Capital Markets and Investment Decision Making by Raj S. Dhankar

Author:Raj S. Dhankar
Language: eng
Format: epub, pdf
ISBN: 9788132237488
Publisher: Springer India

Some Background Information on Stock Markets in South Asia

The stock markets in South Asia have developed remarkably over the last two decades, although there is much heterogeneity among the markets in terms of size, liquidity, profitability, etc. However, there are concerted efforts on the part of the authorities concerned to improve the functioning of the markets. All the markets have adopted automated trading system. Trading in all markets is done in dematerialized form and on rolling settlement basis. The regulatory front has also been strengthened with the establishment of securities exchange boards/commissions in each of the countries which oversees and regulates the activities of the stock exchanges. Presently, there are 24, 1 and 4 stock exchanges in India, Sri Lanka and Pakistan, respectively.

However, there is still a long way to go. The growth of the markets can be assessed from Table 10.1, which represents the various statistics for the year 2003, in respect of different markets along with that of US and UK. The size of the market in terms of market capitalization is small for all the three countries, as compared to UK and USA. Liquidity as measured by value traded to GDP and value of shares to market capitalization, also does not show much impressive performance. However, in terms of number of companies listed, India stands second only to the USA, while the rest of the countries are way behind. Interestingly, the returns in these markets have been impressive and hence provide an immense opportunity to investors, both local and foreign to increase their potential gains.Table 10.1Comparative statistics of stock markets of three South Asian countries along with that of UK and USA for the year 2003

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.