Stocks traded, turnover ratio of domestic shares (%)
Countries By Stocks traded, turnover ratio of domestic shares (%)
Key points
- The turnover ratio of domestic shares (%), as defined, provides insights into the liquidity and trading activity of a country's stock market.
- Turkey has the highest turnover ratio among the listed countries, indicating a high level of trading and market activity in their domestic shares.
- Luxembourg, on the other hand, has the lowest turnover ratio, suggesting lower trading volume relative to market capitalization.
- The average turnover ratio across all countries is approximately 34.52%, showcasing the diversity in trading behaviors and market dynamics globally.
- A high turnover ratio can indicate a more dynamic and speculative market environment, while a low ratio may reflect a more stable and less actively traded market.
Official Definition of 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.
Importance
Stocks traded, turnover ratio of domestic shares (%) is a crucial macroeconomic statistic that reflects the level of activity in a country's stock market. The ratio is calculated by dividing the value of domestic shares traded by their market capitalization and then annualizing the value.
A low turnover ratio of domestic shares could indicate a lack of liquidity and investor activity in the stock market. This may suggest that investors are less interested or confident in the country's economic prospects, leading to subdued capital flows and potential difficulties in raising funds for businesses through the stock market.
On the other hand, a high turnover ratio of domestic shares signifies robust trading activity and market liquidity. A high ratio can attract foreign investors, enhance market efficiency, and indicate confidence in the country's economic stability and growth potential. It can also facilitate capital formation and investment in productive sectors, driving economic development.
Top 10 Countries by Stocks traded, turnover ratio of domestic shares (%)
Bottom 10 Countries by Stocks traded, turnover ratio of domestic shares (%)
Regions
Europe
Germany leads the selected countries in Stocks traded, turnover ratio of domestic shares with a value of 80.37%. This indicates a high level of trading activity relative to market capitalization. Switzerland and Spain follow closely with ratios of 65.33% and 64.46% respectively, showing significant market liquidity. On the other hand, Luxembourg has the lowest ratio at 0.09%, suggesting limited market participation. High turnover ratios can attract foreign investment but also pose risks of market volatility, while low ratios may indicate stability but hinder capital flow. This statistic's impact on development varies, as countries with high ratios may experience rapid market movements, influencing economic growth, while those with low ratios may struggle to attract investment and spur market activity.
Far East: East Asia, SE Asia, Australia
Stocks traded, turnover ratio of domestic shares (%) reflects the vibrancy of the stock markets in the selected countries. China leads with a high turnover ratio of 257.26%, indicating extensive trading activity compared to Japan's 94.33% and Thailand's 88.61%. While high turnover can signify market liquidity and investor confidence, it may also suggest speculative behavior and market volatility, as seen in Korea and Malaysia. On the other hand, low turnover ratios in the Philippines and Indonesia reflect less active markets, potentially signaling underdeveloped or restrained investment environments. This statistic's impact on a country's development lies in its ability to attract capital, drive economic growth, and indicate market maturity.
ASEAN
The turnover ratio of domestic shares reveals the trading activity relative to market capitalization for Indonesia (26.44%), Malaysia (56.95%), Philippines (12.00%), Thailand (88.61%), and Vietnam (30.57%). Thailand stands out with a significantly high turnover ratio, indicating a dynamic stock market. Malaysia also shows active trading, reflecting investor confidence. Indonesia and Vietnam have moderate turnover ratios, signaling stability. The Philippines lags behind, possibly indicating lower investor participation. High turnover may suggest market liquidity but also volatility, while low turnover implies underdeveloped markets. These dynamics impact capital flows, investor sentiment, and economic stability, with each country experiencing varying degrees of market efficiency and risk exposure.
Latin America
Stocks traded, turnover ratio of domestic shares (%) indicates the extent of trading activity relative to the market size for each country. Brazil stands out with a high ratio of 138.98%, reflecting a dynamic and liquid stock market with significant trading volume. Mexico follows with a ratio of 20.70%, indicating moderate trading activity. Countries like Argentina, Chile, and Colombia have ratios below 12%, suggesting lower trading volumes and potentially less investor interest. This statistic can signal market efficiency and investor confidence. While high turnover ratios can imply market depth and attractiveness, they also pose risks of volatility. Lower ratios may hint at market inefficiencies or less investor participation, impacting capital formation and economic growth differently in each country.
Middle East
Stocks traded, turnover ratio of domestic shares (%) is an essential macroeconomic statistic that reflects the liquidity and activity level of a country's stock market. Among the listed countries, Turkey stands out with a significantly high ratio of 365.7665%, indicating a high level of trading activity relative to its market capitalization. This high turnover ratio can imply a dynamic and speculative market environment, offering potential high returns but also posing higher risks for investors. In contrast, Cyprus has a lower ratio of 0.8305%, suggesting lower market activity and liquidity. For countries like Egypt and Saudi Arabia with ratios around 38.889% and 19.9835% respectively, there is a balanced level of trading activity. Higher turnover ratios may signify more efficient markets but also potentially more volatile trading conditions.
