Cyprus In Comparsion

We have all heard headlines about Cyprus over the last few days, but what do we really know about the Cyprian stock exchange and its components? Below are the individual equities that make up the index including weightings, umber of shares and share price. It is a relatively small index due to the small size and population of the economy itself. The stock index is going to come under increased pressure the longer the discussions take place.

If we look at the performance of the index going back to its high in June 2008 the index itself is down by 97.3% illustrated by the (pink) price change in the below graph. We will put this in comparative terms with a few of the other struggling eurozone states.

The Greek stock index is down 82% over the same period.

 The Portuguese stock index is down 46% over the same period

The Irish stock exchange is down 39% over the same period

From the above charts it is quite clear that Cyprus is lagging behind the rest of the struggling eurozone regions. Although the stock index is not a clear indication of the performance of an economy it does have some significance and it should be noted. Without the help of the EU I am not sure how Cyprus could survive. It is now up to the EU to decide if it is prepared to keep funding the situation in Cyprus, as it has in Greece, Ireland, Portugal and Spain. That decision we will inevitably find out over the coming days.