Sunday, July 24, 2011

Today's Major Market Move - Cyprus Equity Market Up 18.5% in the Past Week

Europe equity markets, along with the rest of the world, have caught a case of bailout fever and are surging on the news that the German taxpayers are willing to continue to support early retirement for Greek pensioners. The equity market that has benefited the most from the recent turn in events is the one in Cyprus (which makes sense since it was the one that was most beaten down at the possibility of a Greek default). The following table shows % gains for the past week of equity markets around the globe. The biggest gainers were almost exclusively in PIIGS countries, with the exception of Cyprus and Hungary.

Click on the image for a larger view.
Click here for the current version of the above table.

Despite these recent gains, Cypriot equities still have a ways to go before recouping all of 2011's losses.

Click on the image for a larger view.
Click here for the current version of the above table.

Our June 26 post also focused on Cyprus where we mentioned how it was the worst performing equity market in 2011. That still remains the case today.

Contributing to the country's woes was the annihilation of its main power plant when (you can't make this stuff up) confiscated munitions being stored nearby accidentally exploded. From the WSJ:
The power plant's destruction has led to rolling blackouts that have forced people to endure temperatures of over 40 degrees Celsius (104 degrees Fahrenheit) without air conditioning, sending business productivity plunging at the height of the tourist season.

Companies across the island are taking creative measures to keep things running; electronic tills have been replaced by cash boxes, while vendors now handwrite receipts. Taxi drivers complain that road accidents have increased amid traffic-light blackouts.

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