Emerging Stock Markets Factbook 1999 (Global Stock Markets Factbook)

Emerging Stock Markets Factbook 1999

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Copyright © 1999International Finance Corporation2121 Pennsylvania Avenue, N.W.Washington, D.C. 20433U.S.A.

First Printing April 1999

ISBN 0−8213−4403−XSTOCK NO. D14403

All rights reserved. May not be reproduced in whole or in part by any means without the written consent of theInternational Finance Corporation.

This information is based on data obtained from sources that the IFC considers to be reliable, but is notguaranteed as to accuracy and does not purport to be complete.

This information shall not be construed, implicitly or explicitly, as containing any investment recommendationsand, accordingly, the IFC is not registered under the U.S. Investment Advisers Act of 1940. This information doesnot constitute an offer of or an invitation by or on behalf of IFC to purchase or sell any of the shares mentioned,nor should it be considered as investment advice.

The denominations and geographical names in this publication are used solely for the convenience of the readerand do not imply the expression of any opinion whatsoever on the part of the IFC, the World Bank, or otheraffiliates, concerning the legal status of any country, territory, city, area, or of its authorities, or concerning thedelimitation of its boundaries or national affiliation.

The IFC may, from time to time, have a financial interest in the securities mentioned or included in thecalculation of the IFC Indexes.

The Emerging Markets Data Base is a service of IFC's Financial Markets Advisory Department.

Any views expressed herein are those of the authors and do not necessarily represent the views of the WorldBank or the International Finance Corporation.

Published annually in the United States of America break

Preface

This edition of the Emerging Stock Markets Factbook is the thirteenth in the IFC's annual series tracking thedevelopment of equity markets in developing countries. IFC's efforts were the first to pull together in a singlevolume the various time series of market data on the leading stock markets of the developing world.

The Factbook is designed to serve as a reference for institutional investors, fund managers, investment bankers,academics, economists, consultants, and journalists. Many of the tables and charts draw on data from more than


Emerging Stock Markets Factbook 1999 1

75 emerging markets. Additionally, market profiles have been compiled for all 51 of the IFC Index markets in1998.

The Factbook is divided into an introductory section and seven chapters. The introduction includes backgroundinformation on IFC and the IFC indexes. Chapter 1 begins with a description of emerging markets in general andemerging stock market performance and characteristics in particular. Chapter 2 details the performance andcharacteristics of world stock markets since 1989.

Chapter 3 begins the discussion on IFC indexes, with detailed statistics on the IFC Global Indexes. Chapters 4 and5 parallel this discussion, with details on the IFC Investable Indexes and IFC Frontier Indexes.

A much−expanded Chapter 6 incorporates data summaries as well as market, political, and economic analyses forall 33 IFC daily index markets and 18 IFC monthly frontier index markets. Chapter 7 provides data summaries formarkets not currently included in IFC Index coverage. Stock exchange addresses, names of top officials,telephone and fax numbers, and web site addresses can be found in Chapters 6 and 7. Appendices provide sourcesand data notes, investor information, and information on IFC's Emerging Markets Data Base (EMDB).

IFC is proud to continue building its coverage of emerging markets and providing the most complete and accuratedata available. A member of the World Bank Group, IFC is the largest multilateral source of direct loan andequity financing for private sector projects in developing countries. EMDB, recognized as the world's premiersource for reliable and comprehensive information on stock markets in developing countries, serves as a vitalstatistical resource for the international financial community and for IFC in its investment and advisorywork.break

Contents

The International Finance Corporation link

Emerging Markets Data Base link

Evolution of the IFC Indexes for Emerging Markets link

Introduction to the IFC Indexes link

IFC Daily Index Coverage, Base Periods, and Dates of Inclusionlink

IFC Daily Index Coverage Map link

IFC Frontier Index Coverage, Base Periods, and Dates ofInclusion

link

IFC Frontier Index Coverage Map link

Acknowledgments link

1Introduction to Emerging Markets

Relative Characteristics of Emerging Markets

Emerging Market Classification link

World Economic Statistics link

Aggregate Net Long−Term Resource Flows to Emerging Marketslink

World GNP and GNP Per Capita link


Contents 2

Emerging Stock Market Performance

Overview of Emerging Stock Markets in 1998 link

2World Stock Markets

World Stock Market Statistics

World Stock Market Performance, 1998 link

World Stock Market Turnover, 1998 link

World Market Capitalization, 19891998 link

Market Capitalization, Analysis and Summary link

World Value Traded, 19891998 link

World Number of Listed Domestic Companies, 19891998 link

World Rankings of Market Capitalization, Value Traded, andNumber of Listed Domestic Companies, 1998

link

World Ranking of Average Company Size, 1998 link

Local Stock Market Price Indexes

Emerging Markets Local Stock Market Price Indexes, 1998 link

Frontier Emerging Markets Local Stock Market Price Indexes,1998

link

Emerging Markets Local Stock Market Price Indexes, 19891998link

Frontier Emerging Markets Local Stock Market Price Indexes,19891998

link

Currency Exchange Rates per US$

Emerging Markets Currency Exchange Rates per US$, 1998 link

Frontier Emerging Markets Currency Exchange Rates per US$,1998

link

Emerging Markets Currency Exchange Rates per US$, 19891998link

Frontier Emerging Markets Currency Exchange Rates per US$,19891998

link

3IFC Global Indexes

Introduction

Market Weights in the IFCG Composite Index, End−1998 link

Market Concentration in the IFCG Indexes, End−1998 link

Comparative Valuations of the IFCG Indexes, End−1998 link

IFCG Price Indexes

1998 Performance Summary link


Contents 3

1998 High, Low, Close link

Regional vs. Developed Market Performance, 1998 link


IFCG Price Indexes, 1998 link

IFCG Price Indexes, 19891998 link

Statistics of the IFCG Price Indexes link

IFCG Price Index Correlations link

IFCG Total Return Indexes





IFCG Total Return Indexes, 1998 link

IFCG Total Return Indexes, 19891998 link

Statistics of the IFCG Total Return Indexes link

IFCG Total Return Index Correlations link

IFCG Industry Indexes

Industry Weights in the IFCG Composite Index, End−1998 link

Industry Concentration in the IFCG Composite Index, End−1998link

Industry Distribution by Market Cap of IFCG Composite Index,1998

link

Industry Weights by Market Cap of IFCG Composite Index, 1998link

Industry Distribution by Number of Stocks in IFCG CompositeIndex, 1998

link

IFCG Industry Price Indexes, 1998 Performance Summary link

IFCG Industry Price Indexes, 1998 link

IFCG Industry Price Indexes, 19891998 link

IFCG Industry Total Return Indexes, 1998 Performance Summarylink

IFCG Industry Total Return Indexes, 1998 link

IFCG Industry Total Return Indexes, 19891998 link

4IFC Investable Indexes

Introduction

Market Weights in the IFCI Composite Index, End−1998 link

Comparative Valuations of the IFCI Indexes, End−1998 link


Contents 4

IFCI Price Indexes





IFCI Price Indexes, 1998 link

IFCI Price Indexes, 19891998 link

Statistics of the IFCI Price Indexes link

IFCI Price Index Correlations link

IFCI Total Return Indexes





IFCI Total Return Indexes, 1998 link

IFCI Total Return Indexes, 19891998 link

Statistics of the IFCI Total Return Indexes link

IFCI Total Return Index Correlations link

IFCI Industry Indexes

Industry Weights in the IFCI Composite Index, End−1998 link

Industry Concentration in the IFCI Composite Index, End−1998link

Industry Distribution by Market Cap of IFCI Composite Index,1998

link

Industry Weights by Market Cap of IFCI Composite Index, 1998link

Industry Distribution by Number of Stocks in IFCI CompositeIndex, 1998

link

IFCI Industry Price Indexes, 1998 Performance Summary link

IFCI Industry Price Indexes, 1998 link

IFCI Industry Price Indexes, 19891998 link

IFCI Industry Total Return Indexes, 1998 Performance Summarylink

IFCI Industry Total Return Indexes, 1998 link

IFCI Industry Total Return Indexes, 19891998 link

5IFC Frontier Indexes

Introduction


Contents 5

Market Weights in the IFCG Frontier Composite Index,End−1998

link


IFCG Frontier Price Indexes, 1998 link

IFCG Frontier Price Indexes, 19951998 link

IFCG Frontier Total Return Indexes, 1998 link

IFCG Frontier Total Return Indexes, 19951998 link

Comparative Valuations of the IFCG Frontier Indexes, End−1998link

6IFC Index Market Profiles

Market and Data Summaries

Argentina link

Bangladesh link

Botswana link

Brazil link

Bulgaria link

Chile link

China link

Colombia link

Cote d'Ivoire link

Croatia link

Czech Republic link

Ecuador link

Egypt link

Estonia link

Ghana link

Greece link

Hungary link

India link

Indonesia link

Israel link

Jamaica link

Jordan link

Kenya link


Contents 6

Korea link

Latvia link

Lithuania link

Malaysia link

Mauritius link

Mexico link

Morocco link

Nigeria link

Pakistan link

Peru link

Philippines link

Poland link

Portugal link

Romania link

Russia link

Saudi Arabia link

Slovakia link

Slovenia link

South Africa link

Sri Lanka link

Taiwan, China link

Thailand link

Trinidad & Tobago link

Tunisia link

Turkey link

Ukraine link

Venezuela link

Zimbabwe link

7Other Equity Market Profiles

Data Summaries for Markets Not Included in IFC Index MarketCoverage in 1998

Armenia link

Azerbaijan link

Bahrain link


Contents 7

Barbados link

Bolivia link

Costa Rica link

El Salvador link

Fiji link

Guatemala link

Honduras link

India—Calcutta link

India—Delhi link

India—Madras link

India—National link

India—OTC link

Iran link

Kazakhstan link

Lebanon link

Macedonia link

Malta link

Moldova link

Mongolia link

Namibia link

Nepal link

Oman link

Panama link

Paraguay link

Swaziland link

Uruguay link

Uzbekistan link

WestBank and Gaza link

Zambia link

Appendix 1Sources and Notes

Stock Market Reference List link

Notes on Macroeconomic Data link

Currency Notes link


Contents 8

Standard Industrial Classification (SIC) Codes link

Appendix 2Investor Information

Foreign Investment Ceiling for Listed Stocks in EmergingMarkets

link

Withholding Taxes in Emerging Markets link

Benchmarks for Settlement, Safekeeping, and Operational Risklink

Global Trading Costs link

Investment Regulations Summary for Entering and ExitingEmerging Markets

link

Appendix 3IFC's Emerging Markets Data Base

EMDB Publications and Products link

Subscription Information link

News Service Access to Indexes link

The International Finance Corporation

The International Finance Corporation (IFC) is the world's largest multilateral source of financing for privateenterprise in emerging economies. Its mandate is to promote the growth of productive and profitable privateenterprises in its developing member countries.

A member of the World Bank Group, IFC is owned by 174 countries. Since its establishment in 1956, IFC hascommitted more than $23 billion in financing for its own account and has arranged $17 billion in syndications andunderwriting for 2,067 businesses in 134 developing countries.

IFC supports its clients with a full array of financial and advisory services. Project financing is offered throughloans, equity, and specialized financial instruments such as hedging and swap facilities. IFC mobilizes additionalfinancing through loan syndications and securities underwritings.

Through its advisory services and technical assistance, the Corporation helps private businesses increase theirchances of success, and assists governments in creating environments that encourage private investment. IFC'sCentral Financial Markets Advisory Department has been at the forefront of the Corporation's efforts to increasethe flow of portfolio investment to the developing world. Beginning with the Korea Fund in 1984, IFC hassponsored or invested in more than 30 collective investment vehicles such as country, regional, and global funds.

Emerging Markets Data Base

The Emerging Markets Data Base (EMDB) serves as a vital statistical resource for IFC and the internationalfinancial community in its investment and advisory work. Now in its second decade, the data base has gainedrecognition as the world's premier source for reliable and comprehensive information and statistics on stockmarkets in developing countries. With information collected since 1975, the data base covers 51 markets,providing regular updates on almost 2,300 stocks comprising its IFC Global Index series and almost 1,200 stocksin its IFC Investable Index series.


The International Finance Corporation 9

Using a sample of stocks in each market, IFC calculates indexes of stock market performance designed to serve asbenchmarks that are consistent across national boundaries. This eliminates the inconsistencies that make itdifficult to compare locally−produced indexes with differing methodologies. Monthly indexes are available fromthe end of 1975, weekly indexes from the end of 1988, and daily indexes from October 1995.

EMDB products are available in computerized form and as publications. The data base provides three levels ofcomputerized data: comprehensive data on individual stocks covered in all markets; data series for each indexcomputed; and data series for each market covered. Delivery options and information on publications aredescribed in Appendix 3. EMDB also maintains a comprehensive emerging markets web site (www.ifc.org/emdb).break

Guayaquil Stock Exchange in EcuadorPhoto taken by Carlos Julio Gonzalez

Evolution of the IFC Indexes for Emerging Markets

IFC began producing its own standardized stock indexes for developing countries in mid−1981. The initiative wastaken in response to the need for better means to evaluate the performance of these stock markets than local stockprice indexes, which are each calculated in their own way and based on stocks selected by different criteria. Withcommon data structures, IFC's own indexes could also be easily linked into composite, regional, and industryindexes, which could better measure return and diversification benefits from broad−based emerging marketinvestment.

The original IFC indexes were calculated only once a year, used month−end prices, were based on the 10 to 20most active stocks in each of 10 emerging markets, and were equally weighted and available on a "price only" andtotal return basis. Nine of the 10 markets had a history back to December 1975; one (Jordan) had a base inJanuary 1978, when the Amman Financial Market first opened. In addition to individual market indexes, IFCprepared a Composite Index. Gradually, calculation periods increased to once a quarter using month−end prices.

In late 1985, in response to growing interest in emerging markets among the international fund managementcommunity (which was due in part to information conveyed by the original IFC indexes), IFC decided to revampthe methodology it used from equal weighting to market capitalization weighting, improve the timeliness ofcalculating its month−end indexes from a quarterly lag to a one−month lag, expand the number of stocks covered,and increase the number of markets covered from 10 to 17. IFC also added regional indexes for Latin Americaand Asia to supplement an all−market Composite Index.


Evolution of the IFC Indexes for Emerging Markets 10

http://www.ifc.org/emdb

The new IFC indexes launched in January 1987 proved very popular with IFC's client base. Other markets wereadded to IFC coverage in 1989 (Portugal and Turkey) and 1990 (Indonesia). In response to user demand, IFCagain improved the timeliness of index calculation from month−end (with a considerable lag) to week−end (witha one−week lag), beginning in 1988.

From 1988 until 1992, IFC devoted its index efforts to expanding the number of stocks covered in the indexes andadding to the number of data variables available for each stock. In mid−1991, IFC also released its IFC Industryindexes, which sorted the stocks of the IFC Composite Index into their respective sector and industry categories.

By 1992, the need for more sophisticated indexes for institutional investment in emerging markets had becomepressing. IFC responded by tightening features of its basic index methodology and by introducing a new set ofindexes in March 1993. These indexes, called the IFC Investable indexes, were designed specifically to bebenchmarks for international portfolio managers. The former series of IFC indexes were renamed the IFC Globalindexes to distinguish them from the new series. In Fall 1995, IFC began calculating the IFCG and IFCI Indexseries on a daily basis.

In January 1996, IFC began adjusting its indexes for cross−holding of shares. The adjustments eliminateddistortions caused by double−counting of share capitalization and thereby reduced the weights of several IFCindex stocks and markets where cross−holding is prevalent.

At the same time, IFC began excluding government holdings that accounted for more than 10 percent of an indexconstituent's total market capitalization. Taken together, adjustments for cross−holdings and governmentownership helped IFC more accurately approximate free float.

In September 1996, IFC began calculating monthly indexes for 14 "frontier" markets—Bangladesh, Botswana,Bulgaria, Cote d'Ivoire, Ecuador, Ghana, Jamaica, Kenya, Lithuania, Mauritius, Slovakia, Slovenia, Trinidad &Tobago, and Tunisia. In December 1995, IFC introduced a global frontier composite index with monthlycoverage.

In early 1999, IFC introduced a new data feature to the EMDB 2000 product, the BARRA TED consensusearnings module. Produced in conjunction with BARRA's The Estimate Directory, the module adds brokers'one−year and two−year consensus net profits, earnings−per−share, and dividend per−share forecasts for almost allIFC Index constituent companies to EMDB 2000.

Also of note in 1999 is the IFC's first "graduation" of an index market. On March 31, 1999, Portugal was removedfrom both the IFC Global and Investable indexes. IFC is pleased to have chronicled the market's journey and isproud to see it transition to "developed market" status.

