Despite the best efforts of central bankers, the European crisis continues to drive markets to lower lows. One of the recent victims is the Cypriot Equity market, which received zero boost from the Draghi statement earlier in the week and as a result touched a new low on Thursday. Here's the chart of the benchmark Cypriot equity index for the past 2 months at 15 minute granularity:
For the entire week the Cypriot stock market was down well over 13%, making it worst performer over that time frame. Greek equities, which tend to track Cyprus' fairly closely, were down a little over half that amount. Here's the bottom 10 performing benchmark equity indexes going back one week:
The Cypriot economy has suffered mightily during the global economic crisis, particularly during the second wave that started in November of 2009. Cypriot equities are down over 93% since then, the worst on the planet. Surprisingly, unlike many of its European cohorts, Cyprus has yet to receive a bailout from the EU/IMF/ECB triumvirate (although they were granted a 2.5 billion Euro low-interest loan from Russia). However that fact will soon change as Cypriot authorities are currently in the process of negotiating a troika-supplied bailout.
Here's more from gulfnews.com:
Cyprus last month became the fifth country to seek financial support
from its Eurozone partners. It needs at least 2.8 billion euros (Dh12.5
billion) to recapitalise its banking sector, which took heavy losses on
Greek debt.
The country's 18 billion-euro economy is
projected to shrink by 1.5 per cent of gross domestic product this year
before returning to marginal growth in 2013.
Credit ratings agency
Standard & Poor's estimates Cyprus' bailout needs to amount to as
much as 15 billion euros over three years.
No comments:
Post a Comment