The analysis of stock market development indicators: evidence from the ASEAN-5 equity markets

Abstract

This paper proposes indicators to assess the development of the stock markets in ASEAN-5 countries, namely Indonesia, Malaysia, the Philippines, Singapore and Thailand. The results show the distinctions among these equity markets. The indicators in this research separate these stock markets into two tiers. The results indicate that SGX, SET, and BM have higher level of development comparing to other stock markets in the same region. Their main strengths are in their accessibility. SGX has higher level of development in most aspects, specifically in size when measured by market capitalization. BM gains its advantage on access dimension. SET is outstanding in stability dimension. The other group is IDX and PSE. The latter equity markets need to improve in most aspects. These findings convey important messages to less-developed stock markets to establish the well-planned strategy and policy to build up the development before full participation of ASEAN Economic Community in 2015.