Detailed descriptions of historical as well as on−going changes to the IFC indexes can be found at the EmergingMarkets Data Base website (www.ifc.org/emdb ) in the form of special announcements and technical notes.break

Introduction to the IFC Indexes

The IFC Global and IFC Investable indexes have many common features. Both series are market capitalizationweighted, with period data linked by the chained−Paasche method. Both series are calculated on a price and atotal return basis, in local currency and U.S. dollar terms. IFC prepares composite, regional, sector, and industryindexes for each series. Calculations of all IFC indexes include the preparation of such valuation ratios asPrice−Earnings, Price−Book Value, and Cash Dividend Yield.


Introduction to the IFC Indexes 11


The IFC indexes have become widely accepted in the international investment community, forming the basis forindex funds (funds managed so as to replicate an index's return) and structured financial instruments such asswaps and indexlinked warrants.

IFC Global Indexes

The IFC Global (IFCG) indexes are the core of the IFC family of emerging market indexes. All of the constituentsof the IFC Industry and IFC Investable indexes are selected from the constituents of IFC Global indexes; a stockmust qualify for an IFCG Index to be considered for inclusion in any other IFC Index.

IFCG indexes are intended to represent the performance of the most active stocks in their respective stockmarkets, and to be the broadest possible indicator of market movements. In order to ensure that the indexescapture the real market, the target aggregate market capitalization of IFCG Index constituents for 1994 forward is60% to 75% of the total capitalization of all listed shares on the local stock exchange.

IFCG indexes are built from the "bottom up", that is, IFC analysts do not look at composite, regional or industrybalances in overall market capitalization in determining stock coverage for each IFCG Index. For instance, IFCdoes not attempt to require that Argentina's share of total emerging market capitalization is represented in theIFCG Composite Index, or that the share of the Argentine oil industry in the capitalization of the Bolsa de Valoresde Buenos Aires is replicated in the IFCG Argentina Index. Selection guidelines are described in The IFCIndexes, which can be obtained by contacting EMDB or visiting the EMDB website at www.ifc.org/emdb .

Once a market is qualified as "emerging" (see Chapter 1) and IFC views the market as appropriate for an IFCindex, EMDB market analysts begin the stock selection process. This begins with a survey of the market and alllisted companies and shares, and is repeated each year during an annual review process.

The IFCG Composite and the IFCG Regional indexes consist of all the constituents of the respective individualmarket IFCG indexes, with any new IFCG indexes being added to the these indexes according to pre−announcedschedules.

IFC Investable Indexes

These indexes are designed to measure the type of returns foreign portfolio investors might receive from investingin emerging market stocks that are legally and practically available to them.

The calculation methodology for the IFCI indexes is the same as for the IFCG (i.e., market capitalizationweighting, chained−Paasche method of calculation, and price and total return series) applied to a subset of IFCGindex constituents that IFC has determined to be "investable," that is, stocks which are available to foreigninstitutional investors, and which pass screens for minimum size and liquidity.

IFC Industry Indexes

While most analyses of emerging stock markets focus on country or regional−level factors and index movements,IFC recognizes that industry analysis is also a valuable tool in the international portfolio selection process.Accordingly, IFC codes the stocks in its Emerging Markets Data Base by sector and industry to permit creation ofthe IFC Industry indexes.

The IFC Industry indexes are subsets of the IFCG and IFCI Composite indexes—that is, IFC calculates bothglobal and investable industry indexes. As a matter of standard practice, the industry indexes are prepared only ona composite index basis. IFC has not prepared regional or market−level industry indexes because the number ofstocks included in some of these categories are too few to generate significant statistics. If a market's securities


IFC Global Indexes 12


http://www.ifc.org/emdb.

have not yet been added to an IFC Composite Index, they are not eligible for an IFC Industry Index.

IFC publishes nine sector and 23 industry indexes for both the IFCG and the IFCI Industry iIdex series. The ninesector indexes capture all the stocks in the composite indexes, while the 23 industry indexes focus on the mostsignificant industries represented in those indexes.break

IFC Daily Index Coverage, Base Periods, and Dates of Inclusion

Coverage Dates of Inclusion

Global Indexes (IFCG) Investable Indexes (IFCI)

Monthly Weekly Daily

Baseperiod(=100.00)

CompositeIndex

LatinAmericaIndex

AsiaIndex

EMEAIndex

Baseperiod(=100.00)

CompositeIndex

LatinAmericaIndex

AsiaIndex

EMEAIndex

Latin America

Argentina Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 Dec−84 − − Dec−88 Dec−88 Dec−88 − −

Brazil Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 Dec−84 − − Dec−88 Dec−88 Dec−88 − −

Chile Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 Dec−84 − − Dec−88 Dec−88 Dec−88 − −

Colombia Dec−84 Dec−88 Oct−95 Dec−84 Dec−84 Dec−84 − − Feb−91 Feb−91 Feb−91 − −

Mexico Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 Dec−84 − − Dec−88 Dec−88 Dec−88 − −

Peru Dec−92 Dec−92 Oct−95 Dec−92 Jan−94 Jan−94 − − Dec−92 Jan−94 Jan−94 − −

Venezuela Dec−84 Dec−88 Oct−95 Dec−84 Dec−84 Dec−84 − − Jan−90 Jan−90 Jan−90 − −

Asia

China Dec−92 Dec−92 Oct−95 Dec−92 Oct−95 − Oct−95 − Dec−92 Oct−95 − Oct−95 −

India Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 − Dec−84 − Nov−92 Nov−92 − Nov−92 −

Indonesia Dec−89 Sep−90 Oct−95 Dec−89 Dec−89 − Dec−89 − Sep−90 Sep−90 − Sep−90 −

Korea Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 − Dec−84 − Jan−92 Jan−92 − Jan−92 −

Malaysia* Dec−84 Dec−88 Oct−95 Dec−84 Dec−84 − Dec−84 − Dec−88 Dec−88* − Dec−88* −

Pakistan Dec−84 Mar−91 Oct−95 Dec−84 Dec−84 − Dec−84 − Mar−91 Mar−91 − Mar−91 −

Philippines Dec−84 Dec−88 Oct−95 Dec−84 Dec−84 − Dec−84 − Dec−88 Dec−88 − Dec−88 −

Sri Lanka Dec−92 Dec−92 Oct−95 Dec−92 Jan−94 − Jan−94 − Dec−92 Jan−94 − Jan−94 −

Taiwan, China Dec−84 Dec−88 Oct−95 Dec−84 Dec−84 − Dec−84 − Jan−91 Jan−91 − Jan−91 −

Thailand Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 − Dec−84 − Dec−88 Dec−88 − Dec−88 −

Europe


IFC Daily Index Coverage, Base Periods, and Dates of Inclusion 13

Czech RepublicDec−93 Dec−93 Oct−95 Dec−93 Jan−96 − − Dec−95 Dec−93 Jan−96 − − Jan−96

Greece Dec−75 Dec−88 Oct−95 Dec−84 Dec−84 − − Dec−95 Dec−88 Dec−88 − − Dec−88

Hungary Dec−92 Dec−92 Oct−95 Dec−92 Apr−94 − − Dec−95 Dec−92 Apr−94 − − Apr−94

Poland Dec−92 Dec−92 Oct−95 Dec−92 Apr−94 − − Dec−95 Dec−92 Apr−94 − − Apr−94

Portugal Jan−86 Dec−88 Oct−95 Jan−86 Jan−86 − − Dec−95 Dec−88 Dec−88 − − Dec−88

Russia Dec−95 Dec−95 Dec−95 Dec−95 Jan−97 − − Dec−95 Feb−97 Nov−97 − − Nov−97

Slovakia Dec−95 Feb−97 Feb−97 Dec−95 Nov−97 − − Dec−95 Feb−97 Nov−97 − − Nov−97

Turkey Dec−86 Dec−88 Oct−95 Dec−86 Dec−86 − − Dec−95 Aug−89 Aug−89 − − Aug−89

Mideast/Africa

Egypt Dec−95 Dec−95 Dec−95 Dec−95 Jan−97 − − Dec−95 Feb−97 Nov−97 − − Nov−97

Israel Dec−96 Jan−97 Feb−97 Dec−96 Nov−97 − − Dec−95 Dec−96 Nov−97 − − Nov−97

Jordan Dec−78 Dec−88 Oct−95 Dec−84 Dec−84 − − Dec−95 Dec−88 Dec−88 − − Dec−88

Morocco Dec−95 Dec−95 Dec−95 Dec−95 Jan−97 − − Dec−95 Feb−97 Nov−97 − − Nov−97

Nigeria Dec−84 Jul−93 Oct−95 Dec−84 Dec−84 − − Dec−95 − − − − −

Saudi Arabia Dec−97 Dec−97 Dec−97 Dec−97 Nov−98 − − Nov−98 − − − − −

South Africa Dec−92 Dec−92 Oct−95 Dec−92 Apr−95 − − Dec−95 Dec−92 Apr−95 − − Apr−95

Zimbabwe Dec−75 Jul−93 Oct−95 Dec−84 Dec−84 − − Dec−95 Jun−93 Apr−94 − − Apr−94

Note: Malaysia was dropped from the IFC Investable Composite and Asia indexes on September 30, 1998.

IFC Daily Index Coverage Map:(World Bank, March 1999)


IFC Daily Index Coverage Map: (World Bank, March 1999) 14

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this mapdo not imply, on the part of The World Bank Group, any judgmnet on the legal status of any territory, or any endorsement or acceptance of such boundaries.

IFC Frontier Index Coverage, Base Periods, and Dates of Inclusion

Coverage Dates of Inclusion

Global Indexes (IFCG) Investable Indexes (IFCI)

Monthly Weekly Daily

Baseperiod(=100.00)

CompositeIndex

LatinAmericaIndex

AsiaIndex

EMEAIndex

Baseperiod(=100.00)

CompositeIndex

LatinAmericaIndex

AsiaIndex

EMEAIndex

FrontierMarkets

Bangladesh Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Botswana Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Bulgaria Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Cote d'Ivoire Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Croatia Dec−97 − − Dec−97 Dec−97* − − − − − − − −

Ecuador Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Estonia Dec−97 − − Dec−97 Dec−97* − − − − − − − −

Ghana Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Jamaica Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Kenya Dec−95 − − Dec−95 Dec−95* − − − − − − − −


IFC Frontier Index Coverage, Base Periods, and Dates of Inclusion 15

Latvia Dec−97 − − Dec−97 Dec−97* − − − − − − − −

Lithuania Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Mauritius Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Romania Dec−97 − − Dec−97 Dec−97* − − − − − − − −

Slovenia Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Trinidad &Tobago

Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Tunisia Dec−95 − − Dec−95 Dec−95* − − − − − − − −

Ukraine Dec−97 − − Dec−97 Dec−97* − − − − − − − −

Note: Date of inclusion in the IFCG Frontier Composite Index.

IFC Frontier Index Coverage Map:(World Bank, March 1999)

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this mapdo not imply, on the part of The World Bank Group, any judgmnet on the legal status of any territory, or any endorsement or acceptance of such boundaries.

Acknowledgments

EMDB Staff

Management Group


IFC Frontier Index Coverage Map: (World Bank, March 1999) 16

Teresa BargerPeter WallBetsy Lay, staff assistant

Publications/WebsiteGraeme Littler, managing editorLisa Balcazar, graphic designerSteven Qualiana, copy editor

Market AnalystsWilliam V. Todd, senior market analystMikhail BelikovMiguel BuckenmeyerBrian CasabiancaEnrique EstebanIrina KulishDerek LachmanShannon LaughlinNatalya Tverskaya, Factbook coordinatorSara Ugarte

Database SystemsKyuee−Ha Pahk, head—database systemsJong S. KimHwajung LeeAnju NundyAli Sher

Index/Derivatives ProductsMadhumita Dutta−Sen, head—new productsMari Ishii, head—fixed−income projectJin K. Du, analyst—fixed−income project

Quantitative Services and Client RelationsSteven Banowit, head—quantitative services and client relationsRyan Carrier, marketing officerStephanie Hughes, client relations officerAndré Léger, client relations officer

Stock Exchanges

IFC conducts an annual survey of the world's stock exchanges as the basis for the figures presented in thisFactbook. IFC acknowledges the contribution made by the stock exchanges listed in the Stock Market ReferenceList in Appendix 1.

Correspondents

IFC wishes to thank its network of correspondents for additional information in this Factbook: break



Argentina Banco Roberts

Bangladesh Equity Resources Ltd.

Botswana Stockbrokers Botswana Ltd.

Brazil Lopes Filho & AssociadosConsultores de Investimentos

Bulgaria Global Finance

Chile Julio Salas M Y Asociados

China Stock Exchange ExecutiveCouncil

Colombia Corredores Asociados S.A.

Cote d'Ivoire Hudson Finance

Croatia CA IB Securities

Czech Republic Zivnostenska Banka,Prague Stock Exchange

Ecuador Bolsa de Valores de Guayaquil

Egypt EFG−Hermes

Estonia Talinvest Suprema Securities

Ghana Gold Coast Securities Ltd.

Greece Alpha Brokerage S.A.

Hungary Budapest Stock Exchange,Concorde Securities

India Crisil Research & InformationServices

Indonesia Institute for Economic andFinancial Research

Israel Bank Hapoalim

Jamaica Barita Investments Ltd.

Jordan Amman Financial Market

Kenya Loita Asset Management Ltd.

Korea Korea Securities Finance Corp.

Latvia Riga Stock Exchange

Lithuania VB Vilfima Securities

Malaysia Maxis Sdn. Bhd.

Mauritius Newton Securities Ltd.

Mexico Casa de Bolsa Bancomer S.A.

Morocco Upline Securities S.A.



Nigeria Securities Transactions & TrustCo.

Pakistan Jahangir Siddiqui Ltd.

Peru G&B Sociedad Agente de Bolsa

Philippines Technistock Corporation

Poland BRE BrokersWarsaw Stock Exchange

Portugal Banco Finantia

Romania Bucharest Investment Group,RASDAQ Trading System,Bucharest Stock Exchange

Russia Skate−Press Consulting Agency

Saudi Arabia Saudi Arabian Monetary Agency

Slovakia CA IB Securites a.s., o.c.p.

Slovenia CA IB Securites a.s., o.c.p.

South Africa HSBC Simpson McKie

Sri Lanka Eagle NDB Fund ManagementLtd.

Taiwan, China Wellphone Securities

Thailand Mutual Fund Public Co. Ltd.

Trinidad & Tobago Fleming Ansa Merchant BankLtd.

Tunisia Tunisie Valeurs

Turkey TEB Ekonomi Arastirmalasi A.S.

Ukraine Finance and Credit Investment,PFTS Trading System

Venezuela Merinvest

Zimbabwe Sagit Stockbrokers (Pvt.) Ltd.

1—Introduction to Emerging Markets

Emerging Market Classification

The term "emerging market" implies a stock market that is in transition, increasing in size, activity, or level ofsophistication. Most often the term is defined by a number of parameters that attempt to assess a stock market'srelative level of development and / or an economy's level of development.


1— Introduction to Emerging Markets 19

In general, IFC classifies a stock market as "emerging" if it meets at least one of two general criteria: (i) it islocated in a low− or middle−income economy as defined by the World Bank, and (ii) its investable marketcapitalization is low relative to its most recent GDP figures.

Until 1995, IFC's definition of an emerging stock was based entirely on the World Bank's classification of low−and middle−income economies. If a country's GNP per capita did not achieve the World Bank's threshold for ahigh−income country, the stock market in that country was said to be "emerging." More recently, this definitionhas proved to be less than satisfactory due to wide fluctuations in dollar−based GNP per capita figures.Dollar−based GNP figures have been significantly impacted by severe swings in exchange rates, especially inAsia. Moreover, reported GNP figures, which take significant time to prepare, are often out−of−date by the timethey are released.

Accordingly, IFC has adopted new criteria for a market to graduate from index coverage. To graduate from indexcoverage, GNP per capita for an economy should exceed the World Bank's upper income threshold for at leastthree consecutive years. The three year minimum limits the possibility that the GNP per capita level is biased byan overvalued currency.

For a new market to be included in IFC index coverage, the market must be located in an economy whose GNPper capita places it in the World Bank's lower and middle income classifications in at least one of the last threeyears. Based on 1997 data, economies with a GNP per capita of $9,656 and above were classified as high incomecountries.

Another typical characteristic of an emerging stock market is its relatively small investable market capitalizationrelative to gross domestic product. Investable market capitalization is a market's capitalization after removingholdings not truly "in the market" for foreign portfolio investors. Non−investable holdings include, but are notlimited to, large block holdings and parts of companies that are inaccessible due to foreign investment limits. Fora market to graduate from index coverage it should have an investable market capitalization−to−GDP ratio nearthe average of markets commonly accepted as developed for three consecutive years.

In summary, for a market to graduate from IFC Index coverage two criteria must be met: i) GNP per capita mustbe in the high income economy range for three consecutive years, and ii) the investable market capitalization toGDP ratio must be near the average of developed markets for three consecutive years. New markets being addedto IFC Index coverage must have GNP per capita levels below the upper income economy threshold defined bythe World Bank in at least one of the last three years.

