Individual Report: Top Share Markets and ASX Analysis

This report, prepared for a Business Finance course, examines the top ten share markets globally, ranked by market capitalization, with the New York Stock Exchange leading the list, followed by NASDAQ, Tokyo Stock Exchange, and others. It provides an overview of the Australian Stock Exchange (ASX), its establishment, classification methods, and significance to the Australian economy, including its role in investments, GDP contribution, and regulatory functions. The report further analyzes three Australian listed companies: Novita Healthcare Limited, Manalto Limited, and Analytica Limited, including their market capitalization, industry sectors, ASX codes, and historical price movements, along with relevant references. The analysis provides valuable insights into the performance of these companies within the context of the ASX.

BUSINESS FINANCE

Top ten share markets across the globe
The share markets or the stock markets or stock exchanges provide a platform for
the investments in the shares of the public limited companies. The various share
markets have been ranked according to their market capitalization.
(Source: Statista, 2019)
The picture above highlights the top ten share markets, among which the New York
Stock Exchange ranks first. Established in the year 1792, the market is so large that
as a whole accounts for 40% of global stock market. NASDAQ follows it, as founded
in 1971 and lists technology multinationals like Amazon, Apple, Facebook and more.
Tokyo Stock Exchange follows the list, that is popularly known as Nikkei 225, and
was initially established in the year 1878, and re-opened in 1949, after being
suspended for some time. The Shanghai Stock Exchange is fourth largest, and was
initially founded in the year 1866. Some renowned listings on this stock exchange
includes Chinese entities like the Commercial Bank of China. Hong Kong Stock
Exchange that lists mostly the companies from Mainland China follows this list. The
Euronext stock exchange stands sixth and is the main stock exchange of the
European companies. The stock exchange was established to extend the EU
principles of trade and finance. One of the oldest, founded in 1698, The London
Stock Exchange stands next in the market capitalization rankings and lists different
companies from various countries. The Shenzhen Stock Exchange is one of the only
two independent stock exchanges in China, was founded in the year 1990 and
stands at eighth position according to the market capitalization coverage. Number

ninth on the list is the Toronto Stock Exchange, that lists mainly the Canadian
entities and was formed in the year 1852. The last on the list is the Bombay Stock
Exchange also referred to as the Asia’s oldest stock exchanges and is located at
India. The exchange lists maximum number of companies on it, though the said
numbers can be misleading as most companies are small cap companies.
Australian Stock Exchange: Overview and Evolution
With the passing of the legislation in the Australian Parliament, the Australian Stock
Exchange, or the ASX was established on April 1st 1987. The rationale for said
establishment was to organise into a single national entity, the otherwise state wise
segregated stock exchanges. The distinction of the companies on the stock
exchange is created through the Global Industry Classification Standard method
(GICS) (Listcorp, 2019). The method has classified total number of entities into 11
industry sectors, 24 industry groups, 68 industries, and 157 sub industries. Some of
the main sectors as recognised in Australia are Health Care, Energy, Materials, Real
Estate, Information Technology, and others.
The significance of the Australian stock exchange for the economy lies in the fact
that it has provided a systematic platform for the investments and disinvestments,
and has contributed towards the GDP of the country over the years. In addition,
some of the key contributions by the ASX to the Australian corporate climate are in
the form of multi-disciplinary roles of market controller, payment facilitator, regulator
and promoters’ of capital structure and governance standards. Thus, not only the
stock exchange has contributed towards promoting the investment habits and equity
culture, but the guidelines in the form of the ASX principles and rules, have also
regulated the trade in the market, for better control of companies and overall
efficiency. In addition the interests of investors are promoted and protected by the
ASX.
Three Australian Listed Companies: Overview and price
movements
The first company that is Novita Healthcare Limited (ASX Code: NHL) is an
Australian based Medical Technology Company, the shares of which are traded on
the Australian Securities Exchange (Novita Healthcare Limited, 2019). The company
was officially listed on ASX on 23/09/2004. The core focus of the company is to
develop TALI Health and the TALI Technology to facilitate the children in context of
childhood attention, and improve their core cognitive performance. The market
capitalization of the company is AUD 43.46 million (Australian Stock Exchange,
2019a), and the company belongs to the healthcare sector. The price history is
depicted as follows. Thus, while the prices in the 2015 were $0.257, the same has
declined to $ 0.075 in the 2019 November.

(Source: Australian Stock Exchange, 2019a)
The second Australian Stock Exchange listed company is Manalto Limited. The
company is provider of the Social Media Engagement Solutions to the companies at
the worldwide level. Hence, the ASX industry sector of the company is Software &
Services. Some of the prime services provided by the company are that of
management of users, scalable posting, measure the social media performance
through analytics and social listening on behalf of client (Manalto Limited, 2019). The
market capitalisation of the company is AUD 3.6 million. The ASX code of company
is MTL. The price movements present a decline trend as evident from the following
graph.
(Source: Australian Stock Exchange, 2019b)

The third company is the Analytica Limited, which is a Brisbane-based public
company listed on the Australian Stock Exchange. The company is engaged in the
designing, and development and the supply of Class I and II medical devices
(Analytica Limited, 2019). The ASX Code of the company is ALT. The company was
founded in the year 1985, and officially got listed on 25/10/2000. The market
capitalization of the company is AUD 10.56 million. The price movements of the
company are highlighted in the following graph.
(Source: Australian Stock Exchange (2019c)

References
Analytica Limited (2019) About us [online] Available from:
https://www.analyticamedical.com/AboutUs.html [Accessed on: 13 December 2019].
Australian Stock Exchange (2019a) Novita Healthcare Limited [online] Available
from: https://www.asx.com.au/asx/share-price-research/company/NHL [Accessed
on: 13 December 2019].
Australian Stock Exchange (2019b) Manalto Limited [online] Available from:
https://www.asx.com.au/asx/share-price-research/company/MTL [Accessed on: 13
December 2019].
Australian Stock Exchange (2019c) Analytica Limited [online] Available from:
https://www.asx.com.au/asx/share-price-research/company/ALT [Accessed on: 13
December 2019].
Listcorp (2019) ASX Sectors [online] Available from:
https://www.listcorp.com/asx/sectors [Accessed on: 13 December 2019].
Manalto Limited (2019) Cloud Based Social Media Management – At Scale [online]
Available from: http://manalto.com/ [Accessed on: 13 December 2019].
Novita Healthcare Limited (2019) About us [online] Available from:
https://novitahealthcare.com.au/about-us/ [Accessed on: 13 December 2019].
Statista (2019) Largest stock exchange operators worldwide as of May 2019, by
market capitalization of listed companies [online] Available from:
https://www.statista.com/statistics/270126/largest-stock-exchange-operators-by-
market-capitalization-of-listed-companies/ [Accessed on: 13 December 2019].