INDONESIA CAPITAL MARKET ( IDX)
The capital market in Indonesia has actually exist long before the Independence of Indonesia. The first stock exchange in Indonesia was established on 1912 in Batavia during the Dutch colonial era. At that time, the Exchange was established for the interest of the Dutch East Indies (VOC).
In 2007, Surabaya Stock Exchange was merged into Jakarta Stock Exchange. As a result, JSX changed its name into the Indonesia Stock Exchange.
The numbers of company listed in Indonesia Stock Exchange are 396.
There are five products that traded in Indonesia Stock Exchange:
1. Equities
2. Derivatives
3. Sharia product
4. Mutual funds
5. Bond
There are eight types of indexes that used by IDX:
- Individual index
- Sector Stock Price Index
3. Jakarta Composite Index
4. Kompas 100 Index
5. LQ 45 Index
6. Jakarta Islamic Index (JII)
7. Main Board Indices
8. Development Board Indices
THE DATA OF MARKET INDEX, MARKET CAPITALIZATION AND VOLUME TRANSACTON
2004 - 2008
| | AVERAGE | DAILY | TRANSACTION | | IHSG | | MARKET | |
| YEAR | VOLUME (Million) | VALUE (Rp Billion) | FREQUENCY (Thousand X) | HIGHER | LOWER | CLOSING | CAPITALIZATION (Rp Trillion) | NUMBER OF EMITEN |
| 2004 | 1,708.6 | 1,204.9 | 15.5 | 1,004.430 | 668.477 | 1,000.233 | 680 | 331 |
| 2005 | 1,653.8 | 1,670.8 | 16.5 | 1,192.203 | 994.770 | 1,162.635 | 801 | 336 |
| 2006 | 1,805.5 | 1,841.8 | 19.9 | 1,805.523 | 1,171.709 | 1,805.523 | 1,249 | 344 |
| 2007 | 4,225.8 | 4,268.9 | 48.2 | 2,810.962 | 1,678.044 | 2,745.826 | 1,988 | 383 |
| 2008 | 3,282.7 | 4,435.5 | 55.9 | 2,830.263 | 1,111.390 | 1,355.408 | 1,076 | 396 |
MALAYSIA CAPITAL MARKET (KLSE)
The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of the Kuala Lumpur Stock Exchange Berhad in the same year.
There are 267 company listed in Kuala Lumpur Stock Exchange.
There are five products that trades in KLSE
1. Equities
2. Derivatives
3. Exchange Traded Funds
4. Islamic Capital Market Product
5. Offshore
The market indices are:
1. Kuala Lumpur Composite Index (KLCI)
2. Industrial Index
3. Technology Index
4. Sectoral Indices, such as: Consumer product, construction, finance, industrial product, mining, plantation, property, and trading/services.
THE DATA OF MARKET INDEX, MARKET CAPITALIZATION AND VOLUME TRANSACTON 2004 – 2008
| Year | Market Capitalization (RM billion) | Market Index (Rm) | Volume Transaction (billion shares) |
| 2004 | 722 | 907 | 123 |
| 2005 | 695 | 900 | 119 |
| 2006 | 849 | 1,096 | 216 |
| 2007 | 1,106 | 1,455 | 384 |
| 2008 | 664 | 877 | 155 |
HONGKONG CAPITAL MARKET (HKEX)
The history of the securities exchange began formally in the late 19th century with the first establishment in 1891, though informal securities exchanges have been known to take place since 1861.The exchange has predominantly been the main exchange for Hong Kong despite co-existing with other exchanges at different point in time. After a series of complex mergers and acquisitions, HKSE remains to be the core. From 1947 to 1969 the exchange monopolized the market.
There are 749 companies are listed in Hongkong Stock Exchange.
There are 5 products that trade in HKEX:
1. Equity
2. Market access product
3. Exchange traded funds
4. Mutual funds
5. Bonds
The market indices:
1. Hang Seng Hong Kong Composite Index
2. Hang Seng HK Freefloat Index
3. Hang Seng HK 25
4. Hang Seng REIT Index
THE DATA OF MARKET INDEX, MARKET CAPITALIZATION AND VOLUME TRANSACTON 2004 – 2008
| Year | Market Index | Market Capitalization (HK$ mill) | Volume Transaction (Bill shares) |
| 2004 | 15740.43 | 66,716.07 | 51.68 |
| 2005 | 17025.45 | 66,603.74 | 105.94 |
| 2006 | 24378.76 | 88,324.86 | 225.53 |
| 2007 | 33708.99 | 161,080.97 | 310.38 |
| 2008 | 17891.16 | 45,164.18 | 269.50 |
COMPARISON AND CONCLUSION
We can compare the three capital market above with the risk and return principle. We calculate the return and the risk for each capital market. And then we can get the CV for each capital market. We gan get the amount of CV with risk divided by return.
We can conclude for the result of the CV. The lower CV is best to selected.
