Global sector indixes, Financial Management

Global Sector Indixes

Morgan Stanley Capital International (MSCI) measures the International and National performance. It launched All Country Sectors on January 30, 2001. MSCI All Country Sectors offers immediate access to index levels, index returns, market caps, market weights and index valuation ratios and is available on either a monthly or daily basis. Its sectors include Developed Markets Sectors, Emerging Markets Sectors and Asia Pacific Sectors.

MSCI Indices

These indices are of prime importance for fund managers for better asset allocation and performance measurement. All these indices do not cover the total capitalization of the respective region. Since 1987, The Financial Times has published the FT-Actuaries World Index with the help of Goldman Sachs and WM company. Several national indices are provided along with the industrial and regional indices. The most important are World index, Europe index and Pacific index. The FT-Actuaries indices have a comprehensive coverage of 2400 stocks around the world, which cover 70% of each market's capitalization. Morgan Stanley Composite Index and FT-Actuaries indices are published daily and do not consider dividends. Other international indices are Salomon/Russel Global Equity Index, Union de Banque Suisses (UBS) and Dow Jones International Indices.

FTSE Global Sector Index Series

The FTSE Global Sector Index Series comprises 13 key global sector indices from the thirty-five sectors of the FTSE Global Classification System (GCS). Each Global Sector Index aims to represent between 80-90% of the full market capitalization of the eligible universe.

These highly tradable indices support a wide range of OTC (over-the-counter) products. They are ideal tools for sector-based investment and, in conjunction with the broader based FTSE All-World sector indices are employed by fund managers worldwide as a wide-ranging portfolio analysis tool. Domestic Sector Indices

In any national market, domestic investors prefer the national indices for judging the movements of the national stock markets. Most of these indices are broad-based covering companies from several industries with proper market value weightage. In these indices, each company is assigned a weight proportional to its market capitalization.

Market value indices are true market portfolio indices as they provide returns commensurate with the market movement. But this is not applicable to the equal weightage indices like Dow Jones or the Japanese Nikkei. The Dow Jones Industrial Average contains 30 stocks with the weights assigned in proportion to their market price. Local indices are preferable to the international indices due to the following reasons:

  • Most of the local indices have been used for several years.
  • Domestic indices represent a comprehensive coverage of the national listed stocks.
  • Local indices are readily available with the daily stock price.

 

Posted Date: 9/11/2012 5:00:25 AM | Location : United States







Related Discussions:- Global sector indixes, Assignment Help, Ask Question on Global sector indixes, Get Answer, Expert's Help, Global sector indixes Discussions

Write discussion on Global sector indixes
Your posts are moderated
Related Questions
Why does money have time value? Positive interest rates point toward that money has time value.  When one person lets one more borrow money, the first person needs compensation

Discounted cash flow analysis is the term employ to describe the technique whereby the value of future cash flows is discounted back to a present value so that the monetary values

Financial Management Initial Disclosures During the process of discussion and negotiation with the client with regard to the financial affairs and the manner of operations of the

Revenues Revenues are the gross income received before any deductions for discounts, expenses, returns, and so on. It is also called sales in most organization. A much less c

In 1952, to provide equilibrium between assets and liabilities of insurance companies, Frank Redington, an English actuary, proposed interest rate immunization te

Define the role of cash and of earnings while a corporation is deciding how much, if any, cash dividends to pay to common stockholders. In the long-run earnings are essential to

Question: (a) A stock currently sells for $80 and a put option with an exercise price of $80 currently sells for $2. Find the percentage gain to an investor in the common stock

Which formula would you use to solve for the payment required for a car loan if you know the interest rate, length of the loan, and the borrowed amount?  Explain. To answer for

Q. Show External business risk? External risk is the result of operating conditions imposed on the firm by circumstances beyond its control. The external environments in which

Explain the term - Timing of Benefits A more significant technical objection to profit maximisation, as a guide to financial decision making, is that it ignores the differen