Gold Magazine January - February 2014, Issue 34

COVER STORY TOP 10 BEST PERFORMING STOCK MARKETS OF 2013 On the whole, the world’s stock markets delivered solid returns for investors in 2013, but the list of the best performers includes some surprising names... I nvestors brave enough to plough their cash into shares in Venezuela would have quintupled their money in 2013. The Caracas Stock Exchange, which lists just 15 Venezuelan shares, returned a whopping 452% in 2013, according to data firm Morningstar. The strong stock market returns came despite the anticapitalist policies of the former president, Hugo Chavez, who died in March. Chavez was not a fan of the private sector and, during his 14-year reign, he regularly seized company assets. This, in turn, discouraged foreign investors from putting their money into companies in the South American region. But investors should be cautious about history repeating itself in 2014. The main reason for the Venezuelan stock market’s strong performance was the fear that the country was on the verge of a currency crisis, rather than investors warming to President Nicolás Maduro. “Domestic investors are seeking to protect their bolivars from devaluation and inflation by buying the few stocks available on the local exchange – pushing up prices,” said Barclays Wealth. Venezuela’s government devalued the bolivar by 32% in February 2013. There are other surprises among the Top 10 stock markets of 2013. A number of debt-ridden economies, such as Iceland and Greece, make the list, with rises of 38% and 35% respectively. Ireland, which suffered heavily during the financial crash but has been able to borrow on the open market again, also features, with its stock market returning 35%. Elsewhere, two frontier markets – Zambia and Nigeria – also make the list. Such markets have been touted as the next generation of emerging economies. Both nations have rapidly growing young populations and should, in theory, benefit from a rise in domestic consumption, which should lead to more foreign investors putting money into their stock markets. Less of a surprise is to see Japan’s Jasdaq index and America’s technology-heavy Nasdaq exchange in the top 10. 33.7% USA/Nasdaq Index 34.5% 33.9% 9.10. 8. 34.9% 7. 6. 35.2% 5. 4. 37.2% 3. 38.5% 2. 51.1% Argentina/Mercado de Valores COUNTRY/STOCK 31.8% Pakistan/Karachi Stock Exchange MARKET RISE IN SHARE PRICES 2013 Greece/Athens Stock Exchange Nigeria/Nigerian Stock Exchange Ireland/Irish Stock Exchange 1. 452% Venezuela/Caracaa Stock Exchange Zambia/Lusaka Stock Exchange Iceland/OMXI All Share Japan/Jasdaq Index Source: Morningstar 20 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS cover_story.indd 20 08/01/2014 16:42

Gold Magazine January - February 2014, Issue 34 | Seite 20