Comparison of Indonesia, Taiwan, and Netherlands Stock Market

Indikator Used for Comparison:
a. market volatility
b. GDP growth rate
c. unemployment rate
d. types of product traded
e. holiday schedule
f. exchange rate

Comparative Analysis:
a.

Market Index	Risk (STD Deviation)
JKSE	0,086321
TWII	0,080121
AEX	0,072244

The result above shows us that JKSE has the highest standard deviation (0,086321 or 8,6321%) rather than others market index. It means that Indonesian Stock Market has the highest risk rather than Taiwan Stock Market and Netherlands Stock Market. If the investors would play save, they can choose Netherlands Stock Market, because Netherlands Stock Market has the lowest risk (0,072244 or 7,2244%) rather than others market index, so it can help the investors who want to invest their money safety.

 Taiwan Stock Market does not have high risk and low risk, it’s in average among them. If the investors would play in so-so condition, they can invest their money in the Taiwan Stock Market.

b.

Comparing the GDP Growth Rate of those countries, Indonesia had to face lower GDP growth rate five times, Taiwan six times, and Netherlands is also six times. Overall, Indonesia have better economic health rather than others country. It means that the investors’ confidence to invest in Indonesia is higher than other countries.

c.

If we compared the unemployment rate between those countries, the Indonesia unemployment rate tends to decrease year by year, even it isn’t in a high percentage. But, overall Indonesia has the highest unemployment rate rather than others and Taiwan has the lowest unemployment rate rather than others. It means that the economic state of Taiwan is better rather than other countries.  

d.

Types of products of each stock market are:

a)      Indonesia Stock Market

It has five types of products, they are: equities, bonds, derivatives, mutual funds, and Sharia.

b)      Taiwan Stock Market

It has seven types of products, they are: stock, TDR (Taiwan Depository Receipts), warrant, bond, beneficiary certificate, ETF (Exchange Traded Fund), and beneficiary security.

c)      Netherlands Stock Market

It has four types of products, they are: shares, trackers, warrants, certificates.

Based on that, Taiwan Stock Market has more types of products rather than other Stock Market.

e. 

Trading Days	Year		Indonesia Stock Market	Taiwan Stock Market	Netherlands Stock Market
		2007	246	247	255
		2008	240	249	256
		2009	241	251	256
		2010	245	251	258
		2011	247	247	257

If we compared the trading days between those stock markets, it shows us that Netherlands Stock Market has the longest trading days. It means that the efficiency of the trading activities is higher rather than other stock markets.

f. 

In USDIDR exchange rate graph, when Rupiah was depreciate, US Dollar was appreciate, and at that time, the price of stock in Indonesia Stock Market tended to decrease. It happened because of the value of Rupiah itself was declining, so the price would be cheaper than before. It’s also happened in others stock market. When Taiwan Dollar and Euro were depreciate, the price of stock in Taiwan Stock Market and Netherlands Stock Market tended to decrease, because of the value of Taiwan Dollar and Euro were declining.

If we compared the exchange rates among them, EURUSD is more volatile than others. It means that the price of stock in Netherlands Stock Market is more volatile too.