Stock markets that retain or introduce investment restrictions such as foreign limits, capital controls, extensivegovernment involvement with listed companies, and other legislated restraints on market activity, particularly onforeign investors, are generally considered emerging markets. Pervasive investment restrictions on foreignportfolio investment should not exist in developed stock markets, and their presence is a sign that the market isnot yet "developed."

There are also many qualitative features to consider about specific stock markets. Areas such as operationalefficiency of stock markets, quality of market regulation, supervision and enforcement, corporate governancepractices, minority shareholder rights, transparency, and level of accounting standards are all importantcharacteristics for investors to consider in their tolerance for any specific emerging market exposure.break

World Economic Statistics 1997


World Economic Statistics 1997 20

GNP /a GNP per capita Agriculture InvestmentAverageannualinflationrate

Currentaccountbalance

Totalexternaldebt

Economy

US$millions1997

US$ a/1997

PPP / bIntl.dollars1997

Avg.annual realgrowth, %1990−97

% of GDP1997

% of GDP1997

%1990−97

% of GNP1997

US$millions1997

Afghanistan .. .. c .. .. .. .. .. .. ..

Albania 2,540 760 2,170 d 2.2 62.6 12.2 58.1 −11.1 706

Algeria 43,927 1,500 4,250 d −1.6 11.4 25.7 23.8 .. 30,921

American Samoa .. .. e .. .. .. .. .. .. ..

Andorra .. .. f .. .. .. .. .. .. ..

Angola 3,012 260 820 d −10.0 9.3 24.7 1,091.4 42.9 10,160

Antigua andBarbuda

489 7,380 8,650 1.8 3.8 46.6 2.6 −0.1 ..

Argentina 319,293 8,950 10,100 4.2 6.6 20.1 12.2 −3.1 123,221

Armenia 2,112 560 2,540 −10.7 40.6 9.4 482.8 −18.6 666

Aruba .. .. f .. −0.6 .. .. 4.5 .. ..

Australia 382,705 20,650 19,510 2.4 3.2 20.2 1.7 −3.2 ..

Austria 225,373 27,920 22,010 1.1 1.4 24.0 2.6 −2.2 ..

Azerbaijan 3,886 510 1,520 −16.0 21.9 28.1 447.8 −18.2 504

Bahamas, The .. .. f .. −2.0 .. .. 2.9 −7.0 ..

Bahrain .. .. e .. 2.6 0.9 5.4 1.2 10.2 ..

Bangladesh 44,090 360 1,090 3.3 23.8 20.9 3.6 −2.2 15,125

Barbados .. .. e .. −0.9 § § 0.8 5.2 644

Belarus 22,082 2,150 4,820 −5.6 14.1 25.7 561.4 −3.5 1,162

Belgium 272,382 26,730 23,090 1.3 1.2 17.6 2.6 5.6 ..

Belize 614 2,670 4,080 0.3 23.5 23.6 3.7 −6.1 383

Benin 2,227 380 1,260 1.7 38.4 18.5 10.6 .. 1,624

Bermuda .. .. f .. .. .. .. .. .. ..

Bhutan 315 430 .. 2.0 37.6 42.7 9.7 −15.8 89

Bolivia 7,564 970 2,810 2.0 16.3 18.7 10.4 −8.8 5,248

Bosnia andHerzegovina

.. .. c .. .. .. .. .. .. ..

Botswana 5,070 3,310 7,430 1.3 3.4 25.9 10.2 12.3 562



Brazil 784,044 4,790 6,350 1.9 8.1 21.3 475.7 −4.1 193,663

Brunei .. .. f .. −2.1 2.7 .. 1.6 .. ..

Bulgaria 9,750 1,170 3,870 −2.0 23.3 11.8 109.5 4.4 9,858

Burkina Faso 2,579 250 1,000 d 0.8 35.4 25.4 6.9 .. 1,297

Burundi 924 140 620 d −5.9 53.3 6.8 10.7 0.4 1,066

Cambodia 3,162 300 1,290 d 2.7 51.1 16.1 37.8 −6.9 2,129

Cameroon 8,610 620 1,770 −3.3 40.9 16.2 6.4 −1.3 9,293

Canada 594,976 19,640 21,750 0.8 § 17.6 1.4 −1.5 ..

Cape Verde 436 1,090 2,950 d 1.0 8.7 34.2 5.3 −7.0 220

Cayman Islands .. .. f .. .. .. .. .. .. ..

Central AfricanRepublic

1,104 320 1,310 d −1.0 54.1 9.0 5.9 .. 885

Chad 1,629 230 950 d 1.0 38.8 19.4 7.3 .. 1,027

Channel Islands .. .. f .. .. .. .. .. .. ..

Chile 70,510 4,820 12,240 6.4 7.5 26.9 10.2 −5.3 31,440

China 1,055,372 860 3,070 10.0 18.7 38.2 11.2 3.3 146,697

Hong Kong, China/ g

163,834 25,200 24,350 3.3 0.1 34.5 6.7 −1.5 ..

Colombia 87,125 2,180 6,570 2.6 11.5 18.8 22.4 −5.9 31,777

(table continued on next page)

(table continued from previous page)

World Economic Statistics1997 (Cont.)



Totalexternaldebt

Economy

US$millions1997

US$ a/1997



% of GDP1997

% of GDP1997

%1990−97

% of GNP1997

US$millions1997

Comoros 209 400 1,530 d −3.1 38.7 21.3 3.9 −8.8 197

Congo, Dem. Rep. 5,201 110 760 d −9.6 57.9 7.1 2,012.8 .. 12,330

Congo, Rep. 1,827 670 1,290 −2.9 9.5 26.0 8.9 −11.0 5,071

Costa Rica 9,275 2,680 6,510 2.3 14.7 26.8 18.0 −2.7 3,548



Côte d'Ivoire 10,152 710 1,690 0.9 27.3 16.0 9.3 0.3 15,609

Croatia 19,343 4,060 4,930 2.7 12.4 14.8 218.1 −4.5 6,842

Cuba .. .. h .. .. .. .. .. .. ..

Cyprus .. .. f .. 2.6 § § 4.2 −2.5 ..

Czech Republic 53,952 5,240 10,380 −0.3 § 33.9 17.1 −6.3 21,456

Denmark 184,347 34,890 23,450 2.5 4.0 19.4 1.9 0.5 ..

Djibouti .. .. h .. .. 3.6 9.5 4.6 −4.7 284

Dominica 225 3,040 4,020 0.7 20.5 33.0 3.7 −16.9 98

Dominican Republic 14,148 1,750 4,690 3.5 12.4 24.5 11.5 −0.8 4,239

Ecuador 18,785 1,570 4,700 0.9 12.1 20.2 33.3 −3.8 14,918

Egypt, Arab Rep. 72,164 1,200 3,080 2.8 17.7 17.7 10.5 3.8 29,849

El Salvador 10,704 1,810 2,860 3.5 12.9 15.0 9.8 0.9 3,282

Equatorial Guinea 444 1,060 .. 12.1 23.1 96.5 14.7 −132.8 283

Eritrea 852 230 1,040 d 2.9 9.3 40.9 12.7 −3.2 76

Estonia 4,899 3,360 5,090 −2.8 7.2 29.8 92.2 −12.0 658

Ethiopia 6,507 110 500 2.2 55.5 19.1 8.9 −7.1 10,079

Faeroe Islands .. .. f .. .. .. .. .. .. ..

Fiji 2,007 2,460 3,860 0.4 17.6 12.4 3.5 0.5 213

Finland 127,398 24,790 19,660 0.9 4.0 16.6 1.8 5.4 ..

France 1,541,630 26,300 22,210 1.0 2.3 17.1 1.8 2.8 ..

French Guiana .. .. f .. .. .. .. .. .. ..

French Polynesia .. .. f .. .. .. .. .. .. ..

Gabon 4,752 4,120 6,560 −0.1 7.5 26.3 8.5 2.0 4,285

Gambia, The 407 340 1,440 d −0.6 29.9 17.7 4.7 −5.8 430

Georgia 4,656 860 1,980 −14.9 31.6 7.2 1,033.2 −6.5 1,446

Germany 2,320,985 28,280 21,170 0.7 1.1 21.2 2.5 −0.1 ..

Ghana 6,982 390 1,610 d 1.4 35.8 24.1 29.2 −4.7 5,982

Greece 122,430 11,640 12,540 1.0 10.7 19.5 12.2 −3.7 ..

Greenland .. .. f .. .. .. .. .. .. ..

Grenada 300 3,140 4,760 1.3 9.7 33.3 3.2 −19.6 105

Guadeloupe .. .. e .. .. .. .. .. .. ..

Guam .. .. f .. .. .. .. .. .. ..

Guatemala 16,582 1,580 4,060 1.5 23.6 13.8 12.2 −3.5 4,086

Guinea 3,830 550 1,790 2.7 22.6 21.8 6.2 −2.3 3,520



Guinea−Bissau 264 230 .. 1.0 53.8 23.9 45.3 −10.2 921

Guyana 677 800 2,800 d 12.9 § 32.2 26.7 −21.8 1,611

Haiti 2,864 380 1,260 d −4.4 30.3 10.2 25.3 −4.7 1,057

Honduras 4,426 740 2,260 1.0 19.7 32.0 20.4 −6.1 4,698

Hungary 45,760 4,510 6,970 0.2 6.0 27.4 22.8 −2.2 24,373

Iceland .. .. f .. 0.4 11.2 17.6 3.1 −1.8 ..






Totalexternaldebt

Economy

US$millions1997

US$ a/1997



% of GDP1997

% of GDP1997

%1990−97

% of GNP1997

US$millions1997

India 357,391 370 1,660 4.3 25.3 24.0 8.8 −1.5 94,404

Indonesia 221,533 1,110 3,390 5.9 16.0 30.9 8.6 −2.3 136,174

Iran, Islamic Rep. 108,614 1,780 5,690 1.9 25.2 29.3 32.5 3.7 11,816

Iraq .. .. h .. .. .. .. .. .. ..

Ireland 65,137 17,790 17,420 5.6 5.8 17.9 1.8 2.6 ..

Isle of Man .. .. e .. .. .. .. .. .. ..

Israel 94,402 16,180 17,680 2.6 .. 21.8 11.4 −5.1 ..

Italy 1,160,444 20,170 20,100 1.0 2.8 17.1 4.6 2.9 ..

Jamaica 3,956 1,550 3,330 0.8 8.0 34.5 32.8 −9.1 3,913

Japan 4,812,103 38,160 24,400 1.4 1.9 29.9 0.5 2.3 ..

Jordan 6,755 1,520 3,350 2.8 3.5 28.5 3.3 −2.9 8,234

Kazakhstan 21,317 1,350 3,530 −7.4 12.0 15.6 440.4 −4.1 4,278

Kenya 9,654 340 1,160 −0.3 28.8 19.1 16.0 −3.7 6,486

Kiribati 76 910 .. −0.6 § § 7.0 .. ..

Korea, Dem. Rep. .. .. h .. .. .. .. .. .. ..



Korea, Rep. 485,209 10,550 13,430 6.0 5.7 35.0 5.3 −1.8 143,373

Kuwait .. .. f .. 17.5 0.4 13.5 .. 25.7 ..

Kyrgyz Republic 2,211 480 2,180 −9.7 44.6 21.7 199.1 −7.9 928

Lao PDR 1,924 400 1,300 3.9 52.1 28.7 12.2 −12.8 2,320

Latvia 5,995 2,430 3,970 −7.3 7.4 19.7 87.7 −6.2 503

Lebanon 13,900 3,350 6,090 4.9 12.4 26.7 27.7 −23.3 5,036

Lesotho 1,368 680 2,490 d 2.5 11.5 85.5 8.0 .. 660

Liberia .. .. c .. .. .. .. .. .. 2,012

Libya .. .. e .. .. .. .. .. .. ..

Liechtenstein .. .. f .. .. .. .. .. .. ..

Lithuania 8,360 2,260 4,140 −7.1 12.8 26.5 140.3 −10.2 1,541

Luxembourg .. .. f .. 0.2 1.0 21.2 2.3 .. ..

Macao .. .. f .. .. .. § 7.5 .. ..

Macedonia, FYR 2,187 1,100 3,180 d −2.1 12.0 19.5 60.5 −12.5 1,543

Madagascar 3,575 250 900 −1.6 31.6 11.8 23.6 −3.8 4,105

Malawi 2,129 210 700 0.8 36.3 12.3 33.8 .. 2,206

Malaysia 98,195 4,530 7,730 5.8 12.1 42.8 4.5 −4.9 47,228

Maldives 301 1,180 3,340 d 4.3 .. .. 9.1 −4.6 160

Mali 2,656 260 720 0.3 49.2 23.3 10.0 −7.0 2,945

Malta 3,498 9,330 13,380 d 3.0 § 24.9 3.6 −5.0 1,034

Marshall Islands 97 1,610 .. .. § .. 7.0 .. ..

Martinique .. .. f .. .. .. .. .. .. ..

Mauritania 1,093 440 1,650 d 1.5 25.5 17.5 6.0 2.1 2,453

Mauritius 4,444 3,870 9,230 3.7 8.9 27.6 6.4 −2.6 2,472

Mayotte .. .. e .. .. .. .. .. .. ..

Mexico 348,627 3,700 8,110 d 0.2 5.3 26.4 19.3 −1.8 149,690

Micronesia, Fed.Sts.

213 1,920 .. −1.8 .. .. 3.4 .. ..

Moldova 1,974 460 1,450 −10.8 31.4 24.2 22.5 −15.8 1,040

Monaco .. .. f .. .. .. .. .. .. ..








Totalexternaldebt

Economy

US$millions1997

US$ a/1997



% of GDP1997

% of GDP1997

%1990−97

% of GNP1997

US$millions1997

Mongolia 998 390 1,490 d −1.4 36.8 22.4 89.3 4.1 718

Morocco 34,380 1,260 3,210 0.2 15.3 20.6 3.8 −0.3 19,321

Mozambique 2,405 140 690 d 2.6 31.0 29.5 45.9 −15.6 5,991

Myanmar .. .. c .. .. 58.6 12.9 24.2 .. 5,074

Namibia 3,428 2,110 5,100 d 1.1 10.7 19.8 9.4 5.9 ..

Nepal 4,863 220 1,090 2.2 41.4 21.4 9.7 −9.3 2,398

Netherlands 403,057 25,830 21,300 1.9 3.1 19.9 2.0 5.9 ..

Netherlands Antilles .. .. f .. .. .. .. .. .. ..

New Caledonia .. .. f .. .. .. .. .. .. ..

New Zealand 59,539 15,830 15,780 1.2 § 21.5 1.7 −8.6 ..

Nicaragua 1,907 410 1,820 d 1.6 34.2 27.7 67.7 −22.1 5,677

Niger 1,962 200 830 d −1.9 38.0 10.8 7.2 −8.1 1,579

Nigeria 33,393 280 860 0.7 32.7 15.3 42.6 1.4 28,455

Northern MarianaIslands

.. .. f .. .. .. .. .. .. ..

Norway 158,973 36,100 24,260 3.8 2.2 23.4 1.9 5.3 ..

Oman .. .. e .. −0.4 § § −2.9 −6.6 3,602

Pakistan 64,638 500 1,580 2.0 24.7 15.2 11.3 −6.0 29,665

Palau .. .. e .. .. 6.8 .. .. .. ..

Panama 8,373 3,080 6,890 3.0 8.2 29.1 2.8 −0.9 6,338

Papua New Guinea 4,185 930 .. 2.5 28.2 37.0 6.7 5.9 2,273

Paraguay 10,183 2,000 3,860 0.0 22.6 22.8 16.1 −4.7 2,053

Peru 63,672 2,610 4,580 4.6 6.9 24.6 40.1 −5.3 30,496

Philippines 88,372 1,200 3,670 1.6 18.7 24.8 8.6 −5.2 45,433

Poland 138,909 3,590 6,510 4.2 6.4 22.2 29.5 −4.2 39,890

Portugal 109,472 11,010 14,180 2.0 3.9 24.3 6.3 −1.8 ..



Puerto Rico .. .. e .. .. § § .. .. ..

Qatar .. .. f .. −5.3 .. .. .. .. ..

Reunion .. .. f .. .. .. § .. .. ..

Romania 31,787 1,410 4,270 −0.1 19.6 21.5 124.0 −6.7 10,442

Russian Federation 394,861 2,680 4,280 −7.9 8.0 21.9 298.8 0.6 125,645

Rwanda 1,680 210 650 −5.7 37.5 10.8 19.3 −5.0 1,111

Samoa 199 1,140 3,570 d 0.7 § § 2.9 4.7 156

São Tomé andPrincipe

40 290 .. −1.7 23.3 49.8 56.9 .. 261

Saudi Arabia 143,430 7,150 10,540 d −2.5 6.3 20.3 1.8 0.2 ..

Senegal 4,777 540 1,690 0.0 18.5 18.7 6.5 −1.3 3,671

Seychelles 537 6,910 .. 1.7 4.1 36.0 1.4 −11.7 149

Sierra Leone 762 160 410 −5.7 50.1 −5.1 34.5 −14.6 1,149

Singapore 101,834 32,810 29,230 6.7 0.1 37.4 2.9 15.4 ..

