If you have participated in the stock market or are about to invest in this market, you must have heard phrases such as HNX-Index, HNX, HNX-Index, etc. So HNX-Index. - What is Index ? How does this indicator reflect the economic situation? What does it mean and how is it calculated? Please follow the sharing below of PHS to better understand.

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What is HNX-Index?

HNX-Index is the index of all stocks traded at the Hanoi Stock Exchange (HNX). The HNX-Index can be called HASTC Index, because formerly the Hanoi Stock Exchange was also known as the Hanoi Stock Exchange Center (HASTC), operating since 2005, then there was a decision. Transformation No. 01/2009/QD-TTg of the Prime Minister.

Meaning of HNX-Index

Based on the indices of HNX-Index, investors, researchers on stocks and the economic market can get a lot of information such as:

1. Show the performance of the stock market

As analyzed above, HNX Index is a stock price index on the Hanoi Stock Exchange. That means it represents the percentage of market capitalization at the moment

or market capitalization at the time of issue . As a result, it shows the performance of the stock market.

2. Describe investor sentiment

The buying and selling of stocks is the expression of the trend, the psychology of investors, it fluctuates and changes continuously. It is the change of HNX-Index or VN-Index, VN30 Index that shows investors' sentiment.

3. Shows the changes and shifts of the economy

If in the past, the crude industry dominated, but now, the structure of the economy has a great contribution of industries, services, urban infrastructure and even exports ....All will be shown in HNX-Index. Therefore, this is an indicator of economic movement.

4. Describe the recession of the economy

When the economy develops, businesses do well, the amount of money circulating in enterprises is large, stable and growing all help stocks to be interested and have more transactions and vice versa. HNX-Index's decline is a signal that industries are declining and the economy is in recession.

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Formula for calculating HNX-Index

Specifically, the HNX-Index is calculated on the principle of market capitalization with the ratio of freely transferable shares of all stocks listed and traded on the HNX having the freely transferable ratio. greater than or equal to 5%.

With the new calculation method, the HNX-Index will more accurately reflect the trading movements in the listed stock market, eliminating the influence of stocks with large listing volume but low free transfer rate. .

HNX-Index = (Current market capitalization)/ (Base market capitalization) x 100

Inside:

  • Market value = Market price of shares x number of shares listed
  • The reference price on the HNX the next day is a weighted average of the exercise prices of the prices traded by the method of continuous order matching in the last 15 minutes of the previous session.

Conclusion

For stock investors, tracking market indexes is extremely important. Hopefully the above article of PHS will help you to understand what the HNX-Index is, the meaning and how to calculate this index. In addition, there are basic concepts surrounding the HNX-Index. Market indexes as well as price lists will be updated continuously, requiring investors to keep a close eye on them. Don't forget to follow PHS to update your knowledge about financial investment - useful securities.