The combined index of the Jamaica stock exchange advanced by more than 2,700 points last week. Huh? What are points and what does it mean when a stock advances or declines by X amount of points?

The combined index of the jamaica stock exchange advanced by more than 2 000 points last week huh what are points and what does it mean when a stock advances or declines by x amount of points i’m khalil reynolds and it’s time for another episode of money mondays ja brought to you by proven wealth before we get started don’t forget to like this video subscribe to

This channel and turn on those post notifications also subscribe to my newsletter at and while you’re at it check out our other financial news on the website so when we’re talking about the performance of the stock market you often hear the term points have you ever stopped to wonder um what exactly is a point well on the jamaica stock exchange

The term points is used as a measurement of the performance of a particular index over a given period and if you’re wondering what an index is i have another video explaining that you can click the link up here or in the description box below it’s basically just a way to track the performance of a specific segment of the stock market now globally investors

Often cite the total point movement in a day’s session as an indication of the health of an index so it’s generally understood that a 1 000 point drop in the dow jones industrial average for example which tracks the stock prices of 30 big companies in the usa reflects a pretty steep decline an index is reported in points not dollars now the jsc also uses the

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Term points when referencing the movement of its indices among a group of stocks the jsc has nine indices indices being the plural of index one index two indices and these indices measure the performance of all the shares listed on that segment of the market are four major ones you have the main index you have the junior market index the u.s dollar index and

The combined index which measures the performance of shares on the main junior and u.s dollar market combined so when we say the combined index advanced or declined we’re talking about the average performance of all the stocks listed the combined index started this year at 508 000 points on january 2 but the index crashed to 337 000 points by march 25 after

Covet 19 hit jamaica the index has recovered slightly to about 369 000 points but it’s still a big leap from when the main index started at just 100 points in the 1960s when the jamaica stock exchange was established you’re probably wondering why aren’t indices reported in dollars wouldn’t it be easier to just say the market lost or gained x dollars rather than

Points well it’s because indices are dealing with several companies that are worth billions so points work as a kind of shorthand to indicate changes in the collective value so while the term points represents a change in value a single point when talking about indices does not have an actual value basically it’s easier to see the combined index advanced by 5

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000 points then the stocks of the companies on the combined index gain 95 million dollars or something like that so the jsc assigns a certain number of points to the indices at the start of trading and then at the end they calculate the overall movement the movement on indices is also often referred to or often reported as a percentage percentage loss or gain

Is calculated simply based on the value of the index at the start of trading and the value at the close of trading i personally prefer this method of reporting and it’s what you’ll hear us use on taking stock simply because it helps to give us context if i say the main market lost 200 points yesterday you might not understand you might not know what that means

You’ll probably figure it’s a bad thing because it’s a loss but you don’t know how bad because you have nothing to compare it to is 200 points a lot or a little if you’re new to this you’ll have no idea but if i say the market lost 10 percent of its value you know immediately whoa 10 that’s a lot now i hope i was able to break down the meaning of the term points

So that you can understand that’s it for this episode of money mondays ja brought to you by proven wealth follow them on instagram at we are proven and visit their website now here’s what’s coming up on taking stock scotiabank is closing two branches and converting six others to digital only how will you be affected we’ll find out from president

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And ceo of scotia group jamaica david noel and later the analysts swain on the latest market developments food distributor everything fresh has gone the go-ahead from the central bank of bahamas to acquire 60 stake in a company it took a bet on in 2019 and caribbean cement company results are out and it’s not what you might expect we’ll discuss as always thanks

For watching and here’s a reminder to like this video subscribe to this channel and share with your friends also subscribe to our newsletter at for the latest business news analysis and the transcript of this episode i’m khalil reynolds stay safe you

Transcribed from video
#MoneyMondaysJa – WHAT ARE POINTS ON THE STOCK EXCHANGE? By Kalilah Reynolds MedialiveBroadcastDetails{isLiveNowfalsestartTimestamp2020-11-03T000025+0000endTimestamp2020-11-03T000810+0000}