By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Egypt, Kenya and Nigeria are reported to be the top World Market Indexes in 2012.
This is contained in a Presentation Friday titled “Issues in Nigerian Capital Markets and Investment Outlook for 2013 by Sewa Wusu, Head of Research, Sterling Capital Markets Limited at 2nd Finance Correspondents Association of Nigeria (FICAN) Roundtable on the Economy with the theme “Nigerian Economy in 2012: The Issues and Expectationsâ€ÂÂ.
According to Wusu in the Presentation, the Egyptian Market defied the odds of political tension, led other African Markets with 49.56 percent (49.56%) return.
Kenya followed with 39.32% Return, while Nigerian returned 35.45%. Ghana finished at 23.68%, South African market ended the year with a 20.36% Return.
“But not all Markets have recovered when compared to their 2008 levels when Markets were at their peak†Wusu said.
Nigeria’s Year Start Index was 20, 730.63 compared to Year End Index of 28,078.81 indicating a 35.45% Returns.
In the North/Latin America (USA), the Dow Jones Industrial Average Year Star Index was 12,276.60 compared to Year End Index of 13,104.14; showing a Return of 6.74%.
Standard and Poors 500 (USA) on its part had a Year Start Index of 1,261.92 compared to a Year End Index of 1,426.19; representing a Return of 13.02%.
NASDAQ Composite Index (USA) Year Start Index was 2,615.43 compared to Year End Index of 3,019.51; indicating a 15.45% Return for year 2012.
For Europe/Middle East, FTSE 100 Index (UK) went from a Year Start Index of 5,572.28 compared to Year End Index of 5,897.80; showing a Return of 5.84%.
The CAC 40 Index (French) started with an Index of 3,139.47 compared to Index End of 3,641.07; indicating a Return of 15.98% in the review period.
While DAX Index (Germany) started with an Index of 5,898.35 and ended with 7,612.39; representing a Return of 19.06%.
In Asia, Nikkei 225 (Japan) started with an Index of 8,455.35 and ended with 10,395.18; showing a Return of 22.94%.
HANG SENG Index (Hong Kong) started with 18,434.40 and ended with 22, 656.92 with a Return of 22.91%.
According to Wikipedia, the free encyclopedia, a Stock Market Index is a method of measuring the value of a section of the Stock Market. Its computed from the prices of selected Stocks (sometimes a weighted average). It is a tool used by investors and Financial Managers to describe the Market, and to compare the Return on specific investments.
Wusu affirmed that the performance was an improvement over the lull experienced in 2011 when the Market witnessed a Negative Return of -17.42%.
“Given the level of performance in 2012, the Capital Market is expected to witness another impressive performance this year. Performance will be driven more by strong Macroeconomic Environment, good Corporate Performance and Companies’ Fundamentals. Expected monetary policy easing in 2013 should induce investment switch to favour Stock Market even as Bond Issuance by sub nationals would continue,†he said.