Africa Eastern and Southern | Stocks traded, turnover ratio of domestic shares (%)
Turnover ratio is the value of domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12. Development relevance: Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information which can lower transaction costs and subsequently improve resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations. Limitations and exceptions: Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Only domestic shares are used in order to be consistent with domestic market capitalization. Statistical concept and methodology: Turnover ratio is the value of electronic order book (EOB) domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12, according to the following formula: (Monthly EOB domestic shares traded / Month-end domestic market capitalization) x 12.
Publisher
The World Bank
Origin
Africa Eastern and Southern
Records
63
Source
Africa Eastern and Southern | Stocks traded, turnover ratio of domestic shares (%)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976 3.77155834
1977 3.47791544
1978 3.53532628
1979 4.72805636
1980 9.29321653
1981 3.47687688
1982 3.33191604
1983 4.12717313
1984 3.43215391
1985 4.38252984
1986 5.05073314
1987 7.13259126
1988 3.49119445
1989 5.08750493
1990 6.02461249
1991 4.37385188
1992 4.41501093
1993 3.64562399
1994 5.16661247
1995 5.71545888
1996 10.99165192
1997 18.34479029
1998 31.45351341
1999 27.50315934
2000 34.23721972
2001 23.69216645
2002 25.8487492
2003 18.53047315
2004 18.65064273
2005 19.98250986
2006 24.02498595
2007 30.54028224
2008 41.0251062
2009 26.61532084
2010 29.44260235
2011 28.14985986
2012 24.80943858
2013 24.45206444
2014 26.11154384
2015 31.55309453
2016 38.07220404
2017 25.57153583
2018 33.81969662
2019 32.78285603
2020 27.18522485
2021
2022
Africa Eastern and Southern | Stocks traded, turnover ratio of domestic shares (%)
Turnover ratio is the value of domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12. Development relevance: Stock market size can be measured in various ways, and each may produce a different ranking of countries. The development of an economy's financial markets is closely related to its overall development. Well-functioning financial systems provide good and easily accessible information which can lower transaction costs and subsequently improve resource allocation and boosts economic growth. Both banking systems and stock markets enhance growth, the main factor in poverty reduction. At low levels of economic development commercial banks tend to dominate the financial system, while at higher levels domestic stock markets tend to become more active and efficient relative to domestic banks. Open economies with sound macroeconomic policies, good legal systems, and shareholder protection attract capital and therefore have larger financial markets. Recent research on stock market development shows that modern communications technology and increased financial integration have resulted in more cross-border capital flows, a stronger presence of financial firms around the world, and the migration of stock exchange activities to international exchanges. Many firms in emerging markets now cross-list on international exchanges, which provides them with lower cost capital and more liquidity-traded shares. However, this also means that exchanges in emerging markets may not have enough financial activity to sustain them, putting pressure on them to rethink their operations. Limitations and exceptions: Data cover measures of size (market capitalization, number of listed domestic companies) and liquidity (value of shares traded as a percentage of gross domestic product, value of shares traded as a percentage of market capitalization). The comparability of such data across countries may be limited by conceptual and statistical weaknesses, such as inaccurate reporting and differences in accounting standards. Only domestic shares are used in order to be consistent with domestic market capitalization. Statistical concept and methodology: Turnover ratio is the value of electronic order book (EOB) domestic shares traded divided by their market capitalization. The value is annualized by multiplying the monthly average by 12, according to the following formula: (Monthly EOB domestic shares traded / Month-end domestic market capitalization) x 12.
Publisher
The World Bank
Origin
Africa Eastern and Southern
Records
63
Source