country: Adidas, BMW, Henkel, Volkswagen and others.

FTSE 100— the most respected and quoted index on European exchanges. Among the 100 largest companies traded on the London Stock Exchange.

CAC 40- French stock index, which includes 40 largest companies traded on the Paris Stock Exchange: Renault, L'Oreal.

MICEX and RTS— 2 stock indices, including 50 of the most liquid and largest companies in Russia. The index includes such giants as Gazprom, Rosneft, Lukoil, Sberbank, Magnit, etc.

The calculation mechanism for Russian indices is absolutely the same. The difference is that the MICEX is calculated in rubles, and the RTS is calculated in dollars.

Selected tickers:

10Y T-Note INT Rates 30Y T-Bond INT Rates 5Y T-Note INT Rates AKNXA AKSPA ASX Australia BOVESPA Brazil BPSI CAC 40 CNYFIX CNYFIXME CNYRUBSFIX DAX 30 DJ Composite DJ Industrial DJ RUS Titans 10 DJ Telecommunications DJ Transport DJ Utilities EPSI EURFIX EURFIXME EURSFIX EURUSDFIX EURUSDFIXME EURUSDSFIX FTSE 100 FTSE/JSE Top40 GPBCBI2Y GPBCBI4Y Hang Seng IBEX Spain IMOEX MCFTR MCFTRN MCFTRR MCX BO 1W MCX BO 2W MCX BO ON MCX EQ 1W MCX EQ 2W MCX EQ ON MCXSM MEBCTR MEBCTRN ME BCTRR MECHTR MECHTRN MECHTRR MECNTR MECNTRN MECNTRR MEEUTR MEEUTRN MEEUTRR MEFNTR MEFNTRN MEFNTRR MEMMTR MEMMTRN MEMMTRR MEOGTR MEOGTRN MEOGTRR MESMTR MESMTRN MESMTRR METLTR METLTRN METLTRR METNTR METNTRN METNTRR MICEX MICEX 10 MICEX BMI MICEX CGS MICEX CHM MICEX FNL MICEX LC MICEX M&M MICEX MC MICEX MNF MICEX O& G MICEX PWR MICEX SC MICEX TLC MICEX TRN MICEX10INDEX MICEXBMI MICEXBORR1W MICEXBORR2W MICEXBORRON MICEXCBICP MICEXCBICP3Y MICEXCBICP5Y MICEXCBITR MICEXCBITR3Y MICEXCBITR5Y MICEXCGS MICEXCHM MICEXEQRR1W MICEXEQRR2W MICEXEQRRON MICEXFNL MICEXINDEXCF MICEXINNOV MICEXM&M MICEXMBICP MICEX MBIGP MICEXMBITR MICEXMNF MICEXO&G MICEXPWR MICEXSC MICEXTLC MICEXTRN MOEX10 MOEXBC MOEXBMI MOEXCH MOEXCN MOEXEU MOEXFN MOEXINN MOEXMM MOEXOG MOEXREPO MOEXREPO 1 week 12:30 MOEXREPO 1 week 19:00 MOEXREPO USD 12:30 MOEXREPO USD 19:00 MOEXREPO share 12:30 MOEXREPO share 19:00 MOEXREPO GSU 1 week 12:30 MOEXREPO GSU 1 week 19:00 MOEXREPO GSU 12:30 MOEXREPO GSU 19:00 MOEXREPO region 12:30 MOEXREPO region 19:00 MOEXREPO OFZ 12:30 MOEXREPO OFZ 19:00 MOEXREPO1W MOEXREPO1W region 12:30 MOEXREPO1W region 19:00 MOEXREPO1WE MOEXREPOE MOEXREPOEQ MOEXREPOEQE MOEXREPOUSD MOEXREPOUSD region 12:30 MOEXREPOUSD region 19 :00 MOEXREPOUSDE MOEXTL MOEXTN MRRT MRSV MXREPO MXREPO1W MXREPO1WE MXREPOE MXREPOEQ MXREPOEQE MXREPOUSD MXREPOUSDE MCXCBICP MCXCBICP3Y MCXCBICP5Y MCXCBIGP MCXCBIGP3Y MCXCBIGP5Y MCXCBITR MCXCBITR3Y MCXCBITR5Y NASDAQ 100 NASDAQ Comp Nikkei 225 OPSI RGBI RGBI-g RGBI-tr RGBITR RPGCC RPGCC KSU 12:30 RPGCC1W RPGCC1W KSU 12:30 RPGCC1WE RPGCC1WE KSU 19:00 RPGCCE RPGCCE KSU 19:00 RTS2 RTsch RTScr RTSeu RTSfn RTSI RTSin RTSmm RTSog RTSSIB RTSSM RTSSTD RTSSTDTR RTSSTDTRN RTSSTDTRR RTStn RTSTR RTSTRN RTSTRR RTSUSDCUR RTSVX RUABICP RUABITR RUBMI RUCBCP3Y RUCBCP5Y RUCBICP RUCBICP1Y RUCBICP3+ RUCBICPB RUCBICPB3Y RUCBICPBB RUCBICPBB3 RUCBICPBB3+ RUCBICPBB3Y RUCBICPBB5 RUCBICPBB5Y RUCBICPBBB RUCBICPBBB3+ RUCBICPBBB3Y RUCBICPBBB5Y RUCBICPL1 RUCBICPL2 RUCBICPL3 RUCBITR RUCBITR1Y RUCBITR3+ RUCBITRB RUCBITRB3Y RUCBITRBB RUCBITRBB3 RUCBITRBB3+ RUCBITRBB3Y RUCBITRBB5 RUCBITRBB5Y RUCBITRBBB RUCBITRBBB3+ RUCBITRBBB3Y RUCBITRBBB5Y RUCBITRL1 RUCBITRL2 RUCBITRL3 RUCBTR3Y RUCBTR5Y RUCHTR RUCHTRN RUCHTRR RUCNTR RUCNTRN RUCNTRR RUEU10 RUEUTR RUEUTRN RUEUTRR RUFNTR RUFNTRN RUFNTRR RUGBICP10Y RUGBICP1Y RUGBICP3Y RUGBICP5+ RUGBICP5Y RUGBITR10Y RUGBITR1Y RUGBITR3Y RUGBITR5+ RUGBITR5Y RUMBICP RUMBICP1Y RUMBICP3+ RUMBICP3Y RUM BICPBB RUMBICPBB3 RUMBICPBB3Y RUMBICPBBB RUMBICPBBB3+ RUMBICPBBB3Y RUMBICPL1 RUMBICPL3 RUMBITR RUMBITR1Y RUMBITR3+ RUMBITR3Y RUMBITRBB RUMBITRBB3 RUMBITRBB3Y RUMBITRBBB RUMBITRBBB3+ RUMBITRBBB3Y