Chapter II evolution of stock exchanges
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1.1.httpsshodhganga.inflibnet.ac.inbitstream10603451064chapter 2.pdf
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- Fig: 2.1 Stock Market Capitalization as a Percentage of GDP in the World (1913-1999)
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The Leading 100 Stock Exchanges in the World in 1914 Place No Examples Place No Examples Europe
50 - North America 14 -
4 Vienna,
Canada 3 Montreal Belgium 2 Brussels USA 11
New York. Bulgaria 1 Sofia
Latin America 9 - Denmark 1 Copenhagen Argentina 1 Buenos Aires France 5 Paris Brazil 2 Rio de Janeiro Germany 6 Berlin Chile 1 Santiago Greece 1 Athens Cuba 1 Havana Italy 4 Milan Mexico 1 Mexico City Netherlands 2 Amsterdam Peru 1 Lima Norway 1 Oslo Uruguay 1 Montevideo Portugal 1 Lisbon Venezuela 1 Caracas Rumania 1 Bucharest Asia 11
- Russian Empire 4 St. Petersburg Burma 1 Rangoon Serbia 1 Belgrade Ceylon 1 Colombo Spain 2 Madrid China 1 Shanghai Sweden 1 Stockholm India 2 Bombay Switzerland 3 Zurich Indonesia 1 Batavia United Kingdom 10 London Japan 3
Africa 7 - Malaya 1 Singapore Egypt 1 Alexandria Turkey 1 Istanbul Morocco 1 Casablanca Australasia 9 - Mozambique 1 Beira Australia 6 Sydney Rhodesia 1 Bulawayo New Zealand 3 Wellington S. Africa 3 Johannesburg Total 100 -
Source: Michie, C.R. (1999), “The London Stock Exchange: A History”, New York and Oxford: Oxford University Press.
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Over time, stock markets have symbolized of the development of commerce in the modern world. They became very important to the world‘s economy and their role in the international financial system witnessed a significant increase. As seen in the Table 2.2 and Figure 2.1 stock market capitalization as a percentage of GDP in the world has been increased during the period 1913-1999.
World
56% 65%
55% 97%
UK 109%
192% 199%
225% France
78% 19%
16% 117%
Germany 45%
18% 16%
67% USA
41% 56%
66% 152%
Japan 49%
181% 23%
95% India
2% 7%
6% 46%
Source: Michie, C.R. (1999), “The London Stock Exchange: A History”, New York and Oxford: Oxford University Press.
Source: Michie, C.R. (1999), “The London Stock Exchange: A History”, New York and Oxford: Oxford University Press. 0 % 50 % 100 % 150
% 200
% 250
% World
UK France Germany USA
Japan India
56% 109%
78% 45%
41% 49%
2% 97%
225% 117%
67% 152%
95% 46%
1913 1999
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Since the 1990s onwards many developing nations have begun to establish and develop their stock exchanges and form more advanced financial markets.
For example, in Africa, many countries set up stock exchanges as a precondition for the introduction of market economies under the structural adjustment programs propagated by the international monetary institutions and to facilitate the privatization of state owned enterprises (Kibuthu, 2005). Currently, Africa has 20 securities exchanges, twelve of which began operations in the 1990s. The most apparent feature of these African stock exchanges is their small size, both in relative and absolute terms. Table 2.3 shows the number of stock exchanges and listed companies in Africa at the end of 2006. Also, most Arab countries began to establish stock exchanges since 1990. At present all 22 Arab countries have stock exchange except Yemen, Somalia, Djibouti, Comoros Island and Mauretania. Table 2.3 Number of Stock Exchanges and Listed Companies in Africa 2006 Number Stock Exchange No of listed companies 1 Algeria 2 2 Botswana 17 3 Cote d‘Ivoire (BRVM) 40 4 Egypt 603 5 Ghana 33 6 Kenya 44 7 Malawi 11 8 Mauritius 41 9 Morocco 63 10
Mozambique 2 11 Namibia 33
12 Nigeria
204 13
South Africa 401
14 Sudan
52 15
Swaziland 6 16 Tanzania 8 17 Tunisia 48
18 Uganda (Composite) 8 19
Zambia 18
20 Zimbabwe 80 Source: African Union (2008) ―The Feasibility Study on the Establishment of the Pan African Stock Exchange.‖ Report, Department of Economic Affairs.
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Emerging equity markets have experienced more rapid growth, taking on an increasingly larger share of this global boom. For example, the market capitalization of the emerging market economies has more than doubled over the past decade. The share of emerging markets in the world market capitalization has increased from 9.35 percent at the end of 1997 to 19.3 percent in 2006 (GIH, 2008) (Figure 2.2). At the same time, the market capitalization of emerging market countries has grown from less than $2 trillion in 1995 to over $5 trillion in 2008.
Stock exchanges in the Middle East countries and other emerging economies became very important to the world‘s economy and their role in the international financial system witnessed a significant increase. As shown in Figure 2.3, it can be noticed that emerging equity markets in the Middle East and Africa have been the focus of much attention recently from international investors; as a result, the weighting of these markets in the Standard and Poor/International Finance Corporation Global Composite Index(S&P/IFCGCI) surged substantially from below 2 percent in 1990 to around 24 percent in 2005 , given the importance of these markets to the global financial system. Download 1.12 Mb. Do'stlaringiz bilan baham: 
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