Slovak Republic 19,801 3,680 7,860 0.3 4.8 35.5 12.6 −7.0 9,989

Slovenia 19,550 9,840 11,880 4.2 4.6 24.0 32.3 0.2 4,762

Solomon Islands 350 870 2,270 d 1.0 .. .. 9.9 −7.4 135

Somalia .. .. c .. .. .. .. .. .. 2,561

South Africa 130,151 3,210 7,190 d −0.2 4.5 15.9 10.1 −1.5 25,222

Spain 569,637 14,490 15,690 1.3 3.5 20.6 4.6 0.5 ..






Totalexternaldebt

Economy

US$millions1997

US$ a/1997



% of GDP1997

% of GDP1997

%1990−97

% of GNP1997

US$millions1997

Sri Lanka 14,781 800 2,460 4.0 22.2 24.4 9.8 −2.6 7,638

St. Kitts and Nevis 256 6,260 7,770 4.0 5.6 46.4 4.0 .. 62



St. Lucia 558 3,510 5,030 2.8 10.7 19.0 2.9 −13.4 152

St. Vincent and theGrenadines

272 2,420 4,060 1.8 12.6 31.6 3.0 −12.8 258

Sudan 7,917 290 1,370 3.7 .. .. 81.6 −19.5 16,326

Suriname 544 1,320 .. −0.5 § § 138.0 21.8 ..

Swaziland 1,458 1,520 3,690 −0.6 18.7 33.9 12.7 −3.7 368

Sweden 231,905 26,210 19,010 0.2 § 14.6 2.6 3.2 ..

Switzerland 305,238 43,060 26,580 −0.5 .. 20.3 1.9 6.9 ..

Syrian ArabRepublic

16,643 1,120 3,000 3.3 § 29.3 8.9 3.2 20,865

Tajikistan 2,010 330 1,100 −16.1 § 17.4 394.3 −4.2 901

Tanzania / i 6,632 210 620 0.9 47.3 20.4 25.2 −7.9 7,177

Thailand 165,759 2,740 6,490 5.9 11.2 35.0 4.8 −2.0 93,416

Togo 1,485 340 1,460 d −1.2 41.8 15.7 8.9 .. 1,339

Tonga 177 1,810 .. 1.4 37.1 § 3.8 .. 61

Trinidad and Tobago5,553 4,250 6,460 0.5 1.7 21.8 7.2 5.5 2,162

Tunisia 19,433 2,110 5,050 2.0 13.1 26.6 5.0 −3.4 11,323

Turkey 199,307 3,130 6,470 2.3 15.1 25.1 79.3 −1.4 91,205

Turkmenistan 2,987 640 1,410 −14.6 § § 1,074.2 1.0 1,771

Uganda 6,608 330 1,160 d 4.4 43.8 15.3 17.5 −7.9 3,708

Ukraine 52,625 1,040 2,170 −12.6 12.3 20.1 591.0 −2.7 10,901

United ArabEmirates

.. .. f .. −3.8 § § .. .. ..

United Kingdom 1,231,269 20,870 20,710 1.9 1.8 15.9 3.2 0.6 ..

United States 7,783,092 29,080 29,080 1.7 1.8 17.5 2.1 −2.0 ..

Uruguay 20,035 6,130 9,110 3.5 8.5 12.8 45.4 −1.6 6,652

Uzbekistan 24,236 1,020 .. −5.6 30.6 18.8 442.5 −2.3 2,761

Vanuatu 238 1,340 3,230 d −3.5 24.7 .. 4.8 −7.7 48

Venezuela 79,317 3,480 8,660 −0.2 4.1 17.7 50.0 5.4 35,542

Vietnam 24,008 310 1,590 6.1 26.2 29.0 19.7 −7.5 21,629

Virgin Islands (U.S.) .. .. f .. .. .. .. .. .. ..

West Bank and Gaza.. .. h .. .. .. .. .. .. ..

Yemen, Rep. 4,405 270 720 −1.5 17.6 21.2 26.7 2.4 3,856

Yugoslavia, FR(Serb. / Mont.)

.. .. h .. .. .. .. .. .. 15,107



Zambia 3,536 370 910 −0.9 16.4 14.9 72.4 .. 6,758

Zimbabwe 8,208 720 2,240 −0.7 18.6 18.7 22.4 .. 4,961

.. Not available. § See map for range estimate.

Notes:Figures in italics are for years other than those specified; the number 0 or 0.0 means zero or less than half the unit shown and not known more precisely. a. Atlas method. b. Purchasing

power parity; see the technical notes. c. Estimated to be low income ($785 or less). d. Estimate is based on regression; others are extrapolated from the 1993 International ComparisonProgramme survey. e. Estimated to be upper middle income ($3,126 to $9,655). f. Estimated to be high income ($9,656 or more). g. References to GNP relate to GDP. h. Estimated to be lowermiddle income ($786 to $3,125). i. Data cover mainland Tanzania only.

Source: World Bank Atlas 1999.World Bank: Washington, D.C.

Aggregate Net Long−Term Resource Flows to Emerging Markets:(US$ Billions)

Type of finance 1990 1991 1992 1993 1994 1995 1996 1997 1998p

Official flows 56.9 62.6 54.0 53.3 45.5 53.4 32.2 39.1 47.9

Private flows 43.9 60.5 98.3 167.0 178.1 201.5 275.9 299.0 227.1

From international capital markets19.4 26.2 52.2 100.0 89.6 96.1 149.5 135.5 72.1

Private debt flows 15.7 18.6 38.1 49.0 54.4 60.0 100.3 105.3 58.0

Commercial banks 3.2 4.8 16.3 3.3 13.9 32.4 43.7 60.1 25.1

Bonds 1.2 10.8 11.1 37.0 36.7 26.6 53.5 42.6 30.2

Others 11.4 3.0 10.7 8.6 3.7 1.0 3.0 2.6 2.7

Portfolio equity flows 3.7 7.6 14.1 51.0 35.2 36.1 49.2 30.2 14.1

Foreign direct investment 24.5 34.4 46.1 67.0 88.5 105.4 126.4 163.4 155.0

Net long−term resource flows 100.8 123.1 152.3 220.2 223.6 254.9 308.1 338.1 275.0

of which official (%) 56.4 50.9 35.5 24.2 20.3 20.9 10.5 11.6 17.4

of which portfolio, equity (%) 3.7 6.2 9.3 23.2 15.7 14.2 16.0 8.9 5.1

p: preliminary

Source: World Bank, DebtorReporting System


Aggregate Net Long−Term Resource Flows to Emerging Markets: (US$ Billions) 29

World GNP and GNP Per Capita, 1997

GNP Per CapitaThis map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations, and any other information shown on this mapdo not imply, on the part of The World Bank Group, any judgement on the legal status of any territory, or any edorsement or acceptance of such boundaries.

World Bankincomegrouping *

Number ofeconomies

GNP(US$billions)

Population(millions)

GNP percapita (US$)

Low 61 712 2,036 350

Lower−middle 59 2,803 2,283 1,230

Upper−middle 36 2,609 574 4,540

High 54 24,001 927 25,890

EmergingMarkets

156 6,124 4,893 1,252

DevelopedMarkets

54 24,001 927 25,890

World 210 30,125 5,820 5,176

Note: Low income defined as per capita GNP of $785 or less,lower−middle ($786−$3,125), upper−middle ($3,126 to $9,655), andupper income ($9,656 or more).


World GNP and GNP Per Capita, 1997 30

Emerging Markets'Share of World GNP, 1997

Emerging Markets'Share of World Population, 1997

Key Trends in Emerging Stock Markets in 1998

The Year in Review

IFCI and IFCG Composite Index returns indicate that 1998 was the worst year ever for emerging markets. Itappeared that everything that could go wrong in emerging markets did go wrong during the year. The term"contagion" was used liberally by the financial press to describe the ripple effect of one country's economicproblems and related misfortunes in other markets.

The contagion had its beginning in July 1997, when a sharp decline in the value of the Thai baht initiated majorrisk reassessments throughout the Asia region. Eventually risk reassessments spread throughout Europe, Africa,and Latin America, underpinning sharp declines in both currencies and equities in those regions. Stock markets incountries with the weakest macroeconomic fundamentals generally suffered the sharpest losses, but countries withstronger economic policies and more robust financial sectors were not able to escape effects of the contagioncompletely.

Key Trends

Emerging market performance on a country−by−country basis was overwhelmingly negative in 1998, with 24 of31 markets tracked by the IFCI Composite registering losses. Of the seven IFCI markets posting gains, only fivemarkets, Greece, Korea, Morocco, Portugal, and Thailand registered double−digit gains. On a regional level,losses were generally steepest in Europe and Latin America, but no region was completely exempt from thecontagion that effectively swept through all emerging markets.

The IFCI Composite Index fell 24.1% in 1998, the steepest one−year decline in the index's 11−year history. TheIFCI Latin America and IFCI EMEA indexes, fell 38.0% and 22.6%, respectively, during the year, while the IFCIAsia Index, after falling more than 57% in 1997, registered a much more modest 0.7% decline. Performance ofthe broader IFCG Index—which does not consider foreign investment restrictions—mirrored the IFCI, with theIFCG Composite Index falling 22.9% during the year. The IFCG Latin America, EMEA, and Asia indexes fell38.2%, 27.3%, and 6.8%, respectively, in 1998.

The smaller, less active frontier markets tracked by IFC followed the downward trend of the most heavily


Key Trends in Emerging Stock Markets in 1998 31

capitalized emerging markets. The IFC Frontier Composite, a new index introduced in 1998, registered a 17.2%decline for the year. On a country−by−country basis, performance in the frontier markets was more mixed with 7of 18 markets posting gains. The African and Caribbean regions were generally the strongest, with the IFCGindexes for Trinidad and Tobago, Ghana, and Kenya posting returns of 17.5%, 17.3%, and 13.8% in dollars,respectively.

Equity returns in emerging markets were vastly different from returns registered in non−Asian developed markets.During the year, the S&P 500 soared 28.4%, powered by a surge in the most heavily capitalized issues. Equities indeveloped European markets also climbed with the FTSE−100, CAC−40, and DAX indexes gaining 14.5%,31.5%, and 18.5%, respectively. Japan's Nikkei 225 Index lost 9.3% as conditions in that market remainedunfavorable.

The contagion that rippled through the emerging market universe during the year severely crippled capital flows.Preliminary estimates by the World Bank indicate that net portfolio flows to emerging markets plummeted to just$14.1 billion in 1998, the lowest level since 1992. The $14.1 billion total registered during the year was less thanhalf of the 1997 total and only 29% of the total portfolio flows recorded in 1996. While private debt and equityflows to emerging markets declined to three−year lows, official flows reached three−year highs.

The poor performance of emerging markets in 1998 was visibly reflected in key market statistics such as marketcapitalization and value traded. Aggregate market capitalization of emerging markets contracted fromapproximately $2.2 trillion in 1997 to $1.9 trillion in 1998, the second consecutive annual decline. The decline inemerging market capitalization combined with expanding capitalization levels in developed markets loweredemerging markets' share of total world capitalization to 6.9%, the lowest percentage since 1990.

Value traded also showed a significant decline in 1998, with aggregate turnover falling to $1.96 trillion from$2.71 trillion in 1997. Emerging markets' share of total world trading slipped to 8.8% in 1998 from 13.9% in 1997as developed markets recorded sharply higher trading activity. Taiwan, China represented approximately 45% ofemerging marketcontinue

turnover, despite a 38% decline in that country's trading during 1998. The number of listed companies inemerging markets surged to 26,360 in 1998 from 19,747 in 1997 due to the inclusion of RASDAQ−traded stocksin Romania, which boosted the number of listed issues by nearly 5,700.

The disparity in valuation ratios and dividend yields between emerging markets and developed markets continuedto widen in 1998. The IFCI Composite P / E was 15.9 at the end of 1998 as compared to P / Es of 30.2, 20.4, and185.2 for the U.S., U.K., and Japan. The P / BV of the IFCI Composite fell to 1.3 at the end of 1998, a six−yearlow, while P / BVs in the U.S., U.K., and Japan stood at 5.1, 3.8, and 1.6, respectively. Moreover, dividend yieldsin emerging markets climbed to their highest level since 1991, reaching 2.9% in 1998, up from 2.5% in 1997.

Spread of Contagion and Emerging Market Performance

The contagion had its start in 1997, ending a period of robust Asian growth that had been underpinned bylow−cost foreign borrowing and stable yet overvalued currencies. In mid−1997, speculators sensed weakness inthe Thai baht and mounted attacks on the currency. The baht's devaluation in July soon triggered similardevaluations throughout the region. Indonesia, South Korea, and Thailand were the hardest hit by the fallingcurrencies with the IFC Investable indexes for those countries declining 73%, 70%, and 68%, respectively, in thelast six months of 1997.

At the start of 1998, the contagion appeared to have stalled as Asian currencies stabilized and as several equitymarkets in the region, most notably Korea, registered gains. The region, however, quickly succumbed to a second


Spread of Contagion and Emerging Market Performance 32

round of downward pressure, as continued high interest rates and the rapid depreciation of the Japanese yenthreatened East Asian GDP and export growth. Continued concern over the health of the Japanese economy, amajor investor and trading partner for Asian economies, as well as balance−of−payments concerns stemmingfrom Russia, caused the IFCI Composite to sink 12.8 and 10.5% in April and May, respectively.

As effects of the initial Asian crisis on emerging markets began to diminish by mid−summer 1998, the crash ofthe Russian financial system in August caused a second sharp downturn in emerging markets. In late spring, theruble came under mounting pressure to devalue as signs of macroeconomic imbalances and political reshufflingtriggered investor concerns. Most importantly, the government began covering a growing budget deficit, whichresulted from record−low oil prices and poor tax collection, by increasing its level of expensive short−termborrowing. By summer, investors began to question the ability of the government to service its debt as currencyreserves rapidly depleted, sending the interest rates on government debt even higher. In August, Russia devaluedthe ruble, defaulted on short−term domestic bonds, and declared a moratorium on commercial debt payments. Asa result, the IFCI Russia Index plunged 84.2% in 1998. Eastern European markets also suffered heavy losses as aresult of their trading and investment links to Russia as the IFCI Eastern Europe Index (including Russia) tumbled59%.

The contagion effect was rekindled by the Russian debacle, as investors feared that countries with similarmacroeconomic imbalances would be the next targets. Latin American stock markets, which had fallen only16.5% in the first six months of 1998, largely from high interest rates, were the obvious candidates, given fallinginternational commodity prices and, consequently, growing current account deficits. The largest country, Brazil,became the driver of the third wave of emerging market fallout, given high fiscal and current account deficits.More fiscally disciplined countries, such as Argentina, Chile, and Mexico, were also punished alongside Brazil in1998, although largely from severely high interest rates. Latin American market returns were slightlydifferentiated for all of 1998, however, as countries with fewer macroeconomic imbalances fared better.Argentine and Chilean shares emerged the least affected of all Latin American countries, posting IFC InvestableIndex losses of 28.5% and 29.8%, respectively, while Brazil registered losses of 43.0% in 1998.

Since December 1997, emerging markets have seen their fortunes rise and fall quite dramatically. A brief (onemonth) run−up in share prices (IFCI Composite up 10%, Asia up 25%, EMEA up 6%, and Latin America up 5%)in February 1998 was thought to be a sign of recovery. In−soft

stead, a sense of hope turned out to be false as shares continued to cede ground until September 1998. SinceSeptember, emerging markets have once again been on the track to recovery: The IFCI Composite has gained17%, Asia has increased 41%, Europe / Middle East / Africa has risen 13%, and Latin America has gained 7%.

