…but Asian market capitalization is growing faster.

The New York Stock Exchange (NYSE) and Nasdaq - also located in New York City, accounted for almost 50% of the 106-trillion-dollar global capital market in November 2023, according to the World Federation of Exchanges (WFE).

The market capitalization of the two U.S. stock exchanges constituted 24.12 trillion dollars and 22.06 trillion dollars, respectively. Both are home to the most valuable firms such as Alphabet, Meta, Amazon, Nvidia, and Apple, the London-based WFE said in its January 2024 capital markets assessment report that covers 80 major stock exchanges. 

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The combined share of NYSE and Nasdaq has grown somewhat on the background of the capital market contraction from 110 trillion as recorded last August. Since 2016, the NYSE has grown 35.1% while the Nasdaq has ballooned 189.3% in market cap.

The top ten exchanges identified by the WFE also count six from Asia, one from Europe, and one more from North America. In the August ranking, there were two European exchanges in the top ten; the London-based LSE Group dropped out since then as a consequence of the ongoing Brexit-related turmoil in the United Kingdom.

Over the last two decades, the UK stock market has fallen from 13% to less than 4% of the global share, with many companies migrating to the continent.

China is present in the top with three exchanges and India one. Like China, India’s economy has continued to expand, and so has its primary stock market: +133% since 2016.

As a matter of fact, if Goldman Sachs is right, the share of emerging markets in the global stock market capitalization will grow stronger and by 2050 will surpass America. Aside from economic growth, another reason is investors’ desire to diversify their portfolio in parts of the world where demographic explosion drives up consumption and business opportunities.

Here are the top 10 largest stock markets covering more than 96% of total stock market capitalization:

Credit: NewsCafe

Other notable stock exchanges are

In Americas (50.81 trillion dollars):

• B3 - Brasil Bolsa Balcão (881 billion dollars)
• Bolsa Mexicana de Valores (536 billion)

In Asia Pacific (32.41 trillion):

• Korea Exchange (1.86 trillion)
• Taiwan Stock Exchange (1.75 trillion)
• ASX Australian Securities Exchange (1.56 trillion)

In Europe, Middle East, and Africa (22.38 trillion):

• Deutsche Boerse AG (2.09 trillion)
• Nasdaq Nordic and Baltics (1.92 trillion)
• SIX Swiss Exchange (1.91 trillion)
• Tehran Stock Exchange (1.61 trillion)
• Johannesburg Stock Exchange (971 billion).

Also interesting from the investment point of view are the exchanges in the United Arab Emirates, Spain, and Russia, WFE data suggest.

The report also shows that the Americas’ share of listed companies stood at 19.6% as of November 2023, the Asia Pacific (APAC) region’s was 57.9%, while Europe, Middle East, and Africa (EMEA) accounted for 22.5%. By number of trades, the Americas grabbed 21.9%, APAC 69.5%, and EMEA 8.6%.

Of the total investment flow, 72% were already listed companies, and 28% were IPOs.

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