In this article, we will look into the 50 countries with biggest financial markets in the world. If you want to skip our detailed analysis, you can go directly to the 10 Countries with Biggest Financial Markets in the World.
Market Pullback After Strong Q1
According to the World Federation of Exchanges (WFE), the global stock market is valued at $111.85 trillion, as of February 2024. There are 54,625 domestic and foreign companies listed in the global stock market. Some of the largest stock exchanges in the world include the New York Stock Exchange, NASDAQ, and TMX, among others. The stock market experienced a strong Q1 with many indices reaching new highs. On April 1, Forbes reported that the S&P 500 registered total returns of 3.2%, whereas the Dow Jones and NASDAQ grew by 6.1% and 9.3% in the first quarter of 2024. The growth was majorly driven by sectors including consumer cyclical, consumer defensive, and technology.
However, the strong performance streak was interrupted recently by the market pullback in the US, the country with the biggest stock market in the world. On April 22, Reuters reported that the S&P 500 is facing its first major pullback in 6 months. The index has declined by over 5%, compared to its peak on March 28. Reuters cited an analysis by Bank of America, which states that since 1929, the index has had an average of three pullbacks of 5% or more every year. A study by Trust Advisor Services cited in the news report indicated that the index has witnessed an average maximum drop of 11%, each time it gained 10% or higher in the first quarter. Out of 11 such instances, the S&P 500 has closed the year higher 10 times, since 1950. You can also check out the richest countries during the great depression.
“The Market is Trading Above its Implied Fair Value”
On April 22, the Chief Investment Strategist at iCapital, Anastasia Amoroso, appeared in an interview on CNBC to talk about the current market outlook, interest rates, and potential opportunities for investors. The strategist emphasized the current investor sentiment and highlighted that the market quickly went from being overbought to oversold. However, the market is exactly where the Fed desires it to be, aligning with interest rate expectations and growth projections, said Amoroso. She said that the market is trading above its implied fair value by some models. She further emphasized that the current 10-year treasury yield suggests that the equity market is at a good value. She also recommended that investors should gradually buy during the declines. When asked about the sudden bearish sentiment, which resurrected after a 5% pullback, despite a 30% increase in the S&P 500 over the last 18 months, Amoroso said:
“Yeah, I think a lot of people were optimistic on the markets because of the rate cuts. You know, that was a big narrative going into the year. But, you know, there’s another reason to be optimistic about the equity markets. Even without the rate cuts, you have resilient growth. We get GDP growth for the first quarter this weekend. We’re looking for about two and a half percent increase in the fourth quarter GDP. That’s a reason to be optimistic on the market. But for those, you know, previously in the bullish camp, they were looking for rate cuts and that’s why they flipped.”
Potentially Undervalued Stocks Amidst the Pullback
While the market is currently experiencing a pullback, there might be some buying opportunities for investors. We recently covered some of the top ridiculously cheap stocks to buy and hold for long term, which included Stellantis N.V. (NYSE:STLA), Apollo Global Management, Inc. (NYSE:APO), and Coterra Energy Inc. (NYSE:CTRA). Let’s discuss them in detail.
Stellantis N.V. (NYSE:STLA) is a leading automaker, that owns brands including Fiat, Maserati, and Chrysler, among others. On April 11, Morgan Stanley analyst Harald Hendrikse raised his price target on the stock from $26 to $30.4 and maintained an overweight rating. Over the past 3 months, Stellantis N.V. (NYSE:STLA) has received a buy rating from 14 Wall Street analysts. The average price target of the stock is $30.53, which represents an upside of 7.88% from its share price on April 22.
On April 16, the investment company, Miller Value Partners released its first quarter 2024 investor letter which also included Stellantis N.V. (NYSE:STLA). The letter said:
“Stellantis N.V. (NYSE:STLA) was another top performer during the quarter. The auto manufacturer reported full-year 2023 (FY23) revenue of €189.5B ($204.5B), +5.5% year-over-year (Y/Y), ahead of consensus of €189.3B ($204.3B), and Adjusted earnings per share (EPS) of €6.42 ($6.93), +7.2% Y/Y, ahead of consensus of €5.88 ($6.34). FY23 industrial free cash flow (FCF) was €12.9B ($13.9B), or a FCF/Enterprise Value (EV) yield of 21.9%. After returning €6.6B ($7.1B) to shareholders via dividends and buybacks in 2023, the company’s board of directors proposed an annual dividend of €1.55/share ($1.67), or a 5.9% yield, and management announced a new buyback program of €3.0B ($3.2B), or ~3.6% of the company’s market cap.”
