In this article we analyse the trends in market valuation, measured by domestic market capitalisation against his backdrop.
- In February 2018, for the first time since the beginning of 2017, we saw a month-on-month decline (2.5%) in domestic market capitalisation in all three regions, a reversal from the trend of a steady increase in global market capitalisation that started in October 2016.
- 55 of the 69 stock markets under review recorded a drop in the market capitalisation in February 2018 when compared to January 2018. The few exceptions to this trend were emerging economies that, against the global trend, recorded a 1 to 4% increase in market cap.
- The overall drop in market cap was due to a 4.2% and 4.9% decline in the Asia-Pacific and EMEA regions respectively with respect to January 2018. Despite the significant drop in benchmark indices in the Americas during the month, the overall market cap as at end February 2018 was slightly up (+0.2%) on January 2018, almost entirely driven by an uptick in the market cap of NYSE (up 2.3% on January 2018).