Showing posts with label 2012. Show all posts
Showing posts with label 2012. Show all posts

Tuesday, January 10, 2012

Stock Market Performance of Russia



Emerging markets such as BRIC countries, Countries in Africa provide an excellent ground to test standard models of the developed markets or explore the specifics of their financial environment. Such models help us in gauging the return one can expect for the attached risk premium. We would like to highlight and discuss the performance of one such emerging market Russia today.

Over the last one year Russian Stock Market is down 22.22% from the levels of 1800 (12-Jan-2011) to the levels of 1400 (10-Jan-2012) as on date. Its down 43.5% from its all time high of 2478 made on 12-May-2008. The markets are still 1000 points away from its all time high. A comparison with Crude Oil charts does reflect a close correlation with Stock Market performance for Russia. As Crude rises its indices go up. With Crude looking to stabilize at around 100$ barrels with most analysts pointing towards the end of the boom in commodities, Russia will have to come up with new economic sectors which attracts investors and enable companies to raise capital through the markets.

Like other emerging markets Russia exhibits High Concentration and Low Liquidity which creates a vacuum when a investor with big position is switching from one stock to another. This is a nature of emerging markets and gets addressed as new companies get listed on the market leading to increase in market cap and offering new opportunities for the investors to gain from the increasing depth.



Monday, January 9, 2012

World Stock Market Performance in New Year 2012


Index Name
30-Dec-11
6-Jan-12
Change
In %
Dow Jones
12260
12351
91
0.742251
Nasdaq
2609
2673
64
2.453047
Nikkei
8357
8390
33
0.394879
Kospi
1826
1825
-1
-0.05476
Hangseng
18755
18488
-267
-1.42362
Shanghai
2182
2220
38
1.741522
S&P 500
1260
1277
17
1.349206
CAC
3162
3134
-28
-0.88552
DAX
5909
6054
145
2.453884
FTSE
5628
5643
15
0.266525
Sensex
15702
15771
69
0.439434

*Above Pie Chart is a reflection of this chart.


Stock Market Performance over the first week of the new year 2012 is not much convincing with clear directions of upward or downward bias not clear. While Dow Jones was Flat, NASDAQ showed better performance with 2% gain over the week. Shanghai, DAX, S&P 500 and Asian market closed with positive bias with CAC and Kospi closing with negative bias.

Markets worldwide are likely to show a disconnect among themselves with US showing flat to negative performance and Europe completing there bottoming out process during this month. Europe will exhibit good volatility as it strives to solves the deficit issues of its countries in the first half. Do expect a lot of see-saw there though. Financials and companies with high debt are likely to make new bottoms, a technical rally than should bring some sanity. Though remember NO BOTTOM IS GOOD ENOUGH. Gold and US Dollar will be safer investments during this time.