When reading newspapers, or reading online capital market news, the mass media every day must announce the position of increasing or decreasing foreign stock indexes on the previous day. For example:
American stocks closed higher in trading yesterday. The Dow Jones Index closed up +0.15% to 18,406 following rising US employment data. The S&P index also closed up +0.09% at 2,076.
The Shanghai Stock Exchange (SSE) rose to its highest level in six months.
What is the Dow Index? What is SSE? Before understanding it you must first know the list of world stock indexes. The stock index that I describe below is a stock index that is often used as a reference)
Information:
JCI = Usually referred to as the Composite Stock Price Index (JCI).
NYSE = Combined stock of all American issuers (the "JCI" of America).
DJI (Dow Jones Industrial Average) = 30 major US industrial stocks.
SP500 = Pool of 500 shares
Nasdaq =
In Indonesia, the JCI chart movement is often used as a reference for predicting the direction of the market the following day. However, did you know that in Indonesia itself, the stock index does not only consist of the JCI, but consists of many other indices. Just like America, the main stock exchange is the NYSE, but in America there are "broken" indices, such as the Dow Jones, SP500, Nasdaq and others. The following is an index on the Indonesian stock exchange.
In Indonesia, the most frequently used reference other than the JCI is the LQ45 Index. Why LQ45? Because LQ45 stocks consist of the 45 most liquid stocks on the Stock Exchange, and many of the LQ45 stocks are often market movers, such as BBRI, UNVR, GGRM, HMSP and others. Thus, the correlation between JCI and LQ45 shares is 99%. If LQ45 stocks strengthen, it is almost certain that the JCI will strengthen. However, because the JCI is a large index and reflects the movement of all issuers on the Stock Exchange, the JCI remains the focus of analysts, as well as future stock market movements.
Well, now you understand the term world stock index. Then, what is the need to understand the world stock index? To get the answer, please read the post: The Meaning of the World Stock Index for Stock Players.