Coterra Energy Inc. (NYSE:CTRA) is a leading oil and gas company, specializing in the development, exploration, and production of oil, natural gas, and natural gas liquids. On April 19, Piper Sandler analyst Mark Lear raised his price target from $35 to $37 on Coterra Energy Inc. (NYSE:CTRA) and maintained an overweight rating. Over the past 3 months, the stock has received Buy ratings from 17 Wall Street analysts. It has an average forecast of $32.59 and a high price target of $37. In the fourth quarter of 2023, 42 hedge funds held stakes in the company, worth $686.261 million.
Apollo Global Management, Inc. (NYSE:APO) is another undervalued stock with a 13.17% upside potential based on average analyst price targets as of April 22. Over the past 3 months, 9 analysts have recommended a buy rating on the stock. The average price forecast of the stock is $120.92 and it has a high price target of $137. The leading private equity and investment firm was also mentioned in the third quarter 2023 investor letter of Ave Maria. Here are some comments from the letter:
“Apollo Global Management, Inc. (NYSE:APO) was added to the Fund this quarter. Historically, Apollo has excelled in traditional leveraged buyout and leveraged loan markets, establishing itself as a premier buyout firm. In 2009, Apollo launched Athene, a retirement services provider specializing in fixed-rate annuities. Athene quickly ascended to become the leading fixed-rate annuity provider in the US, providing Apollo with nearly a half a trillion dollars of perpetual capital to invest. Apollo predominantly invests this capital in investment-grade private credit, sourcing investment opportunities through 16 origination platforms. These platforms deploy capital into aircraft financing, fleet financing, senior debt, non-agency home loans, and other assets. The investment grade credit market is vast – estimated at $40 trillion. By leveraging Athene’s liability origination capabilities and the asset origination capabilities of Apollo’s various platforms, Apollo is poised to grow to over $1 trillion in AUM over the next five years.
We are confident that these three alternative investment managers will grow their respective businesses substantially over the next five years. This should provide ample growth in their stock prices and, consequently, the Fund’s positions in them.”
With this context, let’s have a look at the 50 countries with the biggest financial markets in the world. You can also look at 20 Countries with the Most Domestically Listed Companies in the World.
A wide angle shot of Wall Street, capturing the hustle and bustle of the city and its financial markets.
Methodology
In order to compile a list of the countries with the biggest financial markets in the world, we sourced our data from the Insider Monkey Global Financial Development Index. Our index focuses on the overall size and development of countries’ domestic equity markets and domestic debt markets. For measuring the size of equity markets, we relied on country-wise total market capitalization of domestically listed companies. For measuring the size of debt markets, we first looked for standardized data for the dollar value of domestic debt markets. Due to data limitations, we decided to instead use the external debt position of countries as a proxy for the size and sophistication of the fixed-income markets in each country. To view our index methodology which highlights all our sources and calculations, you can take a look at the Insider Monkey Global Financial Development Index.
Please note that a lower index value represents a country with a bigger financial market since it ranked higher on both our indicators, i.e. had a bigger equity market and a larger debt position. The countries are sorted in descending order of their index values.
50 Countries with Biggest Financial Markets in the World
50. Kazakhstan
Market Capitalization of Publicly Listed Companies: $46.00 billion
External Debt: $162 billion
Insider Monkey Score: 0.432
Kazakhstan had a stock market valuation of $46 billion in 2022. It is one of the countries with the biggest financial markets in the world.
49. Peru
Market Capitalization of Publicly Listed Companies: $102.70 billion
External Debt: $94 billion
Insider Monkey Score: 0.427
Peru is ranked 49th on our list. Its stock market is valued at $102.7 billion, as of March 2024.
48. Czech Republic
Market Capitalization of Publicly Listed Companies: $30.40 billion
External Debt: $206 billion
Insider Monkey Score: 0.418
The Czech Republic had 21 publicly listed companies, valued at $30.40 billion in 2022. It is ranked 48th on our list.
47. Colombia
Market Capitalization of Publicly Listed Companies: $42.40 billion
External Debt: $193.6 billion
Insider Monkey Score: 0.417
Colombia ranks among the countries with the biggest financial markets in the world. The country’s stock market is valued at $42.4 billion, as of March 29, 2024.
46. Hungary
Market Capitalization of Publicly Listed Companies: $27.91 billion
External Debt: $297.8 billion
Insider Monkey Score: 0.416
Hungary ranks 46th on our list. Its publicly listed companies are valued at $27.91 billion.
