International
Venezuela and Ireland among worst global stock market performers in 2007; China's CSI 300 benchmark rose 161%; Zimbabwe's market advanced 322,111% against backdrop of hyperinflation
By Finfacts Team
Jan 1, 2008, 13:36

Asian stock markets had a strong but volatile year with China leading the world in performance. Several exchanges posted gains of more than 20% in the region with only Japan and New Zealand recording losses.

The MSCI Asia Pacific Index rose 12%. However, the annual rise was 32% in MSCI's index of non-Japan Asia Pacific shares, which includes the high-growth markets of India and China.

China's CSI 300 benchmark, which tracks the performance of the top 300 companies on the Shanghai and the Shenzhen stock exchanges, surged more than 161% in the past 12 months. The Hang Seng China Enterprise Index, which was launched in 1994 as a benchmark for the stock price performance of China-incorporated companies listed in Hong Kong, rose more than 54% in 2007. The Hang Seng rose 39%.

The Bombay Stock Exchange's Sensitive Index gained 47% while in Korea, the KOSPI index recorded its fourth double-digit percentage gain in five years with a rise of 32%. Investors in Malaysian stocks had another record year in 2007, with the KL Composite Index (KLCI) posting its biggest annual rise since 1999 and a second straight year of double-digit gains. The KLCI advanced 31.8% in the year. Singapore's Straits Times index rose 16.6%. Australian shares closed the year up 11.8% - the fifth consecutive year of gains. The benchmark S&P/ASX 200 index posted its smallest annual gain in four years, declining after being up about 21% when it hit a  high of 6,851.5 in November.

New Zealand's NZX-50 index fell 0.3% while Japan's Nikkei 225 index fell 11%.

In Latin America, Brazil's Bovespa index of most-traded shares on the Sao Paulo exchange, surged 44%, in a fifth year of gains.

Chile's IPSA index rose 13% while in Colombia, the IGBC index had its first annual decline in six years. Peru's Lima General index rose 36% in 2007, its sixth straight annual gain.

Mexico's Bolsa index jumped 48% last year.

In Europe, the Dow Jones Stoxx 600 Index posted its first annual fall since 2002, with a loss of 0.2%.

FTSE 100 index in London closed Monday at 6,456.90, recording a rise of 3.8% in 2007. Germany's DAX was the best performer in Western Europe with a rise of 22% while France's CAC 40 added 1.3%. In Madrid, the IBEX 35 index has ended its fifth consecutive year of gains with an increase over the year of 7.3%. The growth is down on 2006 when it was 32%, and also on 2005 when it was 18%.

In Eastern Europe, Estonia's OMX Tallinn index, lost more than 13% while Russia’s MICEX stock index expanded 11.5% in 2007. In 2006, the index grew 67.5%.

In New York, the Dow Jones Industrial Average rose 6.4% compared with a 16.39% advance in 2006. The Dow posted its worst fourth-quarter fall in 20 years. The Nasdaq Composite rose 10% in 2007 while the S&P 500 advanced almost 4%.

The Russell 2000 index of smaller companies fell almost 3% in 2007.

In South Africa, the JSE All-Share Index rose 16% in 2007.

The mining index put on a record 20.83% to 2,363,257,849,25 points to close the year with a 477,752% gain.

The Herald reported that most analysts do not expect a dramatic change in the coming year as the stock market will continue tracking asset price inflation with "company earnings in the current environment failing give a true picture of how much a company is really worth."

Irish Stock Market

The Irish stock market shed €26 billion in value in 2007 - one of the worst performances since its foundation in 1793.

The ISEQ closed on Monday at 6,934, down from 9,408 at the beginning of 2007 and its record close of 10,041 in early February.

The ISEQ financial index lost €19.2 billion in value as foreign holders who own almost two-thirds of the shares in Ireland's biggest companies, reacted to the contracting residential property market.

AIB lost almost €6 billion, or 31%; Anglo Irish Bank shed €4 billion; Bank of Ireland lost 41% of its value and Irish Life & Permanent plunged 43%. Building materials multinational CRH, fell 24% or €4 billion.

Beverage company C&C was hit by a grim summer and increased competition, which impacted UK cider sales maker, and the shares fell more than 69%. Aer Lingus shares closed on Monday at €2.09, a fall of 23% in 2007.

Elan bucked the trend in 2007 and rose by a third.

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