PORTUGAL - Portuguese pension funds posted a return of 1.7% in January 2005 on the back of a robust performance from the Portuguese equities market which returned 5.5% during the month, its highest since November 2001.
Latest figures from Watson Wyatt reveal that international bonds also posted positive returns at 3.9%, mainly due to the appreciation of the US dollar.
Other Euro equities returned 2%, while international equities posted a return of 1.9%. Euro public debt (fixed rate) returned 1.3% while other Euro bonds (fixed rate) returned 1%.
“January was a good month, mainly due to the good performance in Portuguese equities which led European bourses with the best performance in January (5.5%) and reaching the highest value since November 2001.
“The financial markets had positive returns, stimulated by companies' results and corporate activity, despite a fall in equities in the USA (some 2.5%) which was explained by a number of key events (a) technology companies having negative results, (b) Federal Reserve President comments about the interest rate increase' and (c) increase in oil price (some 10%) as a consequence of a production cut by OPEC and also bad weather conditions,” said Watson Wyatt in a statement.
The US Dollar registered a gain of 4.5% and interrupted a negative sequence of 5 consecutive months (12% of accumulated losses).
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