Market Cap of Bursa
March 2009 RM662 bil
Nov 2010, 22 RM1,200 bil
GDP of Malaysia
2009 RM679bil
2010 Estimate RM760 bil
GDP 3Q 2010 is RM195 bil, 5.3% growth from Q2.
Market cap is a perceived value - subject to social mood, but influenced by liquidity, government policy, unemployment rate, talent migration
GDP is the "real" value - measurement of production of each sector
Market cap is like the share price of a listed company while GDP is the Financial Statements of a company.
MyView
Hence, market cap does not measure exactly the health of an economy. Far from it. It is just an indication of the social mood at certain time.
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