45. Philippines
Market Capitalization of Publicly Listed Companies: $183.47 billion
External Debt: $125.4 billion
Insider Monkey Score: 0.392
The Philippines is ranked 45th on our list. It has a stock market value of $183.47 billion.
44. Vietnam
Market Capitalization of Publicly Listed Companies: $170.15 billion
External Debt: $144.8 billion
Insider Monkey Score: 0.389
Vietnam’s stock market was valued at $170.15 billion in 2022. It is ranked 44th on our list.
43. Argentina
Market Capitalization of Publicly Listed Companies: $52.94 billion
External Debt: $285.9 billion
Insider Monkey Score: 0.367
Argentina is one of the countries with the biggest financial markets in the world. The market cap of the publicly listed companies in the country was $52.94 billion in 2022.
42. New Zealand
Market Capitalization of Publicly Listed Companies: $86.87 billion
External Debt: $223.6 billion
Insider Monkey Score: 0.365
New Zealand is ranked 42nd on our list of the countries with the biggest financial markets in the world.
41. South Africa
Market Capitalization of Publicly Listed Companies: $283.82 billion
External Debt: $158.1 billion
Insider Monkey Score: 0.353
South Africa has 96 publicly listed companies, valued at $283.82 billion as of March. It is ranked 41st on our list.
40. Israel
Market Capitalization of Publicly Listed Companies: $301.36 billion
External Debt: $154.7 billion
Insider Monkey Score: 0.353
Israel’s stock market is valued at $301.36 billion, as of March 2024. It is ranked among the countries with the biggest financial markets in the world.
39. Chile
Market Capitalization of Publicly Listed Companies: $117.83 billion
External Debt: $240.9 billion
Insider Monkey Score: 0.347
As of March, Chile has 33 domestically listed companies with a total valuation of $117.83 billion.
38. Portugal
Market Capitalization of Publicly Listed Companies: $75.56 billion
External Debt: $441.3 billion
Insider Monkey Score: 0.330
Portugal’s stock market is valued at $75.56 billion, as of March 2024.
37. Qatar
Market Capitalization of Publicly Listed Companies: $147.38 billion
External Debt: $290.1 billion
Insider Monkey Score: 0.322
Qatar’s publicly listed companies are valued at $147.38 billion, as of March 2024.
36. Greece
Market Capitalization of Publicly Listed Companies: $84.66 billion
External Debt: $610.8 billion
Insider Monkey Score: 0.309
Greece is ranked 36th on our list of the countries with the biggest financial markets in the world.
35. Thailand
Market Capitalization of Publicly Listed Companies: $420.95 billion
External Debt: $193.2 billion
Insider Monkey Score: 0.307
Thailand has a market capitalization of $420.95 billion, as of March 2024. It is ranked 35th on our list of the countries with the biggest financial markets in the world.
34. Poland
Market Capitalization of Publicly Listed Companies: $171.07 billion
External Debt: $426.9 billion
Insider Monkey Score: 0.288
Poland ranks 34th on our list. Its stock market is valued at $171.07 billion, as of March 2024.
33. Malaysia
Market Capitalization of Publicly Listed Companies: $333.06 billion
External Debt: $270.6 billion
Insider Monkey Score: 0.283
Malaysia’s publicly listed domestic companies are worth $333.06 billion, as of March 2024.
32. Austria
Market Capitalization of Publicly Listed Companies: $120.80 billion
External Debt: $784.1billion
Insider Monkey Score: 0.262
Austria is ranked among the countries with the biggest financial markets in the world.
31. Turkey
Market Capitalization of Publicly Listed Companies: $273.87 billion
External Debt: $500 billion
Insider Monkey Score: 0.262
Turkey has a stock market cap of $273.87 billion, as of March. It is ranked 31st on our list.
30. Luxembourg
Market Capitalization of Publicly Listed Companies: $42.53 billion
External Debt: $3.7 trillion
Insider Monkey Score: 0.255
Luxembourg is ranked 30th on our list. Its market cap is $42.53 billion, as of March.
29. Finland
Market Capitalization of Publicly Listed Companies: $244.34 billion
External Debt: $659.8 billion
Insider Monkey Score: 0.251
Finland has 45 publicly listed companies, valued at $244.34 billion as of March 2024.
28. Russia
Market Capitalization of Publicly Listed Companies: $530.10 billion
External Debt: $316.8 billion
Insider Monkey Score: 0.241
Russia’s stock market was worth $530.10 billion in 2022. It is ranked 28th on our list.
27. United Arab Emirates
Market Capitalization of Publicly Listed Companies: $551.73 billion
External Debt: $389.2 billion
Insider Monkey Score: 0.233
The United Arab Emirates is ranked 27th on our list. As of March, its 60 domestically listed companies are valued at $551.73 billion.
