The Cyprus Stock Exchange (CSE) general index outstripped global counterparts in 2024 by climbing 58.3 per cent, marking the best performance among national stock exchange indices.
This surge was primarily fueled by significant gains in the banking sector, notably a doubling in Hellenic Bank’s share price following its acquisition by Eurobank.
Globally, stock markets flourished, aided by central banks’ lower interest rates aimed at stimulating growth after prior hikes intended to curb inflation.
The easing of monetary policies globally provided a substantial boost to investor confidence, leading to robust growth across various sectors.
In the tech sector, artificial intelligence and semiconductor advancements propelled major indices, with the US NASDAQ experiencing substantial growth, bolstered by companies like NVIDIA, which saw its value leap by 191 per cent to $3.4 trillion, placing it just behind Apple in market valuation.
Despite widespread gains, the French and South Korean markets bucked the trend, closing the year in the red amidst political upheavals that dampened investor sentiment in these regions.
In other financial categories, Bitcoin emerged as the top performer with a 121 per cent increase, outpacing other cryptocurrencies and reaffirming its dominance in the digital currency market.
Traditional commodities like gold and silver also reported strong gains, benefiting from a flight to safety among investors seeking stability amid geopolitical tensions.
Looking ahead to 2025, the financial outlook remains optimistic. This sentiment is supported by expectations of continued albeit slower rate cuts and a boost from the US administration’s proposed tax reductions, poised to enhance corporate profits and further invigorate the stock markets.
The anticipated policy shifts in major economies are expected to maintain the momentum in equity markets, suggesting another year of promising returns for global investors.
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