Wednesday, December 16, 2009

Decoupling In Share of Global Stock Market Capitalization

Bespoke Invest provides us with an update of the market cap share of the global stock market pie for 2009.


According to Bespoke (bold emphasis mine),

``the US remains the biggest country with its stocks making up 29.61% of world market cap. This is more than three times Japan's representation in second place at 7.68%. At the start of the year, the US had 32.75% of world market cap, so its representation is down 9% in 2009 even though US equity markets are up.
At 7.27%, China overtook the UK in third place in 2009 and is closing in on Japan.

``Brazil's percent of world market cap increased the most in 2009 at 58.2%. Its weighting has gone from 1.84% to 2.92%. Indonesia, India, Australia, Turkey, China, Russia, and Taiwan have all seen their weightings increase by 25% or more this year. On the flip side, Japan has lost the most market share of the developed countries, declining from 10.28% to 7.68%."

Additional observations:

In terms of the top 20 in market cap:


- 8 comes from Asia, 8 from Europe, 2 from Latin America.


-Except for Sweden, Canada and UK, developed countries mainly have suffered from a decline in the share of market cap


Overall, developing nations have been taking most of the growth in the share of global stock market capitalization at the expense of the developed nations.

Yet if current trend persists, then most of the action is likely to be seen in developing nations.


Apparently, this also seems to validate the actions in the global IPO market [see
Decoupling In Global IPO Markets], crisis nothwithstanding.

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