Despite the many natural calamities and corruption scandals that plagued the Philippines last year, here’s one reason to celebrate the year 2014.
Based on global stock market data from Trading Economics, the Philippine Stock Exchange (PSE) is one of the world’s 10 Best Performing Stock Markets last year.
The PSE grew in value by 22.76% in 2014, which means an investor who placed P100,000 from the start of January 2014 now has P122,760 at the end of December last year.
The accelerated pace of Philippine stocks in 2014 was well above the tepid 1.33% growth experienced by the PSEi in 2013. (See also: 3 Stock Trading Lessons in 2013)
Displayed below is a graph showing the yearly performance of the PSE index, from 2006 to 2014.
Annual PSE Performance, 2006 to 2014
In the past 9 years, Philippine stocks suffered a setback only once in 2008, when the PSE index lost a staggering 42.70% in value. Still, those who bought stocks during the 2008 mayhem and held their portfolio until today are already reaping great gains, thanks to the power of compounding and long-term investing.
Argentina, China, Venezuela fastest growing stock markets
Growing the fastest out of 81 stock indices tracked by Trading Economics was Argentina’s Buenos Aires Stock Exchange Merval Index (MERVAL) which grew an astounding 59.14%.
The SSE Composite Index of Shanghai, China was second with a year-on-year growth of 52.87%. Rounding up the Top 5 are: Venezuela, Egypt, and India.
Here’s the list of the World’s 10 Best Performing Stock Exchanges in 2014.
Top 10 Highest Gaining Stock Markets in 2014
| Rank | Country | Stock Exchange Index | % Growth in 2014 |
|---|---|---|---|
| 1 | Argentina | MERVAL | 59.14% |
| 2 | China | SSECOMPOSITE | 52.87% |
| 3 | Venezuela | IBVC | 41.01% |
| 4 | Egypt | EGX30 | 32.08% |
| 5 | India | SENSEX | 30.08% |
| 6 | Ukraine | PFTS | 28.75% |
| 7 | Pakistan | KSE100 | 25.47% |
| 8 | Turkey | XU100 | 24.68% |
| 9 | Sri Lanka | CSEALLSHARE | 23.44% |
| 10 | Philippines | PSEi | 22.76% |
Meanwhile, the stock markets of Greece, Portugal, Nigeria, Cyprus and Kuwait are the 5 worst performers last year. Below is the list of the 10 stock exchanges with the biggest declines in 2014.
Top 10 Stock Markets with the Biggest Losses in 2014
| Rank | Country | Stock Exchange Index | % Growth in 2014 |
|---|---|---|---|
| 1 | Greece | ASE | -29.80% |
| 2 | Portugal | PSI20 | -26.83% |
| 3 | Nigeria | NSE30 | -17.29% |
| 4 | Cyprus | CYPRUSGENERAL | -17.05% |
| 5 | Kuwait | KUWAITS.E. | -13.30% |
| 6 | Austria | WBI | -12.37% |
| 7 | Latvia | OMXRIGA | -11.32% |
| 8 | Colombia | IGBC | -10.99% |
| 9 | Hungary | BUX | -10.40% |
| 10 | Oman | MSM30 | -7.70% |
In comparison, other major stock exchanges worldwide had the following one-year returns in 2014:
- United States (Dow Jones Industrial Average): 8.48%
- Japan (Nikkei 225): 7.12%
- Singapore (Straits Times Index): 6.80%
- United Kingdom (FTSE 100): -2.71%
- Germany (DAX): 2.65%
Here’s the list of 81 stock exchanges and their growth (or loss) performance in 2014.