By the end of 1998, the IFCI Composite Index stood at about half of its July 1997 level, having fallen about 45%in a 17−month period. In spite of the overall magnitude of the correction, the timing of losses followed aneast−west trajectory so that by the time Latin American stocks were plunging, Asian equities were booming. Thecontinued troubles of Latin America compared to the structural reform and simultaneous gains in share pricesunderway in Asia may mean that investors have returned to the practice of assessing risk on acountry−by−country basis rather than viewing emerging markets and regions as one asset class. This may be goodnews for governments considering privatization. In the absence of other foreseeable catastrophes, the introductionof structural reforms, including privatization, should encourage investors and lift stock markets, thus helpingreformist governments increase the gains from privatization.break


Spread of Contagion and Emerging Market Performance 33

IFCI Composite Index: Major Events in 1998

2—World Stock Markets

World Stock Market Performance, 1998:(Ranked by % Change in Price Indexes in US$)

Rank Market

% changeinpriceindex Rank Market

% changein priceindex

1 Korea* 118.8 51 India* −15.3

2 Greece* 91.2 52 Israel* −16.0

3 Finland 81.2 53 HongKong −18.2

4 Japan 70.1 54 Taiwan, China* −19.9

5 Belgium 56.7 55 Sri Lanka* −20.9

6 Italy 51.2 56 Jamaica* −21.3

7 Panama 48.6 57 China* −23.3

8 Spain 47.9 58 Saudi Arabia* −26.8

9 Barbados 47.6 59 Argentina* −28.4


2— World Stock Markets 34

10 France 41.6 60 Nigeria* −28.4

11 Netherlands 40.3 61 Indonesia* −29.3

12 Portugal* 38.2 62 Egypt* −29.5

13 Thailand* 31.9 63 Chile* −30.0

14 Norway 28.6 64 Bulgaria* −30.1

15 Morocco* 27.4 65 South Africa* −30.5

16 Germany 27.1 66 Croatia* −33.8

17 US. 26.7 67 Ecuador* −36.9

18 Cyprus 23.2 68 Bangladesh* −38.5

19 Switzerland 21.4 69 Mexico* −38.8

20 Costa Rica 19.6 70 Lithuania* −39.2

21 Slovenia* 19.0 71 Peru* −39.7

22 Malta 17.9 72 Brazil* −42.6

23 Ireland 17.8 73 Colombia* −43.6

24 Trinidad &Tobago*

17.5 74 Namibia −46.4

25 Ghana 17.3 75 Swaziland −48.6

26 U.K. 15.8 76 Zambia −50.0

27 Australia 14.2 77 Venezuela* −51.8

28 Kenya* 13.8 78 Oman −52.5

29 Palestine 11.4 79 Turkey* −53.1

30 Philippines* 9.8 80 Slovakia* −53.9

31 Botswana* 9.2 81 Zimbabwe* −59.2

32 Bermuda 8.8 82 Pakistan* −59.5

33 Jordan* 8.3 83 Estonia* −65.4

34 Sweden 7.8 84 Latvia* −67.4

35 Cote d'Ivoire* 4.4 85 Romania* −67.7

36 Austria 2.9 86 Ukraine* −82.3

37 Denmark 1.5 87 Russia* −87.5

38 Mauritius* 1.4

39 Luxembourg 0.0 Regional Indexes

40 Malaysia* −1.6 1 MSCI World 22.8

41 NewZealand −1.9 2 MSCI EAFE 18.2

42 Nepal −4.0 3 FT, EuroPac 16.9


2— World Stock Markets 35

43 Iran −6.0 4 IFCI Asia −0.7

44 Tunisia* −6.4 5 IFCG Asia −6.8

45 Singapore −9.0 6 IFCI EMEA −22.6

46 Canada −9.8 7 IFCG Composite −22.9

47 Czech Republic* −10.0 8 IFCI Composite −24.1

48 Hungary* −10.8 9 IFCG EMEA −27.3

49 Paraguay −12.1 10 IFCI LatinAmerica

−38.0

50 Poland* −12.2 11 IFCG LatinAmerica

−38.2

Notes: Markets marked by an asterisk indicate IFC Global Index as source;developed market returns come from a variety of sources, including Reuters andBloomberg; other markets' returns are based on local stock exchange indexresults, converted into U.S. dollars.

Top 25 Performing Stock Markets in 1998 (% of change))

World Stock Market Turnover, 1998


World Stock Market Turnover, 1998 36

Rank MarketTurnoverratio (%) Rank Market

Turnoverratio (%)

1Taiwan,China* 323.0 46 Mexico* 27.3

2 Spain 201.9 47 Saudi Arabia* 26.9

3 Korea* 176.2 48 Israel* 26.6

4 Germany 144.9 49 Latvia* 23.9

5 Turkey* 144.9 50 Egypt* 22.2

6 China* 130.1 51 Peru* 19.0

7 Estonia* 116.9 52 Lithuania* 16.0

8 Hungary* 111.3 53 Sri Lanka* 14.8

9 Pakistan* 111.1 54 Venezuela* 13.6

10 U.S. 106.2 55 Lebanon 12.4

11 Italy 104.1 56 Jordan* 11.6

12 Switzerland 100.8 57 West Bank &Gaza

11.0

13 Portugal* 93.4 58 Botswana* 10.5

14 Greece* 82.3 59 Zimbabwe* 10.1

15 Ireland 81.8 60 Morocco* 9.9

16 Slovakia* 74.3 61 Guatemala 9.6

17 Sweden 73.9 62 Colombia* 9.4

18 Romania* 72.1 63 Iran 9.3

19 Thailand* 71.0 64 Russia* 9.1

20 Netherlands 70.7 65 Tunisia* 8.2

21 Brazil* 70.4 66 Ecuador* 7.4

22 Norway 69.4 67 Chile* 7.1

23 France 68.7 68 Bermuda 6.8

24 Canada 67.0 69 Armenia 5.9

25 Bangladesh* 61.7 70 Mauritius* 5.8

26 New Zealand 56.2 71 Trinidad &Tobago*

5.0

27 India* 55.2 72 Nigeria* 4.9

28 Poland* 54.7 73 Ghana* 4.8

29 Hong Kong 54.4 74 Fiji 4.4

30 U.K. 53.4 75 Paraguay 4.3



31 Finland 53.0 76 Kenya* 4.1

32 Australia 51.9 77 Panama 3.8

33 Singapore 50.5 78 Luxembourg 3.4

34 Austria 47.4 79 Croatia (FYR)* 2.8

35 Japan 40.3 80 Ukraine* 2.5

36 CzechRepublic*

38.2 81 Cote d'Ivoire* 2.5

37 Indonesia* 37.9 82 Bulgaria* 2.4

38 Slovenia(FYR)*

34.4 83 Namibia 2.3

39 Oman 33.8 84 Barbados 1.9

40 Malaysia* 30.0 85 Uruguay 1.9

41 Philippines* 30.0 86 Jamaica* 1.9

42 South Africa* 29.1 87 El Salvador 1.9

43 Belgium 28.9 88 Bolivia 1.9

44 Argentina* 28.8 89 Nepal 1.7

45 Cyprus 27.7 90 Swaziland 0.0

Notes: Asterisks indicate market turnover for markets covered by IFCIndexes in 1998. Ratios for each market are calculated in dollar terms bydividing total 1998 value traded by average market capitalization for 1997and 1998.



Top 25 Market Indexes by Turnover Ratios, 1998

World Market Capitalization, 1989−1998:(US$ Millions; End of Period Levels)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Emerging Markets

Argentina* 4,225 3,268 18,509 18,633 43,967 36,864 37,783 44,679 59,252 45,332

Armenia − − − − − 0 3 7 16 18

Azerbaijan − − − − − − − − − 3

Bahrain − − − − − − − − − 6,770

Bangladesh* 476 321 269 314 453 1,049 1,338 4,551 1,537 1,034

Barbados − 282 308 259 328 518 494 770 1,141 2,412

Bolivia − − − − − 24 97 114 328 570

Botswana* − − 261 295 261 377 398 326 614 724

Brazil* 44,368 16,354 42,759 45,261 99,430 189,281 147,636 216,990 255,478 160,887

Bulgaria* − − − − − − 61 7 2 992

Chile* 9,587 13,645 27,984 29,644 44,622 68,195 73,860 65,940 72,046 51,866

China* − − 2,028 18,255 40,567 43,521 42,055 113,755 206,366 231,322

Colombia* 1,136 1,416 4,036 5,681 9,237 14,028 17,893 17,137 19,529 13,357

Costa Rica − − − 475 434 − − 781 820 1,308

Cote d'Ivoire* 531 549 541 483 414 428 866 914 1,276 1,818

Croatia (FYR)* − − − − − 514 581 2,975 4,246 3,190

Czech Republic* − − − − − 5,938 15,664 18,077 12,786 12,045

DominicanRepublic

− − − − − − − − 140 −

Ecuador* − − − 69 1,098 2,496 2,631 1,946 2,128 1,527

Egypt* 1,711 1,765 2,651 3,259 3,814 4,263 8,088 14,173 20,830 24,381

El Salvador − − − − − − − 452 499 1,435

Estonia* − − − − − − − − 1,101 519

Fiji − − − − − 32 67 82 93 88

Ghana* − − 76 84 118 1,873 1,649 1,492 1,138 1,384

Greece* 6,376 15,228 13,118 9,489 12,319 14,921 17,060 24,178 34,164 79,992

Guatemala − − − − − − 124 168 139 172


World Market Capitalization, 1989−1998: (US$ Millions; End of Period Levels) 39

Honduras − − 40 − − 270 338 − − 458

Hungary* − − 505 562 812 1,604 2,399 5,273 14,975 14,028

India* 27,316 38,567 47,730 65,119 97,976 127,515 127,199 122,605 128,466 105,188

Indonesia* 2,254 8,081 6,823 12,038 32,953 47,241 66,585 91,016 29,105 22,104

Iran − − 34,282 33,663 1,304 2,770 6,552 17,024 15,123 14,874

Israel* 8,227 3,324 6,176 29,634 50,773 32,730 36,399 35,934 45,268 39,628

Jamaica* 957 911 1,034 3,227 1,469 1,753 1,270 1,887 2,206 2,139

Jordan* 2,162 2,001 2,512 3,365 4,891 4,594 4,670 4,551 5,446 5,838

Kazakhstan − − − − − − − − − 37

Kenya* 499 453 453 637 1,060 3,082 1,886 1,846 1,824 2,024

Korea* 140,946 110,594 96,373 107,448 139,420 191,778 181,955 138,817 41,881 114,593

Latvia* − − − − − − 10 151 337 382

Lebanon − − − − − − 400 − 2,904 2,385

Lithuania* − − − − − − 157 900 1,693 1,074

Malaysia* 39,842 48,611 58,627 94,004 220,328 199,276 222,729 307,179 93,608 98,557

Malta − − − − − 52 154 61 281 112

Mauritius* − 268 312 416 791 1,514 1,331 1,676 1,665 1,849

Mexico* 22,550 32,725 98,178 139,061 200,671 130,246 90,694 106,540 156,595 91,746

Mongolia − − − − − − 27 26 54 40

Morocco* 621 966 1,528 1,909 2,651 4,376 5,951 8,705 12,177 15,676

Macedonia − − − − − − − − − 8

Moldova − − − − − − − − − 0

Namibia − − − 21 28 201 189 473 689 429

Nepal − − − − − 264 244 207 200 267

Nigeria* 1,005 1,372 1,882 1,221 1,029 2,711 2,033 3,560 3,646 2,887

Oman − − − 1,061 1,088 1,705 1,978 2,662 7,108 4,392

Pakistan* 2,457 2,850 7,326 8,028 11,602 12,263 9,286 10,639 10,966 5,418

Panama − − − 226 419 698 831 1,279 2,175 3,347

Paraguay − − − − 24 46 144 383 389 312

Peru* 931 812 1,118 2,630 5,113 8,178 11,795 12,291 17,586 11,645

Philippines* 11,965 5,927 11,386 15,282 40,327 55,519 58,859 80,649 31,361 35,314

Poland* − − 144 222 2,706 3,057 4,564 8,390 12,135 20,461

Portugal* 10,618 9,201 9,613 9,213 12,417 16,249 18,362 24,660 38,954 62,954

Romania* − − − − − 52 100 57 627 1,016



Russia* − − 244 218 18 151 15,863 37,230 128,207 20,598



Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

EmergingMarkets (cont.)

Saudi Arabia* − − 48,213 54,960 52,773 38,686 40,907 45,861 59,386 42,563

Slovakia* − − − − − 1,093 1,235 2,182 1,826 965

Slovenia (FYR)* − − − − − 595 311 663 1,625 2,450

South Africa* 131,060 137,540 168,497 103,537 171,942 225,718 280,526 241,571 232,069 170,252

Sri Lanka* 427 917 1,936 1,439 2,498 2,884 1,998 1,848 2,096 1,705

Swaziland − 17 27 111 297 338 339 471 129 85

Taiwan, China* 237,012 100,710 124,864 101,124 195,198 247,325 187,206 273,608 287,813 260,015

Thailand* 25,648 23,896 35,815 58,259 130,510 131,479 141,507 99,828 23,538 34,903

Trinidad &Tobago*

411 696 671 510 485 663 1,125 1,405 3,117 3,922

Tunisia* 638 533 711 814 956 2,561 3,927 4,263 2,321 2,268

Turkey* 6,783 19,065 15,703 9,931 37,496 21,605 20,772 30,020 61,090 33,646

Uruguay − − − − 251 170 183 266 212 209

Uzbekistan − − − − − − − 128 465 −

Ukraine* − − − − − − − − 3,667 570

Venezuela* 1,472 8,361 11,214 7,600 8,010 4,111 3,655 10,055 14,581 7,587

West Bank &Gaza

− − − − − − − − 662 589

Zambia − − − − − − 19 195 705 293

Zimbabwe* 1,067 2,395 1,394 628 1,433 1,828 2,038 3,635 1,969 1,310

IFC IndexMarkets 745,278 613,322 873,214 964,503 1,684,608 1,906,185 1,916,867 2,246,635 2,166,319 1,867,645

All EmergingMarkets

745,278 613,621 907,871 1,000,319 1,688,781 1,913,273 1,929,050 2,272,184 2,200,591 1,908,258



DevelopedMarkets

Australia 140,956 107,611 144,867 135,451 203,964 219,188 245,218 494,503 696,656 874,283

Austria 22,261 11,476 7,689 21,750 28,437 30,272 32,513 33,953 35,724 34,106

Belgium 74,596 65,449 71,319 64,172 78,067 84,103 104,960 119,831 136,965 245,657

Bermuda − − − − − − − − 1,411 1,500

Canada 291,328 241,920 266,874 243,018 326,524 315,009 366,344 486,268 567,635 543,394

Cayman Islands − − − − − − − − 42 160

Cyprus − − 1,290 1,183 981 1,334 2,516 2,355 2,011 2,618

Denmark 40,152 39,063 44,841 32,635 41,785 54,399 56,223 71,688 93,766 98,881

Finland 30,652 22,721 14,271 12,202 23,562 38,278 44,138 63,078 73,322 154,518

France 364,841 314,384 348,083 350,858 456,111 451,263 522,053 591,123 674,368 991,484

Germany 365,176 355,073 393,454 348,138 463,476 470,519 577,365 670,997 825,233 1,093,962

Hong Kong 77,496 83,397 121,986 172,106 385,247 269,508 303,705 449,381 413,323 343,394

Iceland − − − − − 484 720 1,210 − −

Ireland − − − − − 8,408 25,817 12,243 24,135 29,956

Italy 169,417 148,766 158,865 129,191 136,153 180,135 209,522 258,160 344,665 569,731

Japan 4,392,597 2,917,679 3,130,863 2,399,004 2,999,756 3,719,914 3,667,292 3,088,850 2,216,699 2,495,757

Kuwait 9,932 − − − 10,049 10,850 14,353 21,840 2,588 −

Luxembourg 10,348 10,456 11,308 11,936 19,337 28,511 30,443 32,692 33,892 35,403

Netherlands 157,789 119,825 136,158 134,594 181,876 283,251 356,481 378,721 468,736 603,182

New Zealand 13,487 8,835 14,336 15,348 25,597 27,217 31,950 38,641 90,483 89,373

Norway 25,285 26,130 22,043 17,821 27,380 36,469 44,587 57,423 66,503 56,285

Singapore 35,925 34,308 47,637 48,818 132,742 134,516 148,004 150,215 106,317 94,469

Spain 122,652 111,404 147,928 98,969 119,264 154,858 197,788 242,779 290,383 402,180

Sweden 119,285 97,929 100,913 78,376 107,376 130,939 178,049 247,217 272,730 278,707

Switzerland 170,936 160,044 173,881 195,285 271,713 284,092 433,621 402,104 575,338 689,199

U.A.E. − − − − − − − − − 31

U.K. 826,598 848,866 987,952 927,129 1,151,646 1,210,245 1,407,737 1,740,246 1,996,225 2,374,273

U.S. 3,505,686 3,059,434 4,087,660 4,485,040 5,136,199 5,067,016 6,857,622 8,484,433 11,308,77913,451,352

DevelopedMarkets 10,967,3958,784,770 10,434,2189,923,024 12,327,24213,210,77815,859,02118,139,95121,317,92925,553,855

11,712,6739,398,391 11,342,08910,923,343 14,016,02315,124,05117,788,07120,412,13523,518,52027,462,113



World Total

Notes: See Stock Market Reference List in Appendix 1 for stock exchanges included in each market total. Asterisks indicate IFC index marketsin 1998.

Market Capitalization Analysis and Summary

The map on the opposite page illustrates market capitalizations of world economies based on figures reported inIFC's 1999 Global Survey of Stock Exchanges (see pages 16 and 17 for data). The table beneath the map showsthat while 95% of the darkest shaded regions are emerging markets, 61% of the medium−shaded regions areemerging markets, as are 18% of the lighter regions. Overall, the market capitalization of emerging marketsrepresented 7% of world total market capitalization in 1998. Emerging market capitalization reached almost 13%of the world total in 1994, but has decreased steadily since then to just under 7%. The dollar size of emergingmarkets has also dropped significantly (down 16.2%) from its peak of $2.27 trillion in 1996. Over the sameperiod, the market capitalization of developed markets surged 40.9% to $25.55 trillion.

