While the Russell Global Index reflected a 3.9% gain for December, the comprehensive benchmark of global equities still showed a decline of 42.8% for 2008. Of the more than 10,000 stocks in the index, 90% turned in a negative return for the year.
In the Russell Emerging Markets Index (-55.6%), for example, 98% of all stocks lost value in 2008. The Russell BRIC Index, which comprises stocks in Brazil, Russia, India and China, reflected a loss of 61% and the Russell Emerging Europe Small Cap Index showed a 70.5% decline.
Of the 70 indexes representing individual countries in the Russell Global Index, each showed a double-digit decline ranging from the Russell Vietnam Index (-13.7%) to the Russell Iceland Index (-83.3%). The United States, as measured by the U.S. broad-market Russell 3000 Index, ranked ninth behind Morocco, Tunisia, Japan, Jordan, Colombia, Israel and Switzerland.
In addition to Iceland, seven other country indexes reflected a loss of more than 70% for 2008: Kazakhstan, Cyprus, Ukraine, Russia, Pakistan, Bulgaria and the United Arab Emirates.
“Negative returns dominated the investment landscape in 2008 from emerging markets to developed countries worldwide, including every sector, industry and country measured by the global index,” says Rob Balkema, portfolio analyst for Russell Investments. “The month of December though offered some refuge in the form of positive returns. Nearly every sector and major region in the global index turned upward with particular strength in some emerging markets such as China, where the Russell China Index showed a 10.3% gain for the month.”
Two-thirds of global stocks gained in value for the month, and eight of the nine global sectors showed a positive return. Sector returns ranged from 7.7% for materials and processing to -1.5% for energy. In addition, two industriesgold and health care managementeach increased more than 20%.
Looking at individual countries for the month of December, 10 indexes each reflected a gain greater than 10%, including the Russell Indonesia Index (22%), Russell Korea Index (20.6%) and the Russell Estonia Index (16.8%). At the other end of that list, the Russell Pakistan Index showed a loss of 41.2% for the month.
Within the Russell Developed Index, the U.S. market accounted for eight of the top 10 performing stocks for the month, including the top three: Photronics, ACCO Brands, and ProLogis. Two sectors (health care and materials and processing) tied for the top spot in this index with a gain of 7.2% for the month, while the top three industries are gold (22.2%), cement (22%) and health care management (21.6%).
In the Russell Emerging Markets Index for the month of December, 69% of stocks turned in a positive return. Five of the top 10 performing stocks are in India. All nine sectors show a positive return for the month, ranging from 11.2% for producer durables to 3.5% for energy.
To see the full index, click here.
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