Thursday, July 9, 2009

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Central Bank: World markets outperform BISX By VERNON CLEMENT JONES ~ Guardian Business Editor ~ vernon@nasguard.com: BISX is now under-performing all of the world's major equities markets, reports the Central Bank, the widening gap the result of recent rallies that have all but alluded the local exchange. While year to date, those stocks listed on the troubled Dow Jones Industrial Average has given up 3.15 percent of their collective value, BISX has let go a whopping 6.68 percent, according to the latest Central Bank monthly economic report, for May. The gap between the local exchange and that of other world equities markets is even greater. London's Footsie (FTSE) 100 saw a much more modest 0.37 percent drop for that same five month period ending May 31. The S&P 500 actually grew its own by 2 percent, Germany's Dax by 2.72 and Japan's Nikkei 225 by 7.48 percent. The differences between their fortunes and those of investors in this country was even more pronounced for the month of May. Then BISX value dropped 1.86 percent while all of those other international exchanges saw gains well in excess of 3 percent. The hardest hit among them, the Dow, also shot up some 4.07 percent during that 31 day period. The recent rise on world markets is the result of market rallies that have seen investor confidence both buoy and buoyed by an easing of recessionary trends. That hasn't necessarily been the case in this jurisdiction, with the single largest segment of the BISX exchange — financial services — continuing to grapple with a spike in arrears. It isn't likely to change over the remainder of the year, said one analyst Tuesday. He suggested that static, if not deteriorating, position is going to keep BISX values on the downside well into 2010. The phenomenon is also being driven by the increased need for liquidity among BISX investors and their willingness to sell stock at reduced prices. More fundamental concerns about their confidence in BISX listed companies is also limited just how much they can fetch for shares on the auction block. The gap between the relatively quiet BISX and much more active exchanges like the Footsie and the S&P may be starting to narrow, although not for any positive reasons. World stocks have been inching lower since mid-June as a three-month stock market rally has lost steam. That easing is the result of employment and other economic indicators that have also given up some of the progress made during the first five months of the year. The release of company financials in those financial centers later this week is expected determine whether markets begin another rally or slide back, alongside BISX. It will likely take six or more months of upward movement on Wall Street to encourage the local exchange to begin its own turnaround. Wednesday, July 8, 2009