| Country | Stock Exchange Index | % Growth in 2014 | |
|---|---|---|---|
| 1 | Argentina | MERVAL | 59.14% |
| 2 | Australia | S&P/ASX200 | 1.10% |
| 3 | Austria | WBI | -12.37% |
| 4 | Bahrain | BAHRAINALLSHARE | 15.92% |
| 5 | Bangladesh | SEALLSHARE | 12.83% |
| 6 | Belgium | BEL20 | 13.71% |
| 7 | Botswana | BSIDCI | 5.14% |
| 8 | Brazil | BOVESPA | -2.91% |
| 9 | Bulgaria | SOFIX | 6.22% |
| 10 | Canada | S&P/TSX | 7.52% |
| 11 | Chile | IGPA | 3.53% |
| 12 | China | SSECOMPOSITE | 52.87% |
| 13 | Colombia | IGBC | -10.99% |
| 14 | Croatia | CROBEX | -3.09% |
| 15 | Cyprus | CYPRUSGENERAL | -17.05% |
| 16 | Czech Republic | SEPX | -4.32% |
| 17 | Denmark | OMXCOPENHAGEN | 17.56% |
| 18 | Ecuador | ECU | 7.20% |
| 19 | Egypt | EGX30 | 32.08% |
| 20 | Estonia | OMXTALLIN | -7.66% |
| 21 | Euro Area | EUROSTOXX50 | 1.20% |
| 22 | Finland | HEX25 | 5.75% |
| 23 | France | CAC40 | -0.54% |
| 24 | Germany | DAX | 2.65% |
| 25 | Greece | ASE | -29.80% |
| 26 | Hong Kong | HSI | 0.84% |
| 27 | Hungary | BUX | -10.40% |
| 28 | Iceland | SEICEX | 15.04% |
| 29 | India | SENSEX | 30.08% |
| 30 | Indonesia | JCI | 21.15% |
| 31 | Ireland | ISEQ | 15.96% |
| 32 | Israel | TA-25 | 5.85% |
| 33 | Italy | FTSEMIB | 0.23% |
| 34 | Jamaica | JAMAICASE | -5.31% |
| 35 | Japan | NIKKEI225 | 7.12% |
| 36 | Jordan | ASEGENERAL | 5.25% |
| 37 | Kenya | NSE20 | 3.34% |
| 38 | Kuwait | KUWAITS.E. | -13.30% |
| 39 | Latvia | OMXRIGA | -11.32% |
| 40 | Lebanon | MSCILEBANON | 1.46% |
| 41 | Luxembourg | LUXX | 5.27% |
| 42 | Malaysia | FTSEKLCI | -5.19% |
| 43 | Mauritius | SEMDEX | -1.05% |
| 44 | Mexico | IPC | 0.43% |
| 45 | Montenegro | MONEX20 | 15.22% |
| 46 | Morocco | MASI | 5.55% |
| 47 | Netherlands | AEX | 4.93% |
| 48 | New Zealand | NZX50 | 12.78% |
| 49 | Nigeria | NSE30 | -17.29% |
| 50 | Norway | OBX | 5.80% |
| 51 | Oman | MSM30 | -7.70% |
| 52 | Pakistan | KSE100 | 25.47% |
| 53 | Panama | BVPSI | -1.30% |
| 54 | Peru | IGBVL | -6.53% |
| 55 | Philippines | PSEi | 22.76% |
| 56 | Poland | WIG | 0.26% |
| 57 | Portugal | PSI20 | -26.83% |
| 58 | Qatar | QEGENERAL | 18.36% |
| 59 | Romania | BET | 9.07% |
| 60 | Russia | MICEX | -7.15% |
| 61 | Saudi Arabia | TASI | -0.57% |
| 62 | Serbia | BELEX15 | 18.40% |
| 63 | Singapore | STI | 6.80% |
| 64 | Slovakia | SAX | 12.42% |
| 65 | Slovenia | SBITOP | 18.13% |
| 66 | South Africa | FTSE/JSE | 7.57% |
| 67 | South Korea | KOSPI | -4.76% |
| 68 | Spain | IBEX35 | 4.97% |
| 69 | Sri Lanka | CSEALLSHARE | 23.44% |
| 70 | Sweden | OMX30 | 9.87% |
| 71 | Switzerland | SMI | 9.51% |
| 72 | Taiwan | TWSE | 8.08% |
| 73 | Thailand | SET | 15.32% |
| 74 | Tunisia | TUNINDEX | 16.42% |
| 75 | Turkey | XU100 | 24.68% |
| 76 | Ukraine | PFTS | 28.75% |
| 77 | United Arab Emirates | ADXGENERAL | 5.56% |
| 78 | United Kingdom | FTSE100 | -2.71% |
| 79 | United States | DOWJONES | 8.48% |
| 80 | Venezuela | IBVC | 41.01% |
| 81 | Vietnam | VNINDEX | 8.12% |