26. Indonesia
Market Capitalization of Publicly Listed Companies: $578.43 billion
External Debt: $407.1 billion
Insider Monkey Score: 0.224
Indonesia has 147 publicly listed companies, valued at $578.43 billion. It ranks 26th on our list.
25. Mexico
Market Capitalization of Publicly Listed Companies: $482.71 billion
External Debt: $593.9 billion
Insider Monkey Score: 0.218
Mexico is ranked among the countries with the biggest financial markets in the world. The market capitalization of its publicly listed companies is $482.71 billion, as of March 2024
24. Taiwan
Market Capitalization of Publicly Listed Companies: $2.13 trillion
External Debt: $206.5 billion
Insider Monkey Score: 0.217
Taiwan is ranked 24th on our list. As of March, Taiwan has 913 publicly listed companies, worth $2.13 trillion.
23. Norway
Market Capitalization of Publicly Listed Companies: $341.12 billion
External Debt: $768.8 billion
Insider Monkey Score: 0.207
Norway is one of the countries with the biggest financial markets in the world. Its stock market capitalization is $341.12 billion, as of March 2024.
22. Belgium
Market Capitalization of Publicly Listed Companies: $332.06 billion
External Debt: $1.53 trillion
Insider Monkey Score: 0.204
Belgium is placed 22nd on our list of the countries with the biggest financial markets.
21. Denmark
Market Capitalization of Publicly Listed Companies: $796.44 billion
External Debt: $539.6 billion
Insider Monkey Score: 0.194
Denmark is ranked 21st on our list with a stock market capitalization of $796.44 billion.
20. Ireland
Market Capitalization of Publicly Listed Companies: $245.42 billion
External Debt: $3.14 trillion
Insider Monkey Score: 0.187
Ranked 20th on our list, Ireland’s stock market is worth $245.42 billion as of March 2024.
19. Singapore
Market Capitalization of Publicly Listed Companies: $446.13 billion
External Debt: $1.99 trillion
Insider Monkey Score: 0.174
Singapore has a major financial market and is ranked 19th on our list. With 85 publicly listed companies, its stock market is worth $446.13 billion as of March 2024.
18. Saudi Arabia
Market Capitalization of Publicly Listed Companies: $2.87 trillion
External Debt: $299.7 billion
Insider Monkey Score: 0.168
Saudi Arabia ranks 18th on our list. Its stock market is valued at $2.87 trillion, as of March 2024
17. Brazil
Market Capitalization of Publicly Listed Companies: $910.97 billion
External Debt: $732.6 billion
Insider Monkey Score: 0.166
Brazil has 200 publicly listed companies, valued at $910.97 billion as of March 2024. It is one of the countries with the biggest financial markets in the world
16. Hong Kong
Market Capitalization of Publicly Listed Companies: $661.13 billion
External Debt: $1.8 trillion
Insider Monkey Score: 0.155
Hong Kong is ranked among the countries with the biggest financial markets in the world. It has a stock market valuation of $661.13 billion, as of March.
15. Sweden
Market Capitalization of Publicly Listed Companies: $972.81 billion
External Debt: $1.04 trillion
Insider Monkey Score: 0.145
Sweden ranks 15th on our list. It has a stock market valuation of $972.81 billion, as of March.
14. South Korea
Market Capitalization of Publicly Listed Companies: $1.84 trillion
External Debt: $663.6 billion
Insider Monkey Score: 0.143
South Korea is one of the countries with the biggest financial markets in the world. It has a stock market valuation of $1.84 trillion, as of March 2024.
13. Spain
Market Capitalization of Publicly Listed Companies: $765.36 billion
External Debt: $2.6 trillion
Insider Monkey Score: 0.135
Spain is ranked 13th on our list. As of March, the country has 70 publicly listed companies worth $765.36 billion.
12. Australia
Market Capitalization of Publicly Listed Companies: $1.65 trillion
External Debt: $1.6 trillion
Insider Monkey Score: 0.123
Australia is ranked 12th on our list of countries with the biggest financial markets in the world. As of March 2024, its stock market is valued at $1.65 trillion.
11. Italy
Market Capitalization of Publicly Listed Companies: $956.41 billion
External Debt: $2.8 trillion
Insider Monkey Score: 0.117
Italy is ranked 11th on our list of the countries with the biggest financial markets in the world. As of March, its stock market valuation is $956.41 billion.
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Disclosure. None. 50 Countries with Biggest Financial Markets in the World is originally published on Insider Monkey.