Usually, we are aware about the details of only a few stock indices in the world. This post aims to widen your horizon. The table has enumerated some of the facts about 10 other countries’ stock index generally quoted, other than India.
| Country | Stock Index | Stock Exchange | No of Companies | Birth year | Index kind |
|---|---|---|---|---|---|
| Brazil | Bovespa | Sao Paulo Exchange | 56 | 1968 | capitalization-weighted |
| China | SE Shang composite | Shanghai Stock Exchange | (Unavailable) | 1990 | capitalization-weighted |
| France | CAC | Paris Stock Exchange | 40 | 1987 | capitalization-weighted |
| Germany | DAX | Frankfurt Stock Exchange | 30 | 1988 | capitalization-weighted |
| Hong Kong | Hang Seng Index | Hong Kong Stock Exchange | 33 | 1969 | (Unavailable) |
| India | Sensex | Bombay Stock Exchange | 30 | 1986 | capitalization-weighted |
| Japan | Nikkei | Tokyo Stock Exchange | 225 | 1949 | price-weighted |
| Korea | KOSPI | Korean Stock Exchange | 200 | 1964 | capitalization-weighted |
| Mexico | Mexbol | Mexican Stock Exchange | (Unavailable) | 1978 | capitalization-weighted |
| US | Nasdaq composite | Nasdaq Stock Market | 5540* | 1971 | capitalization-weighted |
| UK | FTSE | London Stock Exchange | 100 | 1984 | capitalization-weighted |
*Subject to change
Capitalization weighted: It means that firms with the largest market value have the greatest influence on the indices’ value.
Price weighted: A stock index in which each stock influences the index in proportion to its price per share. Stocks with a higher price will be given more weight and, therefore, will have a greater influence over the performance of the index.
NOTE: The number of companies refer to the number of companies included in the computation of the indices.
thanks for this useful info!
Cool post again…Great info mate
The number of companies refer to the number of companies included in the computation of the indices.’
i did not get this??
Interesting, I used to be a big fan of BSE index ever since i was a kid. I was totally clueless about the stock market those days but still I liked to follow it with the same interest for following sports stats. It was fun!
@SC An example may help. Even though, thousand + companies are listed in Bombay Stock Exchange only the stock price of 30 selected companies are taken into account when computing BSE index value.
SC,
The answer has been given. 🙂
jpbbabin,
So are you still a fan of BSE?
Ohh Yes.. I am still a loyal fan. I wanted BSE to beat Dow Jones, FTSE, Paris indecies and it delivered! So, I gotta reamain as a loyal fan:) Now, the eye is on Nikki.. We are gona trash it too. Long Live BSE!
Babin,
I just hope the small investors dont lose out. This irrational exuberance, which many a bourses experience, cant last too long.
Good one again… the recent trend seen is the consolidation of stock markets across the world.. i heard that NY stock exchange is in talks with BSE about some stake. Are stock exchanges run like a company? What benefits are there in such consolidation?
Yhanks you86594a4f6ccf032ef6847fa61edc077d