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Below the Key Equity Index Performance of Countries across the World as of Sep-2023 from Sriram BKR, Senior Investment Strategist at Geojit Financial Services.

* 5 out of 45 nations’ equity indices were at or near 5+ year highs. 2 Nations were at or near 5 year lows. 

* Argentina’s Merval crossed 600000 levels to end at 653603. Country continues to reel with hyperinflation and weaker currency. Economic experts suggest that it is high time, Argentina adopts Dollarization. 

* India’s Sensex stood 5th among 45 nations by 3 year CAGR (18.8%) & 5th by 5 yr returns (10.9%).

World Equity indices Key Highlights – Sep’23:

1 World average of 45 nation’s equity indices stayed negative by -1.8% in Sep’23.

2 10 out of 45 nations’ widely tracked equity indices (22% of the universe) had gains during the month by an average of 2.3% & 78% nations’ indices dropped by an average of -3.0%.

3 TOP-5 (by 1 Month % Chg): Turkey’s BIST-100 gained the most by 5.3%, a nation that’s struggling with persistent higher inflation and a weaker currency ; Colombia’s Colcap was up 4.2% ; Norway’s Oslo All-share continued to stay up by 3.6% ; Philippines’ PSEi comp was up 2.4% ; UK’s FTSE-100 went up 2.3%.

4 BOTTOM-5 (by 1 Month % Chg): Argentina’s Merval tumbled by 13.9%, after posting meteoric rise for months together, it’s 3rd worst monthly fall in 5+ yrs ; Thailand’s SET was down -6.0%, also it’s 3rd low in 60+ months ; Ireland’s ISEQ Overall was down -5.9% ; Vietnam’s VN was down -5.7% ; US’s S&P 500 fell by -4.9%.

5 India’s Sensex went up by 1.5%, ranking 7th overall. It ranked 2nd out of 14, in the Asia-Pacific region.

6 Regional averages in Sep’23: Middle East & Africa was up by a paltry 0.03% ; Europe was down by -1.8% ; Asia-Pacific was down -2.0% ; Americas were down -3.5%.

The Year That Was … Performance highlights – 1 Year:

1 World average for the year ending Sep’23 stood at 22.2%, with higher contributions from Argentina and Turkey. Ex both nations, the average was up 12.3%.

2 38 nation’s indices (84% of the universe) gained by an average of 27.3% and 16% nations’ indices were down by an average of -5.7%.

3 TOP-5 (by 1 Yr % Chg): Argentina’s Merval spiked up by 304.4% ; Turkey’s BIST-100 gained by 162.1%. Both the countries are under severe inflationary stress and weaker currency. Poland’s WIG was up 42.3% ; Denmark’s OMXC20 was up 39.2% ; Italy’s MIB was up 36.8%.

4 BOTTOM-5 (by 1 Yr % Chg): Qatar’s QE General continued to stay lower declining -19.3% ; Thailand’s SET was down -7.4% ; Russia’s RTSI was down -4.6% ; Finland’s Helsinki was down -3.6% ; Saudi’s Tadawul All-share was down -3.1%.

5 India’s Sensex was up by 14.6%, ranking 18th out of 45 nations.

6 Regional averages – YoY: Americas’ average stood high by 51.9% (Ex-Argentina the average was up 9.8%) ; Middle East & Africa’s average was up 30.6% (and ex-Turkey the average was at 8.6%) ; Europe’s average grew 18.9% ; Asia Pacific was up by 7.0%.

7 Argentina’s equity index’s rise comes on the back of hyperinflation, quadrupled by the economic model the nation adopted, weaker currency that’s pushing the system into the brink of collapse, as cited in a media report. Experts suggest that it is high time, Argentina adopts Dollarization and that is the only way for the country to avoid a “death spiral”.

3 Year performance highlights:

1 World average CAGR went up by 13.2%, over the past 3 years, compared to the base periods, when the world was heading towards initial phases of unlocking, alongside vaccination drives and opening up of economies in 2020, post the China’s Wuhan originated worst pandemic, Covid 19.

2 India’s Sensex gained by 20.0% CAGR, staying at rank 5th among 45 countries.

3 Best 5 Nations (3 Yr CAGR): Argentina (138.9%) ; Turkey (93.8%) ; Nigeria (35.2%) ; UAE (22.4%) ; India (20.0%).

4 Bottom 5 Nations (3 Yr CAGR): Hong Kong (-8.8%) ; Russia (-5.1%) ; Malaysia (-1.8%) ; Colombia (-1.45%) ; Finland (-1.43%).

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