Rivals
Anglosphere v BRICS
The turnover ratio of domestic shares (% of market capitalization) varies significantly among the listed countries. China leads with a high ratio of 257.26%, indicating a highly active stock market. Brazil and India also show relatively high values, suggesting robust trading in domestic shares. Meanwhile, New Zealand has a notably lower ratio at 16.79%, potentially indicating a less dynamic stock market. High turnover ratios can indicate liquidity and efficiency in capital markets, providing opportunities for investment and growth. However, it can also lead to volatility and speculative bubbles. Lower ratios may suggest stability but could imply limited investment opportunities and slower economic development. Each country's ratio reflects its unique market characteristics and potential implications for economic growth and stability.
Israel v Iran
Iran has a relatively low Stocks traded turnover ratio of domestic shares at 11.45%, indicating lower market liquidity. In contrast, Israel boasts a significantly higher ratio of 39.93%, reflecting a more active domestic stock market. Iran's lower ratio may point to a less developed and potentially less efficient stock market compared to Israel. While a low turnover ratio can signify stability, it may also indicate limited investor interest or activity. In contrast, a high turnover ratio, as seen in Israel, suggests a dynamic market with potentially greater opportunities for investors but also heightened volatility. This statistic's impact on a country's development lies in its reflection of market vibrancy and attractiveness to investors, which can influence capital inflows, economic growth, and overall financial stability for Iran and Israel, shaping their respective economic landscapes.
Saudi Arabia v Iran
Iran and Saudi Arabia have varying levels of stocks traded, turnover ratio of domestic shares. Iran has a turnover ratio of 11.45%, while Saudi Arabia stands at 19.98%. This indicates a higher level of domestic shares being traded in Saudi Arabia compared to Iran relative to their market capitalization. Saudi Arabia's higher turnover ratio suggests a more active and liquid stock market compared to Iran. The advantage for Saudi Arabia lies in greater market activity and potentially increased investment opportunities. However, this high turnover can also introduce higher volatility and speculation risks. On the other hand, Iran's lower turnover ratio indicates a less active market, which could imply lower investor confidence or limited trading opportunities. This statistic's impact on development includes attracting foreign investments, fostering capital formation, and influencing overall market stability for both countries.
India v Pakistan
India has a high Stocks traded, turnover ratio of domestic shares at 74.95%, indicating a significant level of trading activity relative to market capitalization. In contrast, Pakistan has a lower ratio of 38.37%, suggesting less active trading of domestic shares in comparison. India's high turnover ratio could reflect a more liquid and dynamic stock market, offering investors better opportunities for profit but also potentially increasing market volatility. Conversely, Pakistan's lower ratio may indicate a more stable but less active market, potentially offering more long-term investment prospects. This statistic can impact a country's development by influencing investor confidence, capital flows, and overall market efficiency, with each country facing unique challenges and opportunities based on their respective turnover ratios.
Turkey v Greece
Stocks traded, turnover ratio of domestic shares (%) for Greece stands at 32.3275, while Turkey has a significantly higher ratio of 365.7665. Turkey's high turnover ratio indicates a more active and liquid stock market compared to Greece. The advantage for Turkey is the deep market activity and higher investor participation, allowing for more efficient price discovery and capital allocation. However, the high turnover ratio in Turkey may also reflect speculative behavior and increased market volatility, posing risks. For Greece, the lower ratio suggests a less active market which could hinder capital formation and investment opportunities. This statistic impacts the countries' development by influencing investor confidence, capital flow, and overall market stability differently for each country.
China v Japan
In terms of the Stocks traded, turnover ratio of domestic shares (%), China, People's Republic of stands at 257.26% while Japan's ratio is 94.33%. China's significantly higher ratio indicates a much more active domestic stock market compared to Japan. This suggests that China's stock market is more liquid and experiences a higher volume of trading activity relative to its market capitalization. While this reflects investor confidence and market dynamism in China, it also poses a higher risk of market volatility. On the other hand, Japan's lower ratio may indicate a more stable but potentially less attractive stock market for investors. The impact of this statistic on the countries' development lies in how efficiently capital is being allocated in the economy, with China potentially experiencing more rapid market movements and Japan possibly having a more stable investment environment.
FAQs
- Which country has the most Stocks traded, turnover ratio of domestic shares (%)?
Answer: Turkey has the highest turnover ratio of domestic shares at 365.7665. - Which country has the least Stocks traded, turnover ratio of domestic shares (%)?
Answer: Luxembourg has the lowest turnover ratio of domestic shares at 0.0929. - What is the average Stocks traded, turnover ratio of domestic shares (%) among the listed
countries?
Answer: The average turnover ratio of domestic shares among the listed countries is approximately 34.52%.