RUMBITRL1 RUMBITRL3 RUMMTR RUMMTRN RUMMTRR RUOGTR RUOGTRN RUOGTRR RUPAI RUPCI RUPMI RURCEN RURNW RURURL RURVOL RUSFAR RUSFAR1M RUSFAR1W RUSFAR2M RUSFAR2W RUSFAR3M RUSMTR RUSMTRN RUSMTRR RUTLTR RUTLTRN RUTLTRR RUTNTR RUTNTRN RUTNTRR RVI S&P 100 S&P 500 SBCBA SBCBB SBGBA SBMXA SBSPA SBSPB SENSEX India Shanghai Composite SRATE_CNY_ON SRATE_ED_ON SRATE_EUR_ON SRATE_USD_1M SRATE_USD_1W SRATE_USD_1Y SRATE_USD_2M SRATE_USD_2W SRATE_USD_3M SRATE_USD_6M SRATE_USD_9M SRATE_USD_ON TESTNAV USD Index USD1MFIX USD 1WFIX USD1YFIX USD2MFIX USD2WFIX USD3MFIX USD6MFIX USD9MFIX USDFIX USDFIXME USDSFIX UX UXAG VIX Volatility Index VTBBA Val.profitability of the state region. MICEX Index of second tier shares Index of broad market shares Index of the second tier of the Moscow Exchange Second tier index of the Moscow Exchange in dollars Index of blue chips of the Moscow Exchange State region index RGBI State region index RGBI TR State region index. MICEX State Regional Index MICEX-val Index of the state region. MICEX-sov.income Index of government bonds Index of government bonds-sov.income Index of corporate region MOEX CBICP Index of corporate region MOEX CBITR Index of corporate region MOEX CP 3 Index of corporate region MOEX CP 5 Index of corporate region MOEX TR 3 Index of corporate region MOEX TR 5 Index corporate bonds Corporate Bond Index - total income Moscow Exchange Mechanical Engineering Index Moscow Exchange Mechanical Engineering Index in dollars Metals and Mining Index Moscow Exchange Metals and Mining Index Moscow Exchange Metals and Mining Index in dollars MICEX Index MICEX Index - Innovations MICEX Index 10 MICEX Blue Chip Index MICEX Transport Index MICEX 10 Index Moscow Exchange Index Moscow Exchange Index 10 Moscow Exchange Blue Chip Index Moscow Exchange Government Bonds Index Moscow Exchange Government Bonds Price Moscow Exchange Innovations Index Moscow Exchange Corporate Bonds Index Moscow Exchange Corporate Bonds Index 3-5 Moscow Exchange Corporate Bonds Index MOEX 1 - 3 Price Moscow Exchange Corporate Bonds Index MOEX 1-3 Moscow Exchange Corporate Bonds Index Price Moscow Exchange Index of corporate bonds price 3-5 Moscow Exchange Metals and Mining Index Moscow Exchange Metals and Mining Index total return “gross” Moscow Exchange Metals and Mining Index total return “net” (at foreign tax rates) Moscow Exchange Metals and Total Mining Index profitability "net" (according to Russian tax rates) Moscow Exchange Municipal Bonds Index Moscow Exchange Municipal Bonds Price Index Moscow Exchange Oil and Gas Index Moscow Exchange Oil and Gas Total Return Index "gross" Moscow Exchange Oil and Gas Index Total Return "net" ( according to tax rates in.org-th) Moscow Exchange Oil and Gas Index of total profitability “net” (at tax rates ros.org-th) Moscow Exchange Index of consumption. sectors of total profitability “net” (at tax rates of the Russian org.) Moscow Exchange index will consume. total return sector “net” (according to foreign tax rates) Moscow Exchange Consumer Sector Index Moscow Exchange Consumer Sector Index Total Return “gross” Moscow Exchange Mid-Cap and Small Cap Total Return Index “gross” Moscow Exchange Mid-Cap Total Return Index “net” (at cash rates in.org) Moscow Exchange mid-capitalization index of total return "net" (at cash rates ros.org) Moscow Exchange Telecommunications Index Moscow Exchange Telecommunications Index total return "gross" Moscow Exchange Telecommunications Index total return "net" (according to tax rates of foreign org) Moscow Exchange Telecommunications Index of total return “net” (according to tax rates of Russian org) Index of Moscow Exchange of Transport Index of Moscow Exchange of Transport of total return “gross” Index of Moscow Exchange of Transport of total return “net” ( by tax rates in.org-th) Moscow Exchange Transport Index of total profitability “net” (by tax rates ros.org-th) Moscow Exchange Finance Index Moscow Exchange Finance Index of total profitability “gross” Moscow Exchange Finance Index of total profitability “net” (by tax rates in.org-th) Moscow Exchange Finance Index of total profitability “net” (at tax rates of Russian org-th) Index of Moscow Exchange of Chemistry and Petrochemistry Index of Moscow Exchange of Chemistry and Petrochemistry of total profitability “gross” Index of Moscow Exchange of Chemistry and Petrochemistry of total profitability “net” (according to foreign tax rates) Moscow Exchange Chemical and Petrochemical Index of total return “net” (according to Russian tax rates) Moscow Broad Market Index Moscow Exchange Electric Power Industry Index Moscow Exchange Electric Power Industry total return “gross” Moscow Exchange Electric Power Industry Index of total profitability "net" (at tax rates of foreign org.) Moscow Exchange Electric Power Industry Index of total profitability "net" (according to tax rates of Russian org.) Moon region index MOEX MBICP Moon region index MOEX MBITR Municipal index bonds Municipal bond index - total income Oil and gas index Moscow Exchange oil and gas index Moscow Exchange oil and gas index in dollars Consumer sector index Consumer goods and retail Moscow Exchange Index of consumer goods and retail trade of the Moscow Exchange in dollars RTS Index RTS index of the second tier RTS mechanical engineering index RTS metals and mining index RTS oil and gas index RTS consumer index. sectors RTS Index consumer index RTS telecommunications RTS transport index RTS finance index RTS chemicals and petrochemicals index RTS broad market index RTS electricity index telecommunications index Moscow Exchange telecommunications index Moscow Exchange telecommunications index in dollars Transport index Moscow Exchange transport index Moscow Exchange transport index in dollars Finance index Moscow Exchange finance index Moscow Exchange Finance Index in dollars Chemical and petrochemical index Moscow Exchange chemical and petrochemical index Moscow Exchange chemical and petrochemical index in dollars Moscow Exchange broad market index Moscow Exchange broad market index in dollars Electric power industry index Moscow Exchange electric power index Moscow Exchange electric power index in dollars Rate indicator REPO rate with the CCP of shares (calculation time 12:30) Repo rate indicator with the CCP of shares (calculation time 19:00) Repo rate indicator with the CCP of bonds (calculation time 12:30) Repo rate indicator with the CCP of bonds (calculation time 19:00) Repo rate indicator with a bond CCP 1 week (calculation time 12:30) Repo rate indicator with a bond CCP 1 week (calculation time 19:00) Repo rate indicator with a bond CCP US dollars (calculation time 12:30) Repo rate indicator with a CCP bonds US dollars (settlement time 19:00) MICEX base cap MICEX high cap MICEX innovations MICEX corp region MICEX corp region (val) MICEX corp region (val) 1-3 MICEX corp region (val) 3-5 MICEX corp region (val) / 3-5 MICEX corp region 1-3 MICEX corp region 3-5 MICEX mechanical engineering MICEX metallurgy MICEX Muni region MICEX Muni region (val) MICEX Muni region (price) MICEX oil and gas MICEX consumer sector MICEX REPO shares 1 day MICEX REPO shares 14 days MICEX REPO shares 7 days MICEX REPO region 1 day MICEX REPO region 14 days MICEX REPO region 7 days MICEX standard cap MICEX telecommunications MICEX transport MICEX finance MICEX chemistry and petrochemicals MICEX energy REPO with CCP shares 1 day REPO with CCP shares 1 day EOD REPO with CCP bonds 1 day REPO with CCP bonds 1 day EOD Effective yield of the state region. MICEX