The diagram below is a plot of 1997 GNP per capita versus 1997 market capitalization as a percentage of GNP.*It includes the 25 largest emerging markets by market capitalization and the 10 largest developed markets bymarket capitalization. Emerging markets are shown with black squares, while blue squares indicate developedmarkets. The diagram reveals that relative to the size of their domestic economies, many emerging markets are aslarge or larger than the stock markets of developed economies, suggesting that market size is heavily influencedby factors such as institutional arrangements in the financial system, and the interaction of monetary, fiscal, andregulatory policies. It is also apparent that relative stock market development is not necessarily related to currentper capita income levels. Because market capitalization is a function of stock market prices, the ratios depictedbelow fluctuate and should be used cautiously to form only a part of any consideration of a market's relative sizeand stage of development.break

GNP Per Capita vs Market Capitalization as a Percentage of GNP, 1997Source: IFC Emerging Markets Data Base, and the World Bank.Notes: End−1997 values of GNP and market cap are used because of lags in reporting of GNP data.


Market Capitalization Analysis and Summary 43

World Market Capitalization, 1998This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this mapdo not imply, on the part of The World Bank Group, any judgement on the legal status of any territory, or any endorsement or acceptance of such boundaries.

Mkt cap grouping(US$ millions)

Numberofmarkets

Market cap(US$millions)

Of whichemerging

Share ofgroup(%)

10,000 or less 53 84,640 80,491 95%

10,001−100,000 28 1,224,143 785,670 64%

100,001−1,000,00017 6,737,986 1,042,257 15%

1,000,001 or more 4 19,415,344 0 0%

Total surveyed 102 27,462,113 190,258 7%

Emerging Markets' Shareof World Market Cap, 1998


Market Capitalization Analysis and Summary 44

Emerging Markets' Shareof World Market Cap, 1989−1998

World Value Traded, 1989−1998:(US$ Millions; End of Period Levels)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Emerging Markets

Argentina* 1,916 852 4,824 15,679 10,339 11,372 4,594 4,382 25,702 15,078

Armenia − − − − − 0 1 0 1 1

Azerbaijan − − − − − − − − − −

Bahrain − − − − − − − − − 577

Bangladesh* 5 6 3 11 15 107 158 722 384 793

Barbados − 10 9 2 4 6 3 6 23 34

Bolivia − − − − − 0 1 1 1 6

Botswana* − − 8 15 20 31 38 31 74 70

Brazil* 16,762 5,598 13,373 20,525 57,409 109,498 79,186 112,108 203,260 146,594

Bulgaria* − − − − − − 4 0 − 12

Chile* 866 783 1,900 2,029 2,797 5,263 11,072 8,460 7,445 4,419

China* − − 820 16,715 43,395 97,526 49,774 256,008 369,574 284,766

Colombia* 74 71 203 554 732 2,191 1,254 1,360 1,894 1,539

Costa Rica − − − 11 11 10 16 15 − −

Cote d'Ivoire* 5 18 7 4 6 12 14 19 24 39

Croatia (FYR)* − − − − − 252 47 227 343 104

Czech Republic* − − − − − 1,328 3,630 8,431 7,055 4,741

DominicanRepublic

− − − − − − − − − −

Ecuador* − − − − 41 73 234 120 186 136


World Value Traded, 1989−1998: (US$ Millions; End of Period Levels) 45

Egypt* 91 126 139 195 170 757 677 2,463 5,859 5,028

El Salvador − − − − − − − 10 15 18

Estonia* − − − − − − − − 1,484 947

Fiji − − − − − 0 0 0 2 4

Ghana* − − 0 0 5 75 22 17 47 60

Greece* 549 3,924 2,443 1,605 2,713 5,145 6,091 8,283 21,146 46,999

Guatemala − − − − − − 5 4 1 15

Honduras − − 1 10 23 0 0 1 0 −

Hungary* − − 117 38 99 270 355 1,641 7,684 16,135

India* 17,362 21,918 24,295 20,597 21,879 27,290 13,738 26,599 53,954 64,498

Indonesia* 541 3,992 2,922 3,903 9,158 11,801 14,403 32,142 41,650 9,709

Iran − − 5,217 6,995 311 424 741 2,617 1,212 1,389

Israel* 3,909 5,535 8,389 14,694 30,327 25,110 9,155 8,045 10,727 11,291

Jamaica* 90 32 95 386 336 158 341 39 − 41

Jordan* 652 407 432 1,317 1,377 626 517 297 501 653

Kazakhstan − − − − − − − − − −

Kenya* − 10 11 12 14 62 65 67 104 79

Korea* 121,264 75,949 85,464 116,101 211,710 286,056 185,197 177,266 170,237 137,859

Latvia* − − − − − − − 12 84 86

Lebanon − − − − − − − − 640 328

Lithuania* − − − − − − 37 47 239 222

Malaysia* 6,888 10,871 10,657 21,730 153,661 126,458 76,822 173,568 147,036 28,835

Malta − − − − − 3 16 2 3 −

Mauritius* − 6 5 10 39 85 70 78 137 102

Mexico* 6,232 12,212 31,723 44,582 62,454 82,964 34,377 43,040 52,646 33,841

Mongolia − − − − − − 2 8 15 −

Morocco* 16 62 49 70 498 788 2,426 432 1,048 1,385

Macedonia − − − − − − − − − −

Moldova − − − − − − − − − −

Namibia − − − − − 18 3 41 24 13

Nepal − − − − − 14 18 5 5 4

Nigeria* 4 11 9 14 10 18 14 72 132 161

Oman − − − 102 108 242 211 545 3,880 1,943

Pakistan* 193 231 620 980 1,844 3,198 3,210 6,054 11,476 9,102



Panama − − − 1 7 70 9 24 42 104

Paraguay − − − − 3 6 22 30 20 15

Peru* 90 99 130 417 1,672 3,080 3,935 3,805 4,082 2,776

Philippines* 2,410 1,216 1,506 3,104 6,785 13,949 14,727 25,519 19,783 9,992

Poland* − − 28 167 2,170 5,134 2,770 5,538 7,977 8,921

Portugal* 1,912 1,687 2,818 3,455 4,835 5,275 4,233 7,147 20,932 47,577

Romania* − − − − − 3 1 6 268 592

Russia* − − − − − 268 465 2,958 16,362 6,805



Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

EmergingMarkets (cont.)

Saudi Arabia* − − 2,274 3,653 4,629 6,632 6,194 6,773 16,549 13,712

Slovakia* − − − − − 120 832 2,321 2,165 1,037

Slovenia (FYR)* − − − − − 366 345 401 352 700

South Africa* 7,095 8,158 8,051 7,767 13,049 15,607 17,048 27,202 44,893 58,444

Sri Lanka* 7 39 104 114 385 700 221 134 311 281

Swaziland − − 0 0 0 2 − 2 378 0

Taiwan, China* 965,840 715,005 365,232 240,667 346,487 711,346 383,099 470,193 1,297,474 884,698

Thailand* 13,452 22,894 30,089 72,060 86,934 80,188 57,000 44,365 23,119 20,734

Trinidad &Tobago*

35 55 80 22 56 52 137 107 134 177

Tunisia* 32 19 30 33 46 296 663 281 285 188

Turkey* 798 5,841 8,571 8,191 23,242 21,692 51,392 36,831 59,105 68,646

Uruguay − − − − 14 12 5 4 3 4

Uzbekistan − − − − − − − 70 35 −

Ukraine* − − − − − − − − − 54

Venezuela* 93 2,232 3,240 2,631 1,874 936 510 1,275 3,858 1,510

West Bank &Gaza

− − − − − − − − 25 69

Zambia − − − − − − − 3 9 −



Zimbabwe* 36 51 77 20 53 176 150 255 532 166

IFC IndexMarkets 1,169,219 899,910 610,738 624,067 1,103,265 1,664,334 1,041,244 1,507,141 2,660,313 1,952,334

All EmergingMarkets

1,169,219 899,920 615,965 631,188 1,103,746 1,665,141 1,042,297 1,510,529 2,666,647 1,956,858

DevelopedMarkets

Australia 44,786 40,113 46,834 45,771 67,712 94,726 98,654 237,292 310,869 407,420

Austria 11,706 18,609 7,039 4,931 6,561 16,380 25,759 20,528 24,630 16,566

Belgium 7,708 6,425 6,209 8,030 11,199 12,820 15,249 26,120 29,713 55,360

Bermuda − − − − − − − − 96 99

Canada 90,120 71,278 78,160 83,448 142,222 161,058 183,686 265,360 355,585 372,082

Cayman Islands − − − − − − − − − −

Cyprus − − 65 89 29 85 301 462 319 641

Denmark 14,463 11,105 9,289 15,806 20,989 27,421 25,942 34,667 46,878 −

Finland 7,363 3,933 1,550 2,292 8,112 13,194 19,006 22,422 36,368 60,321

France 107,286 116,893 113,573 121,842 174,283 307,686 364,550 277,100 405,523 572,151

Germany 628,630 501,805 379,383 446,019 302,985 460,617 573,549 768,745 1,029,152 1,390,798

Hong Kong 34,584 34,633 38,607 78,598 131,550 147,158 106,888 166,419 489,365 205,918

Iceland − − − − − 19 44 92 181 178

Ireland − − − − − 4,380 13,241 4,655 15,168 22,126

Italy 38,926 42,566 24,991 28,100 65,770 117,894 86,904 102,351 198,235 475,791

Japan 2,800,695 1,602,388 995,939 635,261 954,341 1,121,438 1,231,552 1,251,998 1,251,750 948,522

Kuwait 1,709 − − − 2,612 1,948 6,389 19,203 34,576 9,333

Luxembourg 106 87 135 118 1,104 269 205 534 562 1,173

Netherlands 89,848 40,199 38,971 45,511 67,185 170,596 248,606 339,500 284,869 379,166

New Zealand 3,027 1,933 2,892 3,168 6,785 7,162 8,407 8,882 24,648 50,514

Norway 12,489 13,996 11,642 10,151 8,751 8,817 24,420 35,882 46,421 42,638

Singapore 13,711 20,293 18,074 14,084 81,623 81,054 60,461 42,739 63,954 50,735

Spain 38,389 40,967 40,591 39,987 47,156 61,452 59,791 250,951 453,016 699,034

Sweden 17,420 17,571 21,662 28,395 43,593 85,407 93,197 136,898 176,172 203,690

Switzerland − − 68,836 75,407 167,880 226,723 310,928 392,783 494,912 637,344



U.A.E. − − − − − − − − − −

U.K. 320,268 278,740 315,279 382,996 423,526 464,085 510,131 578,471 829,131 1,167,382

U.S. 2,015,544 1,751,252 2,183,910 2,081,658 3,354,961 3,564,315 5,108,591 7,121,487 10,216,07413,148,480

DevelopedMarkets 6,298,778 4,614,786 4,403,631 4,151,662 6,090,929 7,156,704 9,176,451 12,105,54116,818,16720,917,462

World Total 7,467,997 5,514,706 5,019,596 4,782,850 7,194,675 8,821,845 10,218,748 13,616,07019,484,81422,874,320

Notes : Table contains annual total turnover of listed company shares. See Stock Market Reference List in Appendix 1 for stock exchangesincluded in each market total. Asterisks indicate IFC Index markets in 1998.

World Number of Listed Domestic Companies, 1989−1998:(End of Period Levels)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Emerging Markets

Argentina* 178 179 174 175 180 156 149 147 136 130

Armenia − − − − − 1 1 10 59 82

Azerbaijan − − − − − − − − − 2

Bahrain − − − − − − − − − 38

Bangladesh* 116 134 138 145 153 170 183 186 202 208

Barbados − 14 14 15 16 19 18 19 18 20

Bolivia − − − − − 2 7 10 11 14

Botswana* − − 9 11 11 11 12 12 12 14

Brazil* 592 581 570 565 550 544 543 551 536 527

Bulgaria* − − − − − 16 26 15 15 998

Chile* 213 215 221 245 263 279 284 291 764 277

China* − − 14 52 183 291 323 540 743 853

Colombia* 82 80 83 80 89 113 190 189 189 163

Costa Rica 78 − 82 93 118 116 118 114 114 97

Cote d'Ivoire* 23 23 25 27 24 27 31 31 35 35

Croatia (FYR)* − − − 2 − 29 61 66 77 50

Czech Republic* − − − − − 1,024 1,635 1,588 276 261


World Number of Listed Domestic Companies, 1989−1998: (End of Period Levels) 49

Dominican Republic − − − − − − − − 6 −

Ecuador* − − − 65 142 145 40 42 41 37

Egypt* 510 573 627 656 674 700 746 649 654 861

El Salvador − − − − − − − 49 59 80

Estonia* − − − − − − − − 22 26

Fiji − − − − − 4 4 4 8 9

Ghana* − − 13 15 15 17 19 21 21 21

Greece* 119 145 126 129 143 216 212 224 230 244

Guatemala − − − − − − 7 9 7 7

Honduras − − 26 44 69 82 99 111 119 94

Hungary* − − 21 23 28 40 42 45 49 55

India* 2,407 2,435 2,556 2,781 3,263 4,413 5,398 5,999 5,843 5,860

Indonesia* 57 125 141 155 174 216 238 253 282 287

Iran − − 97 118 124 147 169 220 263 242

Israel* 262 216 229 377 558 638 654 655 640 650

Jamaica* 45 44 44 48 50 50 51 46 49 49

Jordan* 106 105 101 103 101 95 97 98 139 150

Kazakhstan − − − − − − − − − 18

Kenya* 57 54 53 57 56 56 56 56 58 58

Korea* 626 669 686 688 693 699 721 760 776 748

Latvia* − − − − − − 17 34 51 69

Lebanon − − − − − − 3 − 9 12

Lithuania* − − − − − 13 351 460 607 60

Malaysia* 251 282 321 369 410 478 529 621 708 736

Malta − − − − − 4 5 6 6 7

Mauritius* − 13 20 22 30 35 28 40 40 40

Mexico* 203 199 209 195 190 206 185 193 198 194

Mongolia − − − − − − 461 449 434 430

Morocco* 71 71 67 62 65 51 44 47 49 53

Macedonia − − − − − − − − − 2

Moldova − − − − − − − − − 21

Namibia − − − 3 4 8 10 12 13 15

Nepal − − − − − 72 83 90 98 104

Nigeria* 111 131 142 153 174 177 181 183 182 186



Oman 52 55 58 60 62 67 80 94 114 131

Pakistan* 440 487 542 628 653 724 764 782 781 773

Panama − − − 13 11 15 16 19 21 27

Paraguay − − − − 3 9 30 60 60 55

Peru* 256 294 298 287 233 218 246 231 248 257

Philippines* 144 153 161 169 178 189 205 216 221 221

Poland* − − 9 16 22 44 65 83 143 198

Portugal* 182 181 180 191 183 195 169 158 148 135

Romania* − − − − − 4 7 17 76 5,753

Russia* − − 13 26 51 72 170 73 208 237



Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Emerging Markets(cont.)

Saudi Arabia* − − 59 60 65 68 69 70 70 74

Slovakia* − − − − − 18 18 816 872 837

Slovenia (FYR)* − − 24 − 16 25 17 21 26 28

South Africa* 748 732 688 683 647 640 640 626 642 668

Sri Lanka* 176 175 178 190 200 215 226 235 239 233

Swaziland − 1 2 4 4 4 4 6 4 5

Taiwan, China* 181 199 221 256 285 313 347 382 404 437

Thailand* 175 214 276 305 347 389 416 454 431 418

Trinidad & Tobago* 31 30 29 28 26 27 27 23 24 25

Tunisia* − 13 − 17 19 21 26 30 34 38

Turkey* 50 110 134 145 152 176 205 229 257 277

Uruguay 39 36 26 26 21 21 20 18 16 19

Uzbekistan − − − − − − − 4 − −

Ukraine* − − − − − − − − − 125

Venezuela* 74 76 87 91 93 90 90 87 91 94

WestBank & Gaza − − − − − − − − 27 20



Zambia − − − − − − 2 6 6 8

Zimbabwe* 54 57 60 62 62 64 64 64 64 67

IFC Index Markets 8,540 8,995 9,549 10,354 11,451 14,397 16,817 18,639 18,603 24,795

All EmergingMarkets

8,709 9,101 9,854 10,730 11,883 14,968 17,954 19,949 20,075 26,354

Developed Markets

Australia 1,258 1,089 957 1,030 1,070 1,186 1,178 1,190 1,219 1,162

Austria 81 97 105 112 111 111 109 106 101 96

Belgium 184 182 183 171 165 155 143 139 138 146

Bermuda − − − − − − − − 33 32

Canada 1,146 1,144 1,086 1,119 1,124 1,185 1,196 1,265 1,362 1,384

Cayman Islands − − − − − − − − 2 1

Cyprus − − 40 39 39 38 41 39 40 45

Denmark 257 258 261 257 257 252 213 237 237 242

Finland 78 73 63 61 57 65 73 71 124 129

France 668 578 551 786 472 459 450 686 683 711

Germany 628 413 428 665 426 417 678 681 700 741

Hong Kong 284 284 333 386 450 529 518 561 658 658

Iceland − − − − − 24 27 32 41 56

Ireland − − − − − 80 80 76 83 79

Italy 217 220 224 228 210 223 250 244 235 320

Japan 2,019 2,071 2,107 2,118 2,155 2,205 2,263 2,334 2,387 2,416

Kuwait 52 − − − 47 48 52 60 74 69

Luxembourg 54 54 70 59 62 60 61 54 56 53

Netherlands 313 260 204 187 245 317 217 217 201 212

New Zealand 242 171 139 123 136 173 169 158 190 135

Norway 122 112 112 115 120 132 151 158 196 236

Singapore 136 150 166 163 178 240 212 223 303 321

Spain 423 427 433 399 376 379 362 357 384 484

Sweden 135 258 230 205 205 228 223 229 245 258

Switzerland 177 182 182 180 215 237 233 213 216 232

U.A.E. − − − − − − − − − 44



U.K. 2,015 1,701 1,623 1,874 1,646 2,070 2,078 2,433 2,046 2,399

U.S. 6,727 6,599 6,742 6,699 7,246 7,692 7,671 8,479 8,851 8,450

Developed Markets 17,216 16,323 16,239 16,976 17,012 18,505 18,648 20,242 20,805 21,111

World Total 25,925 25,424 26,093 27,706 28,895 33,473 36,602 40,191 40,880 47,465

Notes: Table contains the total number of domestic companies, excluding investment companies. See Stock Market Reference List inAppendix 1 for stock exchanges included in each market total. Asterisks indicate IFC Index markets in 1998.

