February 10, 2008

Global stock markets lost $5.2 trillion in January: credit agency

NEW YORK (AFP) - Global stock markets were walloped with a collective loss of 5.2 trillion dollars in the month of January as investors scurried for cover in the face of economic uncertainty, a report showed Friday.

Standard & Poor's, a US credit rating agency that manages a number of global stock indexes, said 50 of the 52 main global equity markets lost ground in January.

Emerging markets fell an average of 12.44 percent and developed markets lost 7.83 percent to register one of the worst ever starts to a new year, S&P said as it released its global stock market review.

"There were few safe havens in January as 50 of the 52 global equity markets ended the month in negative territory, with 25 of them posting double- digit losses," said Howard Silverblatt, a senior analyst at S&P.

"High volatility, quick turnarounds in both the market and investor sentiment, and drastically lower stock prices prevailed throughout the month."

All 26 developed equity markets posted negative returns in January, with 16 losing at least 10 percent of their value.

The only markets to see gains were in Morocco (up 10.17 percent) and Jordan (up 3.11 percent).

Turkey was hit hardest during the month losing 22.70 percent followed by China (21.40 percent), Russia (16.12 percent) and India (16.00 percent).

The decline in the United States was comparatively mild at 6.07 percent, but German shares slumped 13.7 percent and French stocks lost 12.3 percent. British share prices gave back 8.8 percent in January and Japanese stocks lost 4.5 percent, according to S&P, which calculated the figures on a US dollar basis.

No comments: