Business Finance Report: Global Stock Markets and ASX Company Analysis

This report provides a comprehensive overview of the global stock market, focusing on the top ten share markets by market capitalization in 2019, including NYSE, NASDAQ, and Japan Exchange. It then delves into the Australian Stock Exchange (ASX), detailing its historical evolution, industry categorization, and its importance in the Australian economy. The report further analyzes three ASX-listed companies: Accent Group Limited, Adairs Limited, and AHA life Holdings Limited, examining their market capitalization and price performance, and comparing their volatility to the industry and market. The report concludes with a summary of the key findings and insights from the analysis of the stock markets and the selected companies.

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Top Ten Share Market Overview...........................................................................................2
Australian Stock Exchange....................................................................................................4
Overview of Accent Group Limited......................................................................................5
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

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Introduction
Stock market is the place, where one can sell, buy or engage in trading the stocks at
any business day. It is known as stock exchange. The stocks allow person to own the share of
the public corporation. The stock’s price is based on earnings of corporation. The price of
stock goes up, when company does well. The stock’s price also rises when economy is doing
well. There are various companies that gives the payment of dividend each year to
stockholders, which helps in providing extra value (Bekaert and Hoerova 2014). Hence, this
report will include the discussion on overview of top ten share markets in world during 2019,
which is based on market capitalization. Further, discussion will be on overview of
Australian stock exchanges including industry categorization, historical evolution and its
importance in economy. Lastly, discussion will be on overview of three ASX companies,
which are Accent Group Limited, Adairs Limited and Ahalife Holdings Limited.
Discussion
Top Ten Share Market Overview
The top ten share markets around world during 2019, which is based on market
capitalization are described below:
1. NYSE
New Year Stock Exchange is American stock exchange that is largest stock exchange in
the world in the terms of market cap of listed organizations. This exchange is based on 11
Wall Street in New York. The total market capitalization of NYSE is $23.21 trillion and total
number of listed firms in this particular exchange is 2400.
2. NASDAQ

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NASDAQ is the American stock exchange that is located in the New York City at One
Liberty Piaza. This particular stock exchange was founded in the year 1971 and it is
considered to be the global electronic marketplace that buys and sells benchmark and
securities index for United States technological stocks. NASDAQ is having the market
capitalization of $11.22trillion and total average monthly trading volume is $1.26trillion
(Adam, Marcet and Nicolini 2016).
3. Japan Exchange
The foundation of Japan exchange was in 1898 and this exchange is top most stock exchange
in world. This exchange is having 2,300 listed company. The market capitalization of Japan
exchange is $5.61 trillion. Nikkei 225 is the benchmark index of Japan Stock Exchange that
consists of largest companies such as Sony and Suzuki.
4. Shanghai Stock Exchange-
Shanghai stock exchange is stock exchange located in Shanghai. This stock exchange is
having total market capitalization of $5.01 trillion.
5. Hong Kong Stock Exchange
Hong-Kong Stock exchange is Hong-Kong based stock exchange, which is third largest
Asian stock exchange in the terms of total market capitalization. This stock exchange is
having total market of $5.61 trillion (Andrei and Hasler 2014).
6. Euronext Stock Exchange
Euronext is Europe based stock exchange, whose registered office is in Amsterdam and
headquarters is in Greater Paris. The total market cap of this stock exchange is $4.27trillion
and total listed companies of this exchange is 1,300.
7. London Stock Exchange Group

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London stock exchange is London based exchange, which was founded in 1698. This
exchange is having total market capitalization of $3.97 and number of listed companies is
3,000.
8. Shenzhen Stock Exchange
Shenzhen Stock exchange is China based stock exchange, which is among one of the
most known two stock exchanges that is operating independently in China and other is
Shanghai Stock Exchange. This stock exchange is having total market cap of $3.36 trillion
(Curme et al. 2014).
9. TMX Group
TMX group operates and owns Toronto Stock Exchange, which is having total market
cap of $2.22 trillion. The listed companies under this exchange is 2,207.
10. Bombay Stock Exchange
BSE is established in 1875 at Dalal Street in Mumbai. This is tenth largest exchange that
have overall market cap of $2.18 trillion.
Australian Stock Exchange
Australian stock exchange is primary securities of the Australia, whose headquarter is
in Sydney. The foundation of this exchange was in 1987 and it has total market capitalization
of $1,982 trillion. It is owned by the ASX Limited. This exchange was created in 1999, by
the merger between ASX and Sydney Future Exchange. ASX acts as clearing house, payment
facilitator and marker operator. ASX helps in overseeing compliance with the rules of
operations that ultimately educates retail investor and promotes the mechanism of corporate
governance standards. Further, before 2002, the stock market of Australia was divided into
twenty four different industrial sectors. Therefore, for bringing stock market of Australia in

