PIIGS, dirty or pata negra markets?

It is already a bit long time since the beginning of the (still) current financial crisis, when Lehman Brothers declared on bankruptcy and panic rushed into the stocks exchanges. The wave, or much better tsunami, affected deeply all the world, but southern European countries and Ireland (the celtic tiger) suffered the hardest consequences: Portugal, Ireland and Greece were bailed out, Spanish banking system was also bailed out and Italy stood close but finally avoided a troika indirect government.

The acronym PIIGS, from the initials of these countries, emerged again, pointing them contemptuously. Their stocks exchanges experienced a big fall of, at least, two thirds of their value from the highest point to the lowest, as our table shows. All of them presented cheap prices. After the worst part of the crisis, PIIGS show now positive signs in their economies and capital flow again, but prices are still cheap.

MARKET

HIGHEST(2007) LOWEST(2012) DIF. % CURRENT(YESTERDAY)

DIF. % VS. HIGHEST

Spain

15.945,70

6.065,00

- 62%

9.982,70

- 37%

Portugal

13.657,70

4.512,27

- 67%

6.928,19

- 49%

Italy

44.364,00

12.895,00 *

- 71%

19.682,82

- 55%

Greece

5.334,50

485,18

- 91%

1.260,17

- 76%

Ireland

9.968,48

1.916,38 *

- 81%

4.802,82

- 52%

* Lowest in 2009. Sources: Historical indexes charts and T-Advisor compilation

Last year was quite good in PIIGS markets, with a high performance in Spain and Italy, for instance, but the trend keeps on, as the Global Market tool in T-Advisor show. These are the six more bullish markets last week:

PIIGS: Six top bullish markets by T-Advisor

This result repeated in January: Spain and Portugal were the whole month in the top 3 and Italy amongst the 5 more bullish. “PIIGS can fly”, said recently an analyst quoted by AFP, although the sentence is not new, as some comments focused already in that way last October. However, uncertainty remains in these countries. Portugal and Greece are still indirectly ruled by the troika, while Italian and Spanish growth outlooks are still weak. In any case, investment trends detected by T-Advisor tools show that PIIGS markets were in January, at least, pata negra.

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