Stock indices

The dynamics of the state of certain securities traded on the stock exchange are reflected by indicators such as stock indices.

A stock index is a composite indicator of price changes for a certain group of securities - the “index basket”.

By comparing the current index value with its previous values, you can evaluate the behavior of the market, its reaction to certain changes in the macroeconomic situation, various corporate events (mergers, acquisitions, stock splits, resignations and appointments of leading managers), and speculative processes.

Changes in the index over time are more important because they provide an indication of the overall direction of the market, even when stock prices within the index basket move in different directions. Depending on the sample of indicators, a stock index may reflect the behavior of a certain group of securities (or other assets) or the market (market sector) as a whole.

At the end of the name of stock indexes there may be a number indicating the number of joint stock companies on the basis of which the index is calculated: CAC 40, Nikkei 225, S&P 500.

By purchasing a particular stock index, investors form for themselves investment portfolio, consisting of shares of leading enterprises in a particular country. Thus, investors are insured against the “fall” of shares of individual enterprises, the shares of which can be purchased on the same stock exchange, and against the temporary decline of entire industries, which can be observed at the present time - indices are deprived of the possibility of bankruptcy, since they reflect the state of the economy of an entire country. Investors have the opportunity to further reduce the risk of their investments by purchasing indices from several different countries.

Another advantage of stock indices is that indices historically always grow: economies develop, capital grows, and indices essentially reflect their total value - therefore indices cannot help but grow. Naturally, they do not grow linearly, in accordance with the cyclical development of the world economy - growth is followed by recession, but then there will be new growth even higher than the previous one. Therefore, stock indices are especially good as a long-term investment tool.

Major stock indices of the world

Currently, there are over 2 thousand different stock indices in the world.

The history of stock indices began on July 3, 1884 in the United States, when the WallStreetJournal newspaper journalist, famous financier, and founder of Dow Jones & Company Charles Dow developed the first stock index, The Dow Jones Industrial Average. By studying the closing prices of stocks, Dow came to the conclusion that it was possible to create a kind of “barometer,” or stock index, that would allow investors to quantify the state of the market.

The first index, calculated in 1884, was average price 11 shares. It was called the "railroad index" because 9 of the 11 shares were issued railway companies. By 1896, Dow introduced the industrial average, which was defined as the arithmetic average of the prices of 12 stocks. In 1928, the number of stocks used to calculate the index was increased to 30. Last modified The index was introduced on November 1, 1999, when HomeDepot, Intel, Microsoft and SBC Communications replaced UnionCarbide, Goodyear Tire & Rubber, Sears and Chevron in the index.

NewYorkStockExchange updates and publishes the DJIA index every half hour throughout the trading day.

Its main competitor is the S&P 500 Index, also known as an indicator of the broad market. This index is calculated based on the capitalization of the 500 largest US companies, and their list is compiled rating agency Standard & Poor's. The third, most famous index characterizing the stock market of the New World is the Nasdaq Composite. This indicator is compiled from ordinary shares and similar financial instruments all companies traded on the NASDAQ stock exchange. The index's calculation base consists of quotes from more than 3,000 US and non-US corporations traded on the stock exchange. Historically, the index has been based on shares of high-tech companies.

The basis of the European stock market is made up of 3 financial centers - London, Paris and Frankfurt am Main. The main indicator of the British share market is the FTSE 100 Index (short for Financial Times Stock Exchange Index). The index has been calculated since January 3, 1984 from the level of 1000 points by the Financial Times agency. The index is based on the share prices of the 100 largest capitalized companies listed on the London Stock Exchange.

The key indicator of the German stock market is the DAX (derived from the German DeutscherAktienindex). The index has been calculated since July 1, 1988 by Deutsche Börse AG. The basis for the calculation is the stock quotes of the 30 largest companies. The index is weighted by market capitalization. Based on the results of trading in electronic system The Xetra DAX index is calculated and is almost identical to the DAX 30. However, the electronic session is longer, so closing prices can vary significantly.

The central indicator of the French stock market is the CAC 40 (short for French CotationAssistéeenContinu). The index is calculated on the basis of the 40 largest companies whose shares are traded on the EuronextParis exchange. The futures contract on this index is perhaps the most popular and traded futures contract worldwide.

The largest stock market center in the Asia-Pacific region is Japan and the Tokyo Stock Exchange. The main indicator of the site is the Nikkei 225. The index is calculated as a weighted average of quotes for the 225 most liquid stocks. The first publication of the index took place on September 7, 1950 by the Tokyo Stock Exchange under the name “TSE AdjustedStockPriceAverage”. Since 1970, the index has been calculated by the Japanese newspaper Nihon Keizai Shimbun. At the same time, the index changed its name to Nikkei - in honor of the abbreviated name of the newspaper.

For the Korean stock market, the central indicator is the KOSPI. The index is calculated using quotes from the country's 100 largest companies listed on the Korean Stock Exchange. The calculation of the indicator has been carried out since January 4, 1980 points, the starting point was the level of 1000 points.

Russian stock indices are young, as is the securities market. At the same time, their number is growing, and the calculation methodology is progressing. Their number is increasing primarily due to the emergence of industry indices. This is how stock exchanges now calculate indices of shares of oil, metallurgical, energy, and telecommunications companies. In the future, the emergence of shares in the banking (financial) sector.

Currently, the main indicators of the Russian stock market are the RTS and MICEX indices.

The RTS Index is calculated as a capitalization-weighted index of the most liquid shares of Russian issuers admitted to trading on stock exchange RTS. The index has been calculated since September 1, 1995. When calculating capitalization, the number of shares in free circulation is taken into account.

MICEX Index The main indicator of the Russian stock market - calculated from September 22, 1997 (base value 100 points) and is a price, market capitalization-weighted composite stock index, including the 30 most liquid shares of the largest and dynamically developing Russian issuers, types economic activity which belong to the main sectors of the economy represented on the MICEX Stock Exchange (MICEX SE).