Recently, we heard news about Singapore Exchange (SGX) agreed to a US$8.3 billion takeover of Australia’s ASX Ltd. The merger will create Asia’s fourth-largest and World’s eight-largest stock exchange.
With the above news it is interesting to know the biggest stock exchange in the world. The following table shows the largest stock exchange around the world in terms of market capitalization as of September 2010. It also shows the number is listed companies as its performance for the past 1 year. It also interesting to know how is our local exchange, Bursa Malaysia perform.
When Petronas Chemicals Group (PCG) will make its debut on Bursa Malaysia on 26th November 2010, collectively Petronas group will account for over 10 per cent of Bursa Malaysia’s total market capitalisation and over 16 per cent of the FBM KLCI.
PCG debut on Bursa Malysia is the second initial public offering (IPO) by Petroliam Nasional Bhd this year. Last October, Petronas Rig builder, Malaysia Marine and Heavy Engineering Bhd (MHB), made its debut on Bursa Malaysia, jumped 19 per cent to RM4.51 in its first trading day.
With the inclusion of the PCG’s IPO and MHB, Petronas will have six companies listed on Bursa Malaysia, with a total market capitalisation of RM124 billion. The other four companies are MISC Bhd, Petronas Dagangan Bhd, Petronas Gas Bhd and KLCC Property Holdings Bhd
The Securities Commission Malaysia (SC), Bank Negara Malaysia and Bursa Malaysia recently introduced the Electronic Share Payment facility (e-share) for share transactions.
e-Share Payment is a service provided by all stockbrokers to pay the share sales proceeds directly into your bank account as well as providing an option for you to initiate payment for share purchases via electronic fund transfers. e-Share Payment eliminates the need to bank-in the cheques received from the sale of shares and also enable you to make online payments anytime from the comfort of your home.
Similar to eDividend launched in April this year, one of the main objectives of implementing e-Share Payment is to promote greater efficiency of the payment system which is aligned to the national agenda of migrating to electronic payment.
While the market never completely repeats itself, there are major similarities between past severe market dislocations and the current one. The past severe market dislocation was refering to 1937 Great Depression.
The table below outlines the major similarities between the two, comparing the Dow Jones Industrial Average for the 1937-1939 period to the SPDR S&P 500 exchange-traded fund (ETF), for the 2008-2010 period.
“Sell in May and go away” adage or also widely know as Halloween indicator, is the belief that the period from November to April has significantly stronger growth on average than the other months.
In such strategies, stocks are sold at the start of May and the proceeds held in bonds or a deposit account. Stocks are bought again in November, typically around Halloween.
How true is this to our stock market? The table below shows the historical data since 1988.