The Bel-20, the index of the 20 most important shares on the Brussels stock exchange, has reached a new record high for the first time in 18 years. On Thursday morning, the Bel-20 stood at 4,760 points. The 2008 banking crisis and the lack of companies that have experienced strong growth since explain why we have had to wait so long.
Bel-20 index of leading Belgian shares reaches record high for the first time in 18 years
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On 23 May 2007, the Bel-20 stood at 4,756.92 points. A record level that remained unsurpassed for more than 18 years. A No long after the record was set the banking crisis began, causing all stock markets all over the world to plummet. The Bel-20, that included banks such as Fortis, Dexia and KBC in its basket of leading shares, suffered particularly badly.
The recovery, after the financial crisis and the debt crisis, was fueled by technology companies and cyclical companies. The latter are companies that are more exposed to the economic cycle than others.
KBC’s Tom Simonts told VRT News that “The Bel-20 relies more on companies that pay attractive dividends. These are mainly value stocks and that is exactly what is the core of the Bel-20's problem. It offers value, but no growth”.