The World Federation of Exchanges (“WFE”), a world industry group representing exchanges and CCPs, published its 2017 Full Year Market Highlights report in February.
According to the report, 2017 ended on a powerful note for stock markets all over the world.
Benchmark indices all over the world hit record highs, setting the scene for market activity in 2017.
Market valuations rose sharply and the variety of public offerings increased; nonetheless, secondary market activity was subdued and the worth and volume of shares traded and investment flows by listed firms declined in comparison with 2016.
Other highlights from the report included:
1. Global market capitalization increased by 22.6% in comparison with 2016
2. The value of stock turnover and the variety of transactions decreased by 2.6% and 5.1%, respectively, in comparison with 2016.
3. The number of latest listings and investment flows through IPOs increased by 47.8% and 50.6%, respectively, in comparison with 2016
4. Trading volume in exchange-traded derivatives (ETDs) ended the 12 months up 0.6% in comparison with 2016, mainly attributable to a rise in trading volume in single-stock options, stock index options and rate of interest futures.
Finally, it’s value mentioning a very powerful trends of 2017 in comparison with 2016, which concerned the whole capitalization of the domestic market.
At the tip of 2017, a rise of twenty-two.6% was recorded in comparison with the tip of 2016, reaching a brand new record level of USD 87.1 trillion. This is the best value within the analyzed five-year period in global and regional terms.
This increase was driven by a rise in domestic market capitalization in all regions: within the Americas by 17.8%, within the Asia-Pacific region by 27.6% and within the Europe, Middle East and Africa region by 24.3% in comparison with 2016.
In Southeast Asia, these are specifically “Domestic Market Capitalization”:
Note: Market capitalization data includes:
(1) shares of domestic firms listed on the stock exchange;
(2) shares of foreign firms traded exclusively on the regulated market IN stock exchange, i.e. a foreign company Is not listed on another stock exchange;
(3) common and preferred shares of domestic firms; and;
(4) shares without voting rights.
The increase in domestic market capitalization occurred against the backdrop of a synchronized global recovery in GDP growth, continued accommodative monetary policy in lots of regions, low inflation, low market volatility, rising commodity prices and high corporate profits.
