Stock Indices at 31 October 2013 and GDP Forecast

When compared with 2 July 2007 before the Global Financial Crisis (GFC) hit, Dow Jones Industrial Average (DJIA) as at 31 October 2013 surpassed the index back then. This was an increase of 14.8%.

What about other key indices comparing 2 July 2007 against 31 October 2013?

  2 Jul 2007 31 Oct 2013 Change

(%)

Sensex – Mumbai 14,664 21,164 + 44.3
Dow Jones Ind Avg 13,535 15,545 + 14.8
Hang Seng Index 22,151 23,206 + 4.7
London FTSE 6,590 6,731 + 2.1
STI 3,550 3,210 – 9.5
Aust All Ord 6,298 5.420 – 13.9
Nikkei Index 18,146 14,327 – 21.0
Shanghai Composite 3,836 2.141 – 44.1

India, USA, Hong Kong and UK had positive performances. Singapore, Australia, Japan and China have yet to reach the peaks on 2 July 2007. There are rooms for future increases in the indices for these countries.

The next table looks at this year’s year-to-date performances and the GDP growth forecasts for this year. (Source of GDP numbers: World Economic Outlook Report October 2013 by IMF)

  31 Dec 2012 31 Oct 2013 Change

(%)

GDP Forecast for 2013
Nikkei Index 10,395 14,327 + 37.8 1.95 %
Dow Jones Ind Avg 13,104 15,545 + 18.6 1.56 %
Aust All Ord 4,664 5.420 + 16.2 2.47 %
London FTSE 5,897 6,731 + 14.1 1.43 %
Sensex – Mumbai 19,426 21,164 + 8.9 3.79 %
Hang Seng Index 22,656 23,206 + 2.4 2.97 %
STI 3,167 3,210 + 1.3 3.54 %
Shanghai Composite 2,269 2.141 – 5.6 7.60 %

Nikkei, DJIA, Australia All Ordinary and London FTSE were running up very well in that order. Sensex was up 8.9% so far.

Hang Seng and STI moved up slightly in comparison with the rest. There is room to rise? Their GDP growth forecast are still positive but not great compared to past performances.

China’s Shanghai Composite was the only index in the negative territory. This despite that her GDP is forecast to grow at 7.6% for the year. Investors seem not keen on China stock market at this present moment.

With two more months to go till end of 2013, how would the indices be like at the end?

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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