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line with rest of the world, Standards and Poor development was done and the system of
classification was implemented by the ASX that was on the basis of GICS. However, in
current scenario, ASX is classified in total eleven industrial sectors, twenty four groups of
industry, sixty eight industries and 157 sub industries. Moreover, total number of 2,093
stocks listed on ASX. However, among all listed companies, two hundred stocks are the
listed stocks, which acts as the benchmark for the equity performance of Australia
(Asx.com.au. 2019).
Australia helps in promoting confidence of investor and integrity of economy,
corporation and market. It is through different ways, Australian market of stock plays key
role in process of the economic development such as domestic saving mobilization for
bringing domestic resources, enhancing the international capital flow and reallocations from
the active agents (Asker, Farre-Mensa and Ljungqvist 2014).
Overview of Accent Group Limited
Accent Group Limited
The Accent Group Limited is distributor and retailer of lifestyle and performance
footwear, based in Melbourne, Australia. It is listed in ASX and its code is AX1. The
company is operating 479 stores all across 10 retail distribution and banners rights for the 10
international brands all across New Zealand and Australia. It basically distributes and
markets apparel and footwear (Sutcliffe 2018). It offers wide ranges of work boots, athlete
footwear and sneakers. The company is working in retail industry. The market capitalization
of company is AU$894.6M. Lastly, the price performances of company shows that the
volatility of Accent Group’s share price in comparison to industry and market in last five
years is average (Simply Wall St. 2019).

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Chart 1: Five-year share price performance of Accent Group Limited
Adairs Limited
Adairs Limited is locally public owned company that derives revenue from home
furnishing and retail homewares sale. This company operates in the Australia as well as New
Zealand and it is administered by the head office in Victoria. The company is being listed in
ASX with code ADH. Adairs predominantly operates in Manchester retailing with having
160 stores all across Australia and three is in New Zealand. The company is engaged in
selling its products through Adairs, Adairs Kids, Adairs Homemaker and the Urban Home
Republic branded stores. The market capitalization of firm is AU$389.8m. Lastly, the
company’s price performances indicates that volatility of the share price of Adairs in
comparison to industry and market in last five years is average (Simply Wall St. 2019).

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Chart 2: Five year share price performance of Adairs Limited
AHA life Holdings Limited
AHA life Holding Limited operates as online e-commerce marketplace for selling
designer and luxury lifestyle products. It focuses on the consumers for lifestyle and design
goods, for instance accessories and bags, pillows, mirrors and frames, dining and kitchen,
jewelry and others. It serves their customers worldwide. The company is listed on ASX with
code AHL. AHA Life Holding is operating in retailing industry. The market capitalization of
company is AU$8.1m. Lastly, the price performances of company over last five years shows
that company has underperformed in the stock market and industry. The stock price has
declined on the consistent basis, which is not good for company (Simply Wall St. 2019).

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Chart 3: Five year share price performance of AHA life Holding Limited
Conclusion
Therefore, this report concludes that topmost stock exchange of world during 2019
on the basis of capitalization of the market includes London Stock Exchange, BSE,
Hongkong Stock Exchange, Tokyo Stock Exchange, Shenzhen Stock Exchange, NASDAQ,
Shanghai Stock Exchange, Euronext, TMX and New York Stock exchange. Further, this
report has analyzed that ASX helps in playing key role in the mobilization of saving and
enhancing the inflow of international capital. At last, this report has discussed about the
overview, key products, market capitalization and price performance of Accent Group
Limited, Adairs Limited and Ahalife Holdings Limited. The analysis of all these three
companies has found that the volatility of share prices of Accent Group Limited and Adairs
Limited in comparison to industry and market is performing on average basis. However, the
share price volatility of AHA life Holdings Limited in comparison to industry and market is
underperforming.

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Reference
Adam, K., Marcet, A. and Nicolini, J.P., 2016. Stock market volatility and learning. The
Journal of Finance, 71(1), pp.33-82.
Andrei, D. and Hasler, M., 2014. Investor attention and stock market volatility. The review of
financial studies, 28(1), pp.33-72.
Asker, J., Farre-Mensa, J. and Ljungqvist, A., 2014. Corporate investment and stock market
listing: A puzzle?. The Review of Financial Studies, 28(2), pp.342-390.
Asx.com.au. 2019. Home - Australian Securities Exchange - ASX. [online] Available at:
https://www.asx.com.au/ [Accessed 13 Dec. 2019].
Bekaert, G. and Hoerova, M., 2014. The VIX, the variance premium and stock market
volatility. Journal of Econometrics, 183(2), pp.181-192.
Curme, C., Preis, T., Stanley, H.E. and Moat, H.S., 2014. Quantifying the semantics of search
behavior before stock market moves. Proceedings of the National Academy of
Sciences, 111(32), pp.11600-11605.
Simply Wall St. 2019. Accent Group (ASX:AX1) - Share price, News & Analysis - Simply
Wall St. [online] Available at: https://simplywall.st/stocks/au/retail/asx-ax1/accent-group-
shares [Accessed 13 Dec. 2019].
Simply Wall St. 2019. Adairs (ASX:ADH) - Share price, News & Analysis - Simply Wall St.
[online] Available at: https://simplywall.st/stocks/au/retail/asx-adh/adairs-shares [Accessed
13 Dec. 2019].
Simply Wall St. 2019. AHAlife Holdings (ASX:AHL) - Share price, News & Analysis - Simply
Wall St. [online] Available at: https://simplywall.st/stocks/au/retail/asx-ahl/ahalife-holdings-
shares [Accessed 13 Dec. 2019].

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Sutcliffe, C.M., 2018. Stock index futures. Routledge.