Quarterly Update July 2010
Better Times Ahead But Caution Still RequiredThe first half of 2010 closed on a much brighter note in the financial market compared to last year. The NSE and NAS indices went up by 34% and 33%, espectively,compared to declines of 5% and 2% during the same period last year. However, the upward momentum of share prices was slower compared to the first five months where year on year gains for the NSE and NAS indices were 49% and 55%, respectively.Unfortunately, the situation was not pleasant in international markets where almost all major markets were in decline. The Morgan Stanley Capital International (MSCI) World and MSCI Emerging Markets indices declined by 11% and 10%, respectively. The downward trend is attributed to renewed fears about threats to global economic recovery due to sovereign debt risk in selected European Union member countries. The injection of close to $1 trillion by the EU did little to ease the anxiety of investors but the unveiling of extensive austerity programs later on seemed to provide some confidence about the sustainability of debt repayments.  Read More
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