US posts best returns in developed markets

Yoganand D. | Updated on December 22, 2011 Published on December 22, 2011



India worst performer among BRIC nations; extreme show by different countries

Returns of global benchmarks covered a wide range between positive 80 per cent and negative 76 per cent this calendar. Emerging market indices in general have underperformed their peers, unlike previous years. Among the developed market benchmarks, US indices have managed to protect investor capital better.

The Dow Jones Industrial Average returned 4.6 per cent to the investors for 2011, best developed market returns for the year. This index stands sixth in the gainers list. The more broad-based S&P-500 has lost 1.1 per cent. The fact that US-based investors consider their money to be the safest at home could have helped US stocks in this turbulent year.

Other developed market major such as London's FTSE-100 Index has also performed relatively better, losing only 8.7 per cent. This compares well with others such as Japan's Nikkei-225 that has plummeted 18 per cent and France's CAC-40 index that is down 20 per cent.

BRIC in trouble

The BRIC indices have not been able to deliver good returns to investors this calendar due to concerns of slowing economy, high inflation, falling commodity prices and so on. The Indian Benchmark index Sensex has lost 24 per cent more while Shanghai SE Composite Index has fallen 22 per cent. Both the countries saw investors withdrawing due to monetary policy tightening. Other BRIC indices such as Russian RTS Index and Brazil's Bovespa are down 21 and 18 per cent respectively.

The Philippines' PSEi Index is the outperformer among emerging markets indices. It stands seventh in the 10 best performing stock markets of the year 2011. Our neighbouring country indices have outpaced BSE Sensex. Karachi-100 Index is down only six per cent and Sri Lanka's All Shares Index lost just 11.7 per cent for 2011.

Venezuelan stock market index tops the gainers list with 79.5 per cent return. The country is an exporter of oil and increased global consumption of oil helped it move out of deep recession. Venezuela's IBC Index that trades in the Caracas Stock Exchange bottomed out in late 2008 and has been on a structural bull run since then. In 2011, the IBC Index accelerated, registering new highs.

The Cyprus Stock Exchange General Index was the worst performer, plunging 75.8 per cent. It is no surprise that Greece' Athex Composite Index also features in the list with 53.4 per cent loss. Greece's debt crisis has had financial markets on the edge for most part of this year. The list of worst-performing indices is long this year. Egypt's EGX Index slumped 48 per cent, Ukrainian Equities Index declined 40 per cent, Kazakhstan Stock Exchange Index dropped 37 per cent and Austrian Trade ATX Index nose-dived 36.5 per cent. Slovenian's Blue Chip Index, Argentina's Marval Index, Portuguese's PSI 20 Index and Nairobi All Share fell approximately 30.5 per cent.

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Published on December 22, 2011
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