BY: SEEISO MATLANYANE, HEAD OF EQUITIES AT PRESCIENT INVESTMENT MANAGEMENT

Stock market indices have long been used to convey the performance of the stock market and their importance has increased with the increasing universe of passive investments that track different indices. Popular examples of indices that investors monitor include the S&P 500 index in the US, the Eurostoxx 600 Index in Europe, or the Nikkei 225 Index in Japan, all considered benchmark measures for investment performance.