S&P: Global Equities Shined in 2005

January 6, 2005 (PLANSPONSOR.com) - Global equity markets turned in a strong 2005 performance despite a series of potentially negative events, Standard & Poor's reported.

According to S&P’s year-end global stock market review, the S&P/Citigroup Developed World Index returned 11.71% in 2005 sparked by the performance of Asia-Pacific equity markets, which gained 27.41% for the year. That powerful number dwarfed the 11.08% and 7.86% increases in Europe and North America.

“Investors were able to see past a number of headlines, including inflated energy prices, hurricanes, terrorist bombings, and social unrest, to help equity markets turn in a year of strong performance,” said Nicholas Aninos, analyst at Standard & Poor’s Index Services, in a news release. 

Standard & Poor’s data shows that small-cap stocks outperformed large-cap equities both in relative and discrete terms for all of 2005.  The smaller-cap S&P/Citigroup Extended Market Index bulled ahead by 15.45% while the larger-cap S&P/Citigroup Primary Market Index advanced 10.71%.  The under $2 billion cap-range gained 17.41% versus the 8.86% gain for the over $10 billion cap-range during the year. Also for 2005, the S&P/Citigroup Growth Index bested the Value Index 13.27% versus 10.12%. 

The S&P/Citigroup Emerging Markets Index finished the year up 29.37%.  For the year, emerging market country returns ranged from a 20.40% return in Venezuela to a 150.36% gain in Egypt.  The S&P/Citigroup Global Composite Index, which combines developed and emerging markets, pulled ahead 12.56% in 2005.