World Rankings of Market Capitalization, Value Traded, and Number of Listed DomesticCompanies, 1998:(Ranked by End−1998 Levels)

Rank Market

Total marketcap (US$millions) Rank Market

Total valuetraded (US$millions) Rank Market

Number oflisted domesticcompanies

1 U.S. 13,451,352 1 U.S. 13,148,480 1 U.S. 8,450

2 Japan 2,495,757 2 Germany 1,390,798 2 India* 5,860

3 U.K. 2,374,273 3 U.K. 1,167,382 3 Romania* 5,753

4 Germany 1,093,962 4 Japan 948,522 4 Japan 2,416

5 France 991,484 5 Taiwan,China*

884,698 5 U.K. 2,399

6 Australia 874,283 6 Spain 699,034 6 Canada 1,384

7 Switzerland 689,199 7 Switzerland 637,344 7 Australia 1,162

8 Netherlands 603,182 8 France 572,151 8 Bulgaria* 998

9 Italy 569,731 9 Italy 475,791 9 Egypt* 861

10 Canada 543,394 10 Australia 407,420 10 China* 853

11 Spain 402,180 11 Netherlands 379,166 11 Slovakia* 837

12 Hong Kong 343,394 12 Canada 372,082 12 Pakistan* 773

13 Sweden 278,707 13 China* 284,766 13 Korea* 748

14 Taiwan,China*

260,015 14 Hong Kong 205,918 14 Germany 741

15 Belgium 245,657 15 Sweden 203,690 15 Malaysia* 736

16 China* 231,322 16 Brazil* 146,594 16 France 711


World Rankings of Market Capitalization, Value Traded, and Number of Listed Domestic Companies, 1998: (Ranked by End−1998 Levels)53

17 South Africa* 170,252 17 Korea* 137,859 17 South Africa* 668

18 Brazil* 160,887 18 Turkey* 68,646 18 Hong Kong 658

19 Finland 154,518 19 India* 64,498 19 Israel* 650

20 Korea* 114,593 20 Finland 60,321 20 Brazil* 527

21 India* 105,188 21 South Africa* 58,444 21 Spain 484

22 Denmark 98,881 22 Belgium 55,360 22 Taiwan, China* 437

23 Malaysia* 98,557 23 Singapore 50,735 23 Mongolia 430

24 Singapore 94,469 24 New Zealand 50,514 24 Thailand* 418

25 Mexico* 91,746 25 Portugal* 47,577 25 Singapore 321

26 New Zealand 89,373 26 Greece* 46,999 26 Italy 320

27 Greece* 79,992 27 Norway 42,638 27 Indonesia* 287

28 Portugal* 62,954 28 Mexico* 33,841 28 Chile* 277

29 Norway 56,285 29 Malaysia* 28,835 29 Turkey* 277

30 Chile* 51,866 30 Ireland 22,126 30 CzechRepublic*

261

31 Argentina* 45,332 31 Thailand* 20,734 31 Sweden 258

32 Saudi Arabia* 42,563 32 Austria 16,566 32 Peru* 257

33 Israel* 39,628 33 Hungary* 16,135 33 Greece* 244

34 Luxembourg 35,403 34 Argentina* 15,078 34 Iran 242

35 Philippines* 35,314 35 Saudi Arabia* 13,712 35 Denmark 242

36 Thailand* 34,903 36 Israel* 11,291 36 Russia* 237

37 Austria 34,106 37 Philippines* 9,992 37 Norway 236

38 Turkey* 33,646 38 Indonesia* 9,709 38 Sri Lanka* 233

39 Ireland 29,956 39 Pakistan* 9,102 39 Switzerland 232

40 Egypt* 24,381 40 Poland* 8,921 40 Philippines* 221

Notes: Market cap ranking based on end−1998 total market values of listed domestic companies; value traded ranking based onend−1998 total value traded of listed domestic company shares; ranking of number of listed companies based on end−1998 levels,excluding listed investment funds where possible. See Stock Market Reference List in Appendix 1 for stock exchanges included ineach market total.

World Rankings of Average Company Size, 1998:(US$ Millions; Ranked by End−1998 Levels)


World Rankings of Average Company Size, 1998: (US$ Millions; Ranked by End−1998 Levels) 54

Rank Market Ave. companysize*

Rank Market Ave. companysize*

1 Switzerland 2,970.7 52 Ghana* 65.9

2 Netherlands 2,845.2 53 Croatia (FYR)* 63.8

3 Italy 1,780.4 54 Iran 61.5

4 Belgium 1,682.6 55 Israel* 61.0

5 U.S. 1,591.9 56 Tunisia* 59.7

6 Germany 1,476.3 57 Cyprus 58.2

7 France 1,394.5 58 Cote d'Ivoire* 51.9

8 Finland 1,197.8 59 Botswana* 51.7

9 Sweden 1,080.3 60 Bermuda 46.9

10 Japan 1,033.0 61 Mauritius* 46.2

11 U.K. 989.7 62 CzechRepublic*

46.1

12 Spain 831.0 63 Peru* 45.3

13 Australia 752.4 64 Jamaica* 43.7

14 Luxembourg 668.0 65 Ecuador* 41.3

15 New Zealand 662.0 66 Jordan* 38.9

16 Taiwan, China* 595.0 67 Zambia 36.6

17 Saudi Arabia* 575.2 68 Kenya* 34.9

18 Hong Kong 521.9 69 Oman 33.5

19 Mexico* 472.9 70 WestBank &Gaza

29.5

20 Portugal* 466.3 71 Namibia 28.6

21 Denmark 408.6 72 Egypt* 28.3

22 Canada 392.6 73 Bahrain 25.3

23 Ireland 379.2 74 Guatemala 24.6

24 Austria 355.3 75 Estonia* 20.0

25 Argentina* 348.7 76 Zimbabwe* 19.6

26 Greece* 327.8 77 India* 18.0

27 Brazil* 305.3 78 El Salvador 17.9

28 Morocco* 295.8 79 Lithuania* 17.9

29 Singapore 294.3 80 Swaziland 17.0

30 China* 271.2 81 Malta 16.0



31 Hungary* 255.1 82 Nigeria* 15.5

32 South Africa* 254.9 83 Costa Rica 13.5

33 Norway 238.5 84 Uruguay 11.0

34 Bolivia 230.1 85 Fiji 9.8

35 Lebanon 198.8 86 Sri Lanka* 7.3

36 Chile* 187.2 87 Pakistan* 7.0

37 Cayman Islands 160.0 88 Paraguay 5.7

38 Philippines* 159.8 89 Latvia* 5.5

39 Trinidad &Tobago*

156.9 90 Bangladesh* 5.0

40 Korea* 153.2 91 Honduras 4.9

41 Malaysia* 133.9 92 Ukraine* 4.6

42 Panama 124.0 93 Macedonia 4.0

43 Turkey* 121.5 94 Nepal 2.6

44 Barbados 120.6 95 Kazakhstan 2.1

45 Poland* 103.3 96 Azerbaijan 1.5

46 Slovenia(FYR)*

87.5 97 Slovakia* 1.2

47 Russia* 86.9 98 Bulgaria* 1.0

48 Thailand* 83.5 99 U.A.E. 0.7

49 Colombia* 81.9 100 Armenia 0.2

50 Venezuela* 80.7 101 Romania* 0.2

51 Indonesia* 77.0 102 Mongolia 0.1

Notes: Average company size is calculated by dividing end−1998 total marketcapitalization of listed domestic companies in US$ millions by end−1998 number oflisted domestic companies, excluding listed investment funds where possible. See StockMarket Reference List in Appendix 1 for stock exchanges included in each market'stotal.



Top 25 Markets by Average Company Size, 1998

Emerging Markets Local Stock Market Price Indexes, 1998:(End of Period Levels)

Market Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Latin America

Argentina Bolsa Indice General(1977=0.0001)

21,046 22,725 23,395 23,230 20,543 19,551 20,909 14,488 16,344 18,264 18,958 17,409

Brazil IBOVESPA(1968=0.000000001)

9,720 10,571 11,947 11,677 9,847.0 9,678.0 10,707.0 6,472.0 6,593.0 7,047.0 8,631.0 6,784.0

Chile IGPA (Jan. 1980=100) 4,321.6 4,514.4 4,833.2 4,589.5 4,318.0 4,065.4 4,119.6 3,257.4 3,268.6 3,396.8 3,961.9 3,594.8

Colombia IBB (Jan. 2, 1991=100)1,362.2 1,185.4 1,179.0 1,233.4 1,183.9 1,123.5 1,073.4 902.4 860.6 825.6 1,025.6 1,109.2

Mexico BMV General (Oct.1978=0.7816)

4,569.4 4,784.5 5,016.2 5,098.5 4,530.0 4,282.6 4,245.0 2,991.9 3,569.9 4,074.9 3,769.9 3,933.2

Peru IGBVL (Dec.1991=100)

1,624.7 1,585.8 1,705.8 1,889.5 1,815.1 1,641.6 1,714.7 1,265.5 1,246.9 1,231.6 1,581.6 1,335.9

Venezuela Indice deCapitalizacion (Dec.1993=1,000)

7,332.8 7,175.6 7,685.8 6,079.9 6,175.7 4,770.5 4,848.0 2,904.0 3,893.9 3,631.2 3,944.0 4,788.7

Asia


Emerging Markets Local Stock Market Price Indexes, 1998: (End of Period Levels) 57

China Shanghai S.E. Comp.(Dec. 19, 1990=100)

1,222.9 1,206.5 1,242.2 1,343.3 1,411.2 1,339.2 1,316.9 1,150.2 1,242.9 1,217.3 1,247.4 1,146.7

India BSE 200 Index(1989−90=100)

313.6 348.3 376.6 398.3 375.7 325.8 324.5 305.1 320.4 293.7 291.5 314.0

Indonesia JSE Composite (Aug.10, 1982=100)

485.9 482.4 541.4 460.1 420.5 445.9 481.7 342.4 276.2 300.8 386.3 398.0

Korea KSE Composite (Jan.1980=100)

558.3 548.4 481.0 421.2 336.6 297.9 343.3 310.2 310.3 384.8 451.9 562.5

Malaysia KLSE Composite (Jan.1977=100)

569.5 745.4 719.5 626.0 538.2 455.6 402.7 302.9 373.5 405.3 501.5 586.1

Pakistan KSE 100 Index (Nov.1, 1991=1,000)

1,609.2 1,650.3 1,553.1 1,562.2 1,040.2 879.6 920.5 970.8 1,111.5 841.7 1,051.0 945.2

Philippines PSE Composite (Jan. 2,1985=100)

1,948.0 2,266.3 2,238.4 2,181.3 2,011.5 1,760.1 1,607.6 1,192.3 1,259.6 1,755.0 1,975.4 1,968.8

Sri Lanka CSE Sensitive Share(Jan. 1985=100)

1,016.4 1,075.9 1,111.5 1,236.6 1,024.1 842.0 893.5 701.0 710.6 723.1 881.4 923.0

Taiwan,China

TSE Average(1966=100)

8,085.5 9,202.6 9,091.2 8,304.2 7,903.3 7,548.8 7,653.5 6,550.1 6,834.0 7,101.5 7,177.2 6,418.4

Thailand SET (Apr. 30,1975=100)

495.2 528.4 459.1 412.1 325.6 267.3 266.7 214.5 253.8 331.3 361.1 355.8

Europe

Czech Republic PX 50 (April 1994=1,000) 455.7 477.4 505.0 500.9 454.0 467.0 491.3 377.4 359.8 388.3 389.5 394.2

Greece ASE General(1980=100)

1,395.4 1,419.2 2,005.8 2,621.4 2,591.0 2,365.5 2,797.4 2,175.5 2,120.9 2,162.9 2,511.8 2,737.6

Hungary BSE BUX (Jan. 2,1992=1,000)

7,421.7 8,256.9 8,656.2 8,552.2 7,057.1 7,805.7 8,215.3 5,252.5 4,571.1 5,312.1 5,976.3 6,307.7

Poland WIG All Share Perf.(Apr. 1991=1,000)

14,602 17,621 16,864 17,744 15,683 15,729 16,534 11,636 12,238 12,345 11,778 12,796

Portugal BVL General (Jan.1988=1,000)

2,193.2 2,428.9 2,805.2 3,004.9 2,926.1 2,751.1 2,819.3 2,436.9 2,025.7 2,365.2 2,413.0 2,427.3

Russia ASP General 100 (June20, 1994=100)

1,321.4 1,329.4 1,401.6 1,336.7 872.7 734.1 697.5 503.1 726.3 828.6 1,103.8 1,035.6

Slovakia SAX (Dec. 1992=100) 154.8 150.1 139.2 130.7 111.8 108.0 111.3 113.5 100.8 89.4 82.6 94.0

Turkey National−100 (Jan.1986=1)

3,547.2 3,272.2 3,259.1 4,194.5 3,727.8 4,100.0 4,322.3 2,635.1 2,265.9 2,196.4 2,577.5 2,597.9

Mideast/Africa

Egypt EFG (Jan. 2, 5,044.9 5,021.5 5,239.5 5,150.5 4,741.2 4,504.8 4,498.8 3,918.8 4,155.7 3,915.8 3,908.8 4,003.8


Emerging Markets Local Stock Market Price Indexes, 1998: (End of Period Levels) 58

1993=1,000)

Israel Tel Aviv 100 (Dec.1991=100)

267.1 282.3 302.8 307.4 326.8 319.0 318.6 293.6 280.8 280.3 296.5 299.9

Jordan AFM (Dec.91=100) 166.8 168.4 165.8 170.3 180.3 174.6 180.2 179.5 171.3 161.0 165.2 169.8

Morocco Upline Securities (Dec.31, 1989=10,000)

89,538 94,369.0 98,838 111,066 118,141 116,933 115,198 125,711 121,836 117,568 112,185 110,041

Nigeria NSE All Share(1984=100)

6,435.6 6,426.2 6,298.5 6,113.9 6,033.9 5,892.1 5,817.0 5,795.7 5,697.7 5,671.0 5,688.2 5,680.1

SaudiArabia

NCFEI (Feb.1985=100)

1,942.5 1,817.8 1,678.0 1,784.1 1,783.3 1,736.9 1,733.4 1,658.4 1,630.1 1,478.1 1,454.1 1,413.1

SouthAfrica

JSE Overall (Jan.1960=100)

6,550.3 7,095.7 7,578.9 8,235.5 7,629.6 6,771.6 7,020.4 4,923.4 5,098.6 5,828.3 5,620.9 5,430.5

Zimbabwe ZSE Industrial (Dec.31, 1966=100)

7,895.7 7,879.5 8,795.7 7,724.7 7,307.2 7,417.9 7,003.1 5,577.7 5,730.7 5,832.5 5,883.7 6,408.4

Emerging Markets Local Stock Market Price Indexes, 1998:(Monthly % Changes)


Latin America


−8.78 7.98 2.95 −0.71 −11.57 −4.83 6.94 −30.70 12.80 11.74 3.80 −8.17


−4.67 8.76 13.02 −2.26 −15.67 −1.72 10.63 −39.55 1.87 6.89 22.48 −21.40

Chile IGPA (Jan. 1980=100) −9.86 4.46 7.06 −5.04 −5.92 −5.85 1.33 −20.93 0.35 3.92 16.64 −9.27

