Monthly overview of the markets of Status New Shares and Status Finance – August 2009
09.09.2009
The trend for recovery of the markets of Status Finance and Status New Shares continued in August in line with global bourses. Most of the main indices went above their values from the beginning of 2009 and are presently traded at levels from October 2008. These levels confirm the forecasts that after the March slump the worst of the crisis is over.
Serbia and Bulgaria, of the markets of Status New Shares, registered the biggest growth in August. In the previous two months both markets lagged behind other exchanges as the main reason for this loss lies in the lower liquidity and the subsequent risk. The sudden compensation in August narrowed the gap but still the two markets remain to a great extent outside the general tendencies. In case of positive developments in the medium term we expect similar movement specifics of these markets with consecutive periods of relatively low growth and consequent sharp compensation. The Turkish market maintains stable growth rates from the beginning of the spring managing to compensate the losses after the bankruptcy of Lehman Brothers. This reduces its short-term growth potential compared to the remaining markets in southeast Europe but long-term trend remains strongly positive.
The financial sector as one of the worst hit by the crisis logs substantial gains in the process of compensation of previous negative trends. Second quarter reports of most banks confirm that although far from their 2007 levels the effect of the crisis is much less devastating than initial expectations. The more extensive information facilitates a more precise definition of concrete effects on separate banks and countries which results in faster recalculation of the specific risk assigned to each institution. During the month we started reducing the share of Turkish stocks in the portfolio. This market has already compensated the substantial losses from the crisis which reduces its medium term growth potential compared to the other markets of Status Finance. For that reason we increased the share of Bulgarian stocks although it still remains below 10% of assets. We maintain a relatively high level of liquid assets which gives us an opportunity for a quick reaction to attractive opportunities for investments.
Detailed information about the performance of Status New Shares and Status Finance for July 2009 is available in the monthly reports of the funds published in the Documents section of each fund.
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