Five largest bourses list 450+ new companies despite recession fears

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Leading stock exchanges are listing new firms as investors anticipate a return to normalcy, despite the world economy staring at a possible recession as inflation continues to wreak havoc across the markets.

Data compiled by Finbold indicates that the five leading global stock exchanges cumulatively listed 459 companies between January and September this year.

U.S.-based NASDAQ, with a market capitalisation of $18.59 trln, has listed the highest number of companies at 174, representing a growth of 4.81% to 3,788.

At the same time, the New York Stock Exchange (NYSE), the world’s largest stock exchange with a capitalisation of $24.19 trln, listed 144 companies to 2,578 or a growth of 5.91%.

In Asia, the Shanghai Stock Exchange added the third highest number of companies at 106, representing a growth of 5.25%. The Chinese exchange has 2,123 companies with a capitalisation of $6.87 trln.

Japan Exchange Group, with a market cap of $5.29 trln, ranks fourth, having listed 32 companies, from 3,795 to 3,827 or 0.84% growth.

Elsewhere, Europe’s Euronext listed only three companies over the period. The exchange, with $5.62 trln in market cap, has a total of 1,981 companies.

As of January 2022, the five stock exchanges hosted 13,838 companies. The total number of listed companies grew 3.31% to 14,297 as of September 2022.

Recession impact

The Finbold study delved into the current market conditions likely to impact the stock market.

“The increase in the number of publicly listed companies appears to defy the ongoing economic condition impacted by both emerging and residual factors,” the research found.

“Notably, the global economy is facing geopolitical tensions, stock market volatility, growing concerns regarding commodities, the impact of inflation, and continued interest rate hikes. These conditions have culminated in widespread fears that a recession might be imminent.”

Overall, the Finbold report said that stock market’s recovery will likely depend on how central banks contain inflation and bring stability to the economy. With stabilisation, companies that have paused their IPO activity might start listing.