According To The Magazine “The Economist” The Spanish Stock Exchange Has Been The World’s Best Performer In The Last 10 Years

The Spanish equity market has been the best performer over the last 10 years, according to data collected by The Economist from Thomson Datastream. The accumulated Spanish stock market’s return during the period was 241%. The accumulated annual return on the IBEX 35® index was 15.48% up to 9 September 2005, and that on the Indice General de la Bolsa de Madrid (IGBM) was 17.96% in the same period.

The capitalisation of the Spanish stock market this year stands at $ 950 bn from $170 bn in 1995 and the ratio capitalisation to GDP is now 95%, in contrast with 30% in 1995.

Over the last 10 years, the growth of the Spanish equity market has brought about, among other factors, a positive trend in the saving capacity of Spanish families, which at the end of the first quarter was € 1.4 trillion, in sharp contrast with € 641 bn in 1995. In addition to this, the value of portfolio shares increased threefold during the same period.

Despite the solid growth trend of the market, the PER ratio of the Spanish stock market remains at 14.5 times earnings, in line with the main European stock exchanges and below the ratio of American stock markets, at 15.5. earnings.

The dividend yield during the period continued flat and stands now at 3%, according to the data contained in the latest capital markets report published by Morgan Stanley.