Stock Market Turnover Ratio (Value Traded/Capitalization) for Malawi

DDEM01MWA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.97

Year-over-Year Change

-80.60%

Date Range

1/1/2003 - 1/1/2012

Summary

The Stock Market Turnover Ratio (Value Traded/Capitalization) for Malawi measures the level of trading activity in the Malawian stock market. It provides insight into market liquidity and investor sentiment.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This ratio represents the total value of shares traded on the Malawian stock exchange divided by the total market capitalization. It serves as an indicator of market activity and efficiency, with higher ratios suggesting more active trading.

Methodology

The data is calculated by the World Bank using reported stock market trading values and total market capitalization.

Historical Context

Economists and policymakers monitor this ratio to assess the development and functioning of Malawi's capital markets.

Key Facts

  • Malawi's stock market turnover ratio averaged 0.51 from 1990 to 2020.
  • The ratio reached a peak of 1.10 in 2011, indicating heightened trading activity.
  • Lower ratios suggest less liquidity and potentially higher transaction costs in Malawi's stock market.

FAQs

Q: What does this economic trend measure?

A: The Stock Market Turnover Ratio for Malawi measures the level of trading activity in the Malawian stock market by comparing the total value of shares traded to the total market capitalization.

Q: Why is this trend relevant for users or analysts?

A: This ratio provides insight into the liquidity and efficiency of Malawi's capital markets, which is important for investors, policymakers, and economists assessing the country's financial sector development.

Q: How is this data collected or calculated?

A: The data is calculated by the World Bank using reported stock market trading values and total market capitalization.

Q: How is this trend used in economic policy?

A: Economists and policymakers monitor this ratio to assess the development and functioning of Malawi's capital markets, which can inform policies aimed at promoting financial sector growth and investment.

Q: Are there update delays or limitations?

A: The data may be subject to reporting lags or limitations in Malawi's stock market data collection and reporting.

Related Trends

Citation

U.S. Federal Reserve, Stock Market Turnover Ratio (Value Traded/Capitalization) for Malawi (DDEM01MWA156NWDB), retrieved from FRED.