It’s no secret that 2017 has been a good year for stocks. Led by the biggest stock exchanges in the world, many of them have hit highs not seen in several years or even decades, and some have even gone on to post all-time record highs.
What Is A Stock Exchange?
By definition, a stock exchange acts as a regulated marketplace connecting buyers and sellers of stocks and other types of financial securities including bonds and warrants.
Stocks are initially listed on an exchange through an Initial Public Offering (IPO), which allows private companies to raise capital to support their business plans. They can also subsequently issue more stocks or other types of financial securities to raise more capital.
A stock exchange also ensures liquidity of the stocks on it. People can buy, sell and trade the stocks listed on a stock exchange. The larger the stock exchange, the greater exposure and liquidity it typically offers.
Many countries have their own stock exchanges, including Singapore’s SGX. Here’s a look at the top 10 stock exchanges in the world and how they’ve fared so far in 2017.
The Top 10 Stock Exchange In The World By Market Capitalisation
#1 New York Stock Exchange (NYSE)
At a market capitalisation of over US$30 trillion and with over 2,400 companies listed on its board, the NYSE represents nearly 40% of the total market value in the world.
At the start of January 2017, the NYSE was trading at 11,154.35 points. Today, it’s trading at 12,366.43 points. This is a 10.9%, or 1,212.08 points, increase since the start of the year.
Home to approximately 3,900 companies, NASDAQ-listed companies have a combined market capitalisation of nearly US$12 trillion. This is close to 9% of the global market capitalisation of listed companies.
Since the beginning of the year, NASDAQ has experienced an 23.4%, or 1,272.18 points, growth from 5,429.08 points to 6,701.26 points.
#3 London Stock Exchange (LSE)
Tracing its history back to 1698, the LSE has one of the most diverse exchanges with close to 2,500 companies, from more than 90 countries quoted across its markets, with a market capitalisation of close to £4.4 trillion (US$5.8 trillion).
In 2017 alone, it has gained close to 5.7%, translating to an increase of 221.0 points to 4,112.49 points today compared to 3,891.54 points at the start of the year.
#4 Tokyo Stock Exchange (TSE)
With over 3,575 companies listed on the TSE, its combined market capitalisation stands at close to US$5.5 trillion.
The TOPIX, Tokyo Price Index, which is a proxy for the TSE stands at 1,770.84 points, a 13.9%, or 216.4 points, increase since the start of 2017.
#5 Shanghai Stock Exchange (SSE)
The SSE has 1,366 listed companies on its board with a combined market value of RMB33.6 trillion (US$5.05 trillion).
Since the start of 2017, the SSE has increased by 8.1%, or 254.42 points, from 3,135.92 points to 3,390.34 points.
Euronext is a leading pan-European exchange in the Eurozone with nearly 1,300 listed issuers worth close to €3.6 (US$4.18 trillion) in market capitalisation.
#7 Hong Kong Stock Exchange (HKeX)
With a combined market capitalisation of HKD32.30 trillion (US$4.14 trillion), the HKeX has close to 2,500 listed companies trading on its bourse.
In 2017 alone, it has increased from 3,011.03 points to 3,937.37 points. This translates into a 30.8%, or 926.3 points, gain for the year.
#8 Shenzhen Stock Exchange (SZSE)
The SZSE has close to 2,056 companies listed on its marketplace worth close to RMB24.28 trillion (US$3.65 trillion).
In addition, the SZSE Component Index fund, a proxy for the stock market has performed well during 2017. It added 0.13 points, or 11.8%, during the year to 1.423 points from 1.1 points.
#9 Toronto Stock Exchange (TSX)
With about 1,487 companies listed on its board, the TSX has a quoted market value of close to C$2.3 trillion (US$1.8 trillion).
The TSX has risen to 15,953.51 points from 15,403.03 points at the start of the year. This is close to 3.6% or 550.48 points.
#10 Bombay Stock Exchange (BSE)
Founded in 1852, the BSE is Asia’s oldest stock exchange. It has a market capitalisation of Rs1,43,82,306 Crores (US$2.22 trillion).
Since the start of 2017, the BSE 500 has increased from 11,072.57 points to 14,494.19 points. This translates to roughly a 30.9% growth that investors in the Indian market could have achieved.
How The Singapore Market, And SGX, Fared Compared To This
Firstly, the returns calculated are based on indexes, many of which investors could have tapped into, rather than the actual growth of the stock exchanges.
In Singapore, the Singapore Exchange (SGX) has a market capitalisation of close to S$0.91 trillion (US$0.67 trillion) with over 767 companies listed. The FTSE ST All-Share Index, an index covering all the shares listed on SGX, has grown 16.1%, or 114.19 points, in 2017 so far.
Bonds and Fixed Income