According to the latest data released by Assosim, the Italian Association of Financial Intermediaries, in 2016 most Italian stock markets closed with a negative performance despite a strong recovery in December.

Prada is an Italian fashion company, but it is listed in Hong Kong

On the contrary,  the mid cap FTSE Star showed an increase of 4.2%.In the same year the Italian Stock Exchange showed a 22.5% decrease, FTSE Mib decreased by 10.2%,  MOT was 22.28% down, Eurotlx decreased by 17.8% and Himtf was 26.58% down.

In Italy, over the past ten years, stock and bond markets have shown that overall, only those who have invested in SMEs have seen an interesting return on their investments.

This is what emerged from a recent study named “Does investing in Italian capital markets pay? The past decade perspective” conducted by Università Bocconi in collaboration with Equita Sim (here a press release in Italian).

According to the study, despite the stock market as a whole posting a negative performance (Ftse All Share -8,2%), some stocks and sectors have managed to show strong, positive performances.

In particular, Ftse Italia Star recorded a growth on return of investment of 3.3% over a ten-year period.

The study also points out that the Italian equity market would have secured interesting returns on investments if investors had carefully chosen stocks focusing on SMEs operating in the Italian world renowned industrial sectors of excellence (Fashion, Food & Beverage and Automotive, along with emerging players in the field of the e-commerce).

Ftse Star is an index that includes the largest number of successful Italian SMEs operating in a number of strategic Italian industry sectors.

It is an index that has posted an annual buy-and-hold performance of 2% to which a further 2.7% related to dividends pay outs must be added.

massimo morici
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massimo morici

Massimo works as a financial journalist for the monthly newsmagazine ADVISOR, (asset management) and
massimo morici
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