Stock exchanges are known to be the catalyst of the economic conditions in a certain state or the entire world. Stock exchanges trade the stocks of most enterprises representing every economic sector. Speaking about the blue chips, these are the stocks of big-scale corporations listed on several exchanges simultaneously.
Capitalization Secrets of Financial World
What is the key thing we should focus on when it comes to comparing stock exchanges? This is its market capitalization (or market cap for short). This indicator measures the total value of all the stocks traded on a certain exchange. If a certain stock is gaining value, this indicates the success of the company. The same holds true for a couple of stocks. However, the total market cap of an exchange is a more objective indicator in this case since a couple of stocks cannot influence the market cap of a big-scale exchange to a great extent if hundreds and thousands of other stocks are listed on this exchange as well, Masterforex-V Academy experts say.
However, if an exchange starts seeing its market cap growing rapidly, this indicates a major economic uptrend. And vice versa, a sharp drop in the market cap indicates an economic crisis.
Stock exchanges trade stocks, bonds, options, ETFs and other derivatives. They represent a number of industries like finances, transportation, insurance, oil production, IT, electronics, food and beverages, healthcare, banking, and so much more.
Knowing this kind of info is useful for traders. That's why Masterforex-V Academy decided to come up with an exclusive article revealing the market cap of the world's top 60 corporations in terms of their market cap. Having studied the list, you can figure out the bigger economic picture and anticipate a forthcoming economic crisis or uptrend, not to mention some other useful info like the list of countries where they invest in or withdraw their money from.
The first conclusion is that it's too premature to talk about a global economic crisis when over the first 2 months of the year, the total market cap of international stock exchanges increased by almost 11% up to 8,13 trillion dollars. These are strong numbers!
Market Cap Dynamic. Jan 1st - March 1st, 2019.
1. NYSE - (market cap - $23.055 trillion, + 11.49% in 2 months);
2. NASDAQ ($11.017, + 12.93%);
3. Tokyo Stock Exchange ($5.666, + 6.99%);
4. Shanghai Stock Exchange (SSE)($4.789, + 22.20%);
5. Euronext ($4.243, + 13.75%);
6. Hong-Kong Stock Exchange ($4.202, + 10.21%);
7. London Stock Exchange ($3.935, + 8.19%);
8. Shengzheng Stock Exchange (SZSE) ($3.061, + 27.28%);
9. Toronto Stock Exchange (TSX) ($2.235, + 15.38%);
10. Bombay Stock Exchange (India, $1.978, -5.04%);
11. Indian National Stock Exchange ($1.956, -4.86%);
12. Frankfurt Stock Exchange ($1.895, +7.98%);
13. Swedish Stock Exchange ($1.582, +9.78%);
14. Korean Stock Exchange ($1.514, +7.15%);
15. NASDAQ Nordic Exchange - OMX Group ($1.445, +9.30%);
The list of TOP 60 exchanges is in the screenshot below:
The growth dynamic can let us figure out which countries got the biggest investments within the first two months of the year.
TOP 5 exchanges in terms of market cap growth. January - February 2019.
1. SZSE: +27,28%, +656 billion dollars;
2. SSE: +22,20%, +870;
3. TSX: +15,38%, +298;
4. Euronext: +13,75%, +513;
5. NASDAQ: +12,93%, +1261.
The full list:
The biggest flight of capital:
Tunisian exchanges (-12.50%, - $1 billion.)
Oman (-5.56%, - $1 bn)
Bombay, India ( -5.04%, -$105 bn)
Indian National Stock Exchange (-4.86%, -$100 bn)
Qatar (-2.45%, -$4 bn)
Morocco (-1.64%, - $1 bn).
Also, the stats show that investors showed little to no interest in the stock exchanges of Ukraine, Kazakhstan, Malta, Cyprus , Slovenia, Lebanon, Panama, Ireland, Mauritius.
The weakest growth was seen in the markets of Chile (+1.6%), UAE (+2.15%), Argentina (+2.22%), Poland (+3.13%), Nigeria (+3.23%), Mexico (+3.64%), Singapore (+4.66%), Malaysia (+4.77%), Romania (5%), Croatia (+5%), New Zealand (+6.98%), Japan (+6.99%).
