Madrid's stock market sees steepest half-year dive since 1874
The Madrid Stock Market's general index tumbled by 20.9 percent during the first half of 2008.1 July 2008
MADRID - The Madrid Stock Market's general index tumbled by 20.9 percent during the first half of the year, its worst fall since 1874, when the stock exchange started to measure the share performance of listed Spanish companies.
The nosedive of the general index is greater than that registered in 1898, when Spain lost the Spanish-American War and in 1931, when the country became a republic during a global depression.
Analysts blame a range of factors for the sharp fall in the general index, including the cooling of the Spanish economy, the US subprime crisis and soaring inflation due to higher global crude and commodity prices.
"The markets have behaved poorly," said Antonio López, an analyst at Fortis investment. He blamed "the heavy deceleration of the economy, which nobody expected to be so sharp."
The retreat of Madrid's general index during the period under review is in line with other major European bourses such as the Paris' CAC (down 21 percent) and Frankfurt's DAX (down 20.4 percent).
Meanwhile, Madrid's IBEX-35 index retreated by 20.66 percent during the first six months of the year. This was the worst performance by the blue chip index in close to 20 years.
[El Pais / Expatica]