The global rally in stocks continued into the New Year, as the S&P/Citigroup Broad Market Index (BMI) Global Composite, which measures the performance of the entire universe of investable securities greater than U.S.$ 100 million, rose 2.17% in January 2004, extending the longest series of monthly gains in index history to ten straight months. Since the winning streak began in April 2003, the BMI Global has rebounded by 46.85% in U.S. dollar terms, although the index remains well below the all-time peaks made in early 2000.
"Our figures show that global equity markets have recovered to the levels of February 2001, when the bear market that lasted until the first quarter of last year was already underway," said Patrick Kerr, Associate Director, Standard & Poor's. "All but two developed markets rose in the month, and while emerging markets generally rose, several developing countries were weaker."
The BMI Developed World, the developed country subset of the BMI Global Composite, gained 2.11% in January, but was outperformed by the BMI Emerging Markets, which rose 3.37%, led mainly by countries in the emerging Asia-Pacific region, which increased 5.03%.
"Globally, small-cap stocks continued to outperform large-caps. Small-cap stocks were the first to signal the recovery in global markets and they have continued to lead the throughout the last 10 months of the market rebound," said Kerr.
The Extended Market Index (EMI) Developed World, which measures the small-cap universe (defined as the bottom 20% BMI market cap for each country), gained 3.33% in January, besting the 1.77% rise for the Primary Market Index (PMI) Developed World which measures the large-cap universe (defined as the top 80% BMI market cap for each country). The trend held true among emerging markets as well, with the EMI Emerging Markets gaining 4.89%, versus 2.95% for the PMI Emerging Markets.
About S&P/Citigroup Global Equity Indices
The S&P/Citigroup global equity index series is a broad, flexible benchmarking system. With coverage of over 7,500 companies in 52 countries, representing 97% of the world market capitalization, the S&P/Citigroup indices measure across size segment, region, country, and sectors. The indices, which provide the world's only complete free-float adjusted history dating back to 1989, follow a simple rules-based methodology that includes all companies with a total float-adjusted market capitalization greater than US$ 100 million. More information about the S&P/Citigroup Global Equity Indices can be found on www.indices.standardandpoors.com.
Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With 5,000 employees located in 20 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.
