The Bel-20, the index of the 20 leading shares on the Brussels Stock Exchange, has set a new record, reaching the 6,000-point mark. When the markets opened on Thursday morning, the Bel-20 stood at 6,031 points. “We’re finally at a level where we’re back in the game,” says financial economist Tom Simonts.
Home News
Bel-20 Belgian stock index tops 6,000 points for the first time
Published:
The Bel-20 had already broken the record set on 3 September yesterday, closing the day at 5,979 points. That rise continued today. The Bel-20 reached the 6,000-point mark and, at 9.20 am, the index rose to 6,031 points.
In August last year, the index hit a new record for the first time in 18 years, reaching 4,760 points. This milestone allowed the Bel-20 to put the 2008 financial crisis behind it. Since then, the Bel-20 has continued to perform strongly.
According to Tom Simonts, a financial economist at KBC bank, this strong growth is mainly down to four major companies in the Bel-20: AB InBev, Argenx, KBC and UCB.
“AB InBev posted strong results. The banks, including KBC, continue to perform well. UCB and Argenx, meanwhile, have emerged as leaders in the pharmaceutical and biotech sectors,” Simonts told VRT NEWS.
‘What’s more, the smaller companies are also doing rather well, which is why we’re running at full capacity. Investors can now finally recognise the true value of those companies.’
Traditional frontrunners
Simonts is pleased that the Bel-20 has reached a new record high. But breaking the 6,000-point barrier has an even greater significance.
“This is a ‘finally’ moment. We have finally reached a level where we are on a par with the other indices and have surpassed the level we were at before the financial crisis.”
So, the Bel-20 is back in the running, and that is mainly thanks to “traditional companies”. “In recent years, we have generally stood out on account of our lack of major players.”
“We don’t have any AI champions, chip champions or a tech scene like in the US. Germany, for example, has Siemens Energy as a major player.”
“That put us at a disadvantage, and we’re now making up for it with an abundance of solid companies that are performing well. They may not be tech champions, but they are traditional champions.”
Impact of the mid-term elections
The Belgian index hit a record high, one day after the mid-term elections in the United States. Did those ‘mid-terms’ have an impact?
“The ‘mid-terms’ certainly play a role. They featured prominently in the news yesterday. Since then, attention has shifted away from tech and AI companies, and those ‘blue-chip’ companies are back in the spotlight.”
These ‘blue-chip’ companies are influential, stable businesses in the US. The well-known Dow Jones index comprises 30 such companies.