STOCKS AROUND THE WORLD THIS WEEK
IRELAND: Not pretty. A number of factors contributed to this week's 16-per-cent rout on the Irish stock market - not the least of which was the 67-per-cent decline in Elan Corp., Ireland's largest drug maker. Goldman Sachs dropped the stock from its conviction buy list after Elan and partner Wyeth said their experimental Alzheimer's treatment showed no benefit to the majority of patients. A ratings downgrade on Anglo Irish Bank PLC also put pressure on the market.
CHILE: With all the attention focused on the Brazilian market these days, the Chilean market's impressive year-to-date performance has been largely overlooked. The 40-member IPSA index is flat this year. But it has a way to go to climb back to the high set last October. The index climbed 2 per cent this week.
BRAZIL: The Brazilian market has been one of the best performing global markets this year, which means in practical terms that it has fallen much less than most. Despite worries about further interest rate hikes, the Bovespa index edged up _ per cent this week. Goldman Sachs has suggested that the central bank may boost rates four more times between now and January, which would bring the benchmark lending rate to 15.5 per cent.
SPAIN: Iberia Lineas Aereas de Espana SA, Spain's flagship air carrier that plans to merge with British Airways, provided some lift to the Ibex 35 index this week. Iberia shares climbed from €1.65 to as high as €2.13. The Ibex, which hit a 52-week low close of 11,151.6 on July 15, was flat on the week.
PAKISTAN: July was a tough - but we might say interesting - month on the Pakistani stock market. Mid-month, investors attacked the Karachi Stock Exchange demanding a temporary closing to curb further losses. The government thereupon established an equity market opportunity fund to improve investor confidence. The fund apparently had limited impact as prices continued to fall, giving the benchmark market index a 14-per-cent decline on the month, the biggest slump among the Asian benchmark indexes.
