EE/FSU: Equity market performances in 2010
Overview:
Eastern Europe (EE) and Former Soviet Union (FSU) generally posted positive stock market performances in 2010 although there was considerable divergence by region. In general terms, a good first quarter was offset by a very weak Q2 with some improvement again in the second half of the year. The FSU region fared well whilst South Eastern Europe (SEE) again under-performed. This difference in performance was probably due to a combination of political factors (e.g. a positive reaction to the new government in Ukraine), rising commodity prices (e.g. a more favourable economic outlook in Russia and Kazakhstan) and fiscal tightening required under IMF programs (e.g. negative for growth in Romania). All indices are still well below the values seen in late 2007 however.