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The 10 Worst Performing Stock Markets In The World

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While the S&P is set to net investors a double-digit return, not all major stock indices have been positive on the year.

In fact, the worst performing stock market of 2012 fell by over 60 percent.

A few of these nations have banking sectors that are in terrible shape. Some exchanges have suffered due to low liquidity. Others have underperformed as foreign direct investment has plummeted. And an unlucky few have a combination of all of the above.

The list spans markets from all across the globe, though European laggards are the worst of the worst.

All year-to-date returns data is from Bloomberg through December 28..

10. Bahrain Bourse All Share Index: -7.0%

The BB All Share is off nearly two-thirds from its 2008 peak. This exchange has hemorrhaged funds, with its market capitalization decreasing from 7.73 billion to 5.8 billion dinars since January 2011. Aluminium Bahrain BSC has gotten crushed, as its shares are down over 28 percent on the year.

Sources: Bloomberg, Reuters via GulfBase



9. Sri Lanka Colombo Stock Exchange: -7.7%

After three decades of warfare, Sri Lanka's exchange enjoyed robust returns in 2009 and 2010, but the market has been in decline since 2011. Through September, foreign direct investment fell just under 10 percent year-over-year, and less than one percent of the nation's citizens invest in stocks. However, the exchange seems to be ending the year "on a relatively positive note."

Sources: Lanka Business Online, The Island, Sunday Times



8. Mauritius Stock Exchange: -8.5%

The World Bank ranked Mauritius the most competitive nation in Africa.  Nevertheless, it struggles in spite of the country's business-friendly attitude. After posting strong years in 2009 and 2010, the market has been on a near two-year decline.  The central bank is trying to get a handle on inflation, which hit a 2012 high of 4.2 percent in October and is forecasted to increase again next year.

Source: Bloomberg

 



See the rest of the story at Business Insider

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