Colombia IBB (Jan. 2, 1991=100) −4.85 −12.98 −0.54 4.62 −4.01 −5.11 −4.46 −15.93 −4.63 −4.07 24.23 8.15


−12.62 4.71 4.84 1.64 −11.15 −5.46 −0.88 −29.52 19.32 14.15 −7.48 4.33

Peru IGBVL (Dec. 1991=100) −9.45 −2.39 7.57 10.77 −3.94 −9.56 4.45 −26.20 −1.47 −1.23 28.42 −15.54

Venezuela Indice de Capitalizacion(Dec. 1993=1,000)

−15.29 −2.14 7.11 −20.89 1.57 −22.75 1.62 −40.10 34.09 −6.75 8.61 21.42

Asia


3.54 −1.34 2.96 8.14 5.06 −5.10 −1.66 −12.66 8.06 −2.06 2.47 −8.07


−12.60 11.04 8.15 5.75 −5.66 −13.28 −0.40 −5.98 5.02 −8.34 −0.75 7.69

Indonesia 20.97 −0.73 12.24 −15.01 −8.62 6.05 8.03 −28.91 −19.36 8.92 28.43 3.05


Emerging Markets Local Stock Market Price Indexes, 1998: (Monthly % Changes) 59

JSE Composite (Aug. 10,1982=100)


48.37 −1.77 −12.29 −12.44 −20.08 −11.51 15.26 −9.66 0.05 23.98 17.45 24.47


−4.19 30.88 −3.47 −13.00 −14.02 −15.35 −11.63 −24.77 23.31 8.52 23.72 16.88

Pakistan KSE 100 Index (Nov. 1,1991=1,000)

−7.85 2.55 −5.89 0.59 −33.42 −15.44 4.65 5.46 14.49 −24.27 24.86 −10.06


3.00 16.34 −1.23 −2.55 −7.79 −12.49 −8.67 −25.84 5.65 39.33 12.55 −0.33

Sri Lanka CSE Sensitive Share (Jan.1985=100)

−4.83 5.85 3.31 11.26 −17.18 −17.78 6.12 −21.54 1.38 1.75 21.89 4.72

Taiwan,China

TSE Average (1966=100)−0.74 13.82 −1.21 −8.66 −4.83 −4.49 1.39 −14.42 4.33 3.91 1.07 −10.57

Thailand SET (Apr. 30, 1975=100) 32.88 6.70 −13.12 −10.23 −21.00 −17.89 −0.23 −19.57 18.31 30.52 9.01 −1.48

Europe

Czech Republic PX 50 (April 1994=1,000) −8.00 4.76 5.78 −0.81 −9.36 2.86 5.20 −23.18 −4.66 7.92 0.31 1.21

Greece ASE General (1980=100) −5.69 1.71 41.33 30.69 −1.16 −8.71 18.26 −22.23 −2.51 1.98 16.13 8.99


−7.22 11.25 4.84 −1.20 −17.48 10.61 5.25 −36.06 −12.97 16.21 12.50 5.54

Poland WIG All Share Perf. (Apr.1991=1,000)

−0.45 20.68 −4.30 5.22 −11.61 0.29 5.12 −29.63 5.18 0.88 −4.60 8.64


−53.40 10.74 15.49 7.12 −2.62 −5.98 2.48 −13.56 −16.87 16.76 2.02 0.60

Russia ASP General 100 (June 20,1994=100)

−25.44 0.61 5.43 −4.63 −34.72 −15.88 −4.98 −27.88 44.37 14.08 33.21 −6.17

Slovakia SAX (Dec. 1992=100) −15.16 −3.07 −7.22 −6.15 −14.43 −3.42 3.02 2.03 −11.25 −11.25 −7.58 13.75


2.79 −7.75 −0.40 28.70 −11.13 9.99 5.42 −39.03 −14.01 −3.07 17.35 0.79

Mideast/Africa

Egypt EFG (Jan. 2, 1993=1,000)−5.98 −0.46 4.34 −1.70 −7.95 −4.99 −0.13 −12.89 6.04 −5.77 −0.18 2.43


−8.21 5.68 7.28 1.52 6.32 −2.38 −0.13 −7.85 −4.37 −0.17 5.76 1.16

Jordan AFM (Dec. 91=100) −1.42 0.95 −1.57 2.74 5.85 −3.14 3.17 −0.38 −4.59 −6.00 2.60 2.81

Morocco Upline Securities (Dec. 31,1989=10,000)

1.06 5.40 4.74 12.37 6.37 −1.02 −1.48 9.13 −3.08 −3.50 −4.58 −1.91


Emerging Markets Local Stock Market Price Indexes, 1998: (Monthly % Changes) 60

Nigeria NSE All Share (1984=100)−0.08 −0.15 −1.99 −2.93 −1.31 −2.35 −1.27 −0.37 −1.69 −0.47 0.30 −0.14

SaudiArabia

NCFEI (Feb. 1985=100) − −6.42 −7.69 6.32 −0.04 −2.60 −0.20 −4.33 −1.71 −9.32 −1.62 −2.82

SouthAfrica


5.62 8.33 6.81 8.66 −7.36 −11.25 3.67 −29.87 3.56 14.31 −3.56 −3.39

Zimbabwe ZSE Industrial (Dec. 31,1966=100)

9.72 −0.21 11.63 −12.18 −5.40 1.52 −5.59 −20.35 2.74 1.78 0.88 8.92

Frontier Emerging Markets Local Stock Market Price Indexes, 1998:(End of Period Levels)

Note: In September 1998, IFC switched from the BVA Index to the BRVM All−Share Index for Cote d'Ivoire.

Frontier Emerging Markets Local Stock Market Price Indexes, 1998:(Monthly % Changes)


Frontier Markets

Bangladesh DSE All Share Price(1985=100)

−1.98 −7.32 −6.22 −10.92 9.36 7.69 −3.56 −10.49 2.85 −1.03 −4.00 −5.33

Botswana Botswana DCI(1989=100)

1.31 4.68 7.90 12.48 5.23 −1.09 1.05 1.76 −2.53 −0.66 3.15 −2.86

Bulgaria BSE Composite (Dec.1992=100)

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cote d'Ivoire BRVM All−Share (Sept.16, 1998=100)

−1.66 1.18 1.27 3.61 3.52 2.12 1.89 1.18 // −1.07 −9.86 0.26


Frontier Emerging Markets Local Stock Market Price Indexes, 1998: (End of Period Levels) 61

Croatia CROBEX (July 1,1997=1,000)

−8.80 12.22 0.27 −9.22 −11.65 0.00 −3.73 −41.71 21.24 7.09 17.47 1.40

Ecuador BVG (Jan. 3, 1994=100)−0.87 4.20 4.31 0.21 −0.66 −2.96 1.83 3.49 −3.60 −1.48 −1.11 0.06

Estonia TALSE (June 3,1996=100)

−1.20 −13.39 13.40 −9.37 −16.71 −31.73 5.15 7.92 −31.61 −6.61 6.49 −11.43

Ghana GSE All Share Index(1990−93=100)

9.98 15.21 30.96 39.50 −13.17 −5.67 4.33 −3.16 −12.85 −8.18 −1.03 11.85

Jamaica JSE (June 30,1969=100)

−1.35 4.38 1.57 −3.21 2.60 5.97 15.97 −0.14 −5.47 −16.15 −5.53 8.72

Kenya NSE (Jan. 1, 1964=100)7.40 0.42 −4.43 −6.17 0.05 −3.58 −1.39 −0.19 −1.83 −2.73 −5.49 14.64

Latvia Dow Jones RSE (Apr. 2,1996=100)

−5.92 0.05 −5.92 −6.84 −13.16 −16.54 −0.37 −39.60 −8.80 −22.15 9.61 1.17

Lithuania LITIN−G (Jan. 2,1996=1,000)

−10.16 −1.09 7.98 −3.49 −4.64 −3.84 −6.64 −10.08 −10.78 −8.78 1.07 −0.31

Mauritius SEMDEX (July 5,1989=100)

3.72 2.18 4.42 5.16 0.40 2.40 12.68 −2.27 −10.40 −2.16 0.67 2.56

Romania BET (Sept. 19,1997=1,000)

−3.99 11.55 −2.29 1.46 −17.59 −4.50 −11.74 −35.63 −18.18 0.48 27.35 0.24

Slovenia SSEI (Dec. 1993=1,000)0.77 4.84 9.78 2.63 0.00 0.45 12.60 −5.86 −1.25 −5.88 −0.15 3.23

Trinidad &Tobago

TTSE (Jan. 1983=100) 2.35 2.22 3.62 4.29 0.70 8.27 1.75 8.36 −4.87 −0.40 −2.91 −1.04

Tunisia BVM General (Sept. 30,1990=100)

0.96 0.50 0.74 −0.09 −0.65 −1.03 −0.79 1.53 0.28 0.54 −0.33 0.32

Ukraine PFTS (Oct. 10,1997=100)

−15.89 −9.01 −3.05 −11.00 −17.83 −20.04 13.55 −33.19 −14.70 −22.87 22.12 −0.47


Emerging Markets Local Stock Market Price Indexes, 1989−1998:(End of Period Levels)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America


717.2 2,202.9 17,856.0 13,427.5 20,607.2 15,855.6 16,237.8 18,494.9 23,072.0 17,409.0


0.006 0.025 0.608 6.781 375.5 4,353.9 4,299.0 7,039.9 10,196.0 6,784.0

Chile IGPA (Jan. 1980=100) 757.6 1,166.7 2,483.7 2,733.5 3,915.5 5,425.2 5,740.0 4,902.6 4,794.4 3,594.8


Emerging Markets Local Stock Market Price Indexes, 1989−1998: (End of Period Levels) 62

Colombia IBB (Jan. 2, 1991=100) 975.9 1,392.3 // 358.1

499.9 749.1 889.9 755.0 844.1 1,431.7 1,109.2


418.9 628.8 1,431.5 1,759.4 2,602.6 2,375.7 2,778.5 3,361.0 5,229.3 3,959.7

Peru IGBVL (Dec. 1991=100) 0.336 25.800 100.0 372.9 930.5 1,414.9 1,243.4 1,429.0 1,792.7 1,335.9


2,754.0 17,881.9 29,316.6 19,874.1 1,000.0 // 1,348.8

2,019.4 6,690.1 8,656.0 4,788.7

Asia


− − 292.8 780.4 833.8 647.9 555.2 917.0 1,194.1 1,146.7


839.9 1,040.7 // 233.6

314.8 407.5 442.5 313.7 305.1 354.4 314.0

Indonesia JSE Composite (Aug. 10,1982=100)

399.7 417.8 247.4 274.3 588.8 469.6 513.8 637.4 401.7 398.0


909.7 696.1 610.9 678.4 866.2 1,027.4 882.9 651.2 376.3 562.5


565.3 505.9 556.2 644.0 1,275.3 971.2 995.2 1,238.0 594.4 586.1


277.3 308.5 718.2 // 1,243.72,164.3 2,049.1 1,497.8 1,339.9 1,753.8 945.2


1,110.6 653.1 1,154.3 1,272.4 3,241.9 2,785.8 2,594.2 3,170.6 1,869.2 1,968.8


341.7 680.3 1,198.6 826.6 1,442.4 1,438.8 990.5 897.7 1,068.0 923.0

Taiwan,China

TSE Average (1966=100)9,624.2 4,530.2 4,600.7 3,377.1 6,070.6 7,124.7 5,173.7 6,933.9 8,187.3 6,418.4

Thailand SET (Apr. 30, 1975=100)879.2 612.9 711.4 893.4 1,682.8 1,360.1 1,280.8 831.6 372.7 355.8

Europe

Czech Republic PX 50 (April 1994=1,000)− − − − − 557.2 425.9 539.6 495.3 394.2

Greece ASE General (1980=100)459.4 932.0 809.7 672.3 958.7 868.9 914.1 933.5 1,479.6 2,737.5

Hungry BSE BUX (Jan. 2,1992=1,000)

− − 837.6 890.9 1,264.1 1,470.1 1,528.9 4,134.3 7,999.1 6,307.7


− − 919.1 1,040.7 12,439.0 7,473.1 7,585.9 14,342.8 14,668.0 12,795.6


3,287.0 2,143.4 1,977.7 1,637.9 // 848.0

919.9 887.7 1,163.5 1,922.7 2,427.3

Russia − − − − − − − 534.5 1,772.2 1,032.6


Emerging Markets Local Stock Market Price Indexes, 1989−1998: (End of Period Levels) 63

ASP General 100 (June20, 1994=100)

Slovakia SAX (Dec. 1992=100) − − − − 109.6 214.3 153.8 179.0 182.5 94.0


22.2 32.6 43.7 40.0 206.8 272.6 400.2 975.9 3,451.0 2,597.9

Mideast/Africa

Egypt EFG (Jan. 2, 1993=1,000)− − − 1,000.0 1,377.0 3,537.3 3,269.6 4,615.1 5,365.7 4,003.8


− − 313.9 191.6 270.1 163.8 186.7 184.8 291.0 299.9

Jordan AFM (Dec. 91=100) 93.3 80.4 100.0 129.9 158.4 143.6 159.2 153.5 169.2 170.1

Morocco Upline Securities (Dec.31, 1989=10,000)

122.6 158.6 187.5 201.8 259.8 342.3 // 41,929.0

56,034.0 88,595.0 110,263.0

Nigeria NSE All Share(1984=100)

325.3 513.8 784.0 1,107.6 1,543.8 2,205.0 5,092.1 6,992.1 6,440.5 5,672.8

SaudiArabia

NCFEI (Feb. 1985=100) − − 178.8 188.9 179.3 128.2 136.8 153.1 195.8 141.3

SouthAfrica


2,976.0 2,719.7 3,440.3 3,259.0 4,893.0 5,867.0 6,228.0 6,657.5 6,202.3 5,430.5


869.1 2,282.6 1,953.6 865.6 2,325.3 3,160.8 3,972.6 8,786.3 7,196.4 6,408.4

Notes:In India, IFC switched from using the F.E. Bombay Index to the BSE 200 because the latter is more representative of market movements. For the same reason, IFC switched from using the

SPB Index in Pakistan to the KSE Index. In Venezuela, the Indice de Capitalization replaced the New BVC Index. In Colombia, the IBB Index replaced the General Index. In Morocco, IFCreplaced the IMGA Index with the Upline Securities Index in 1998. All local index time series in this Factbook have been adjusted to reflect the new indexes for as far back as data for these indexesis available.

Emerging Markets Local Stock Market Price Indexes, 1989−1998:(Annual % Change)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America


17,231.80207.15 710.57 −24.80 53.47 −23.06 2.41 13.90 24.75 −24.54


1,762.49 308.44 2,315.58 1,015.65 5,437.20 1,059.65 −1.26 63.76 44.83 −33.46

Chile IGPA (Jan. 1980=100) 64.76 54.00 112.88 10.06 43.24 38.56 5.80 −14.59 −2.21 −25.02

Colombia IBB (Jan. 2, 1991=100) 11.90 42.67 // −39.60 49.85 18.80 −15.16 11.80 69.61 −22.53


Emerging Markets Local Stock Market Price Indexes, 1989−1998: (Annual % Change) 64


98.04 50.11 127.66 22.91 47.93 −8.72 16.96 20.96 55.59 −24.28

Peru IGBVL (Dec. 1991=100) 3,817.90 7,578.57 287.60 272.90 149.53 52.06 −12.12 14.93 25.45 −25.48


−28.80 549.31 63.95 −32.21 // −

34.88 49.72 231.29 29.39 −44.68

Asia

China Shanghai S.E. Comp. (Dec.19, 1990=100)

− − − −12.87 6.84 −22.30 −14.31 65.17 30.22 −3.97


32.38 23.90 // −34.76 29.45 8.59 −29.11 −2.74 16.16 −11.40

Indonesia JSE Composite (Aug. 10,1982=100)

31.04 4.53 −40.79 10.87 114.66 −20.24 9.41 24.06 −36.98 −0.92


0.28 −23.48 −12.24 11.05 27.68 18.61 −14.06 −26.24 −42.21 49.48


58.17 −10.51 9.94 15.79 98.03 −23.85 2.47 24.40 −51.99 −1.40


5.55 11.25 132.80 // −

74.02 −5.32 −26.90 −10.54 30.89 −46.11


31.24 −41.19 76.74 10.23 154.79 −12.84 −6.88 22.22 −41.05 5.33


− 99.09 76.19 −31.04 74.50 −0.25 −31.16 −9.37 18.97 −13.58

Taiwan, China TSE Average (1966=100) 88.00 −52.93 1.56 −26.60 79.76 17.36 −27.38 34.02 18.08 −21.61

Thailand SET (Apr. 30, 1975=100) 127.34 −30.29 16.07 25.58 88.36 −19.18 −5.83 −35.07 −55.18 −4.53

Europe

Czech RepublicPX 50 (April 1994=1,000) − − − − − − −23.56 26.70 −8.21 −20.41

Greece ASE General (1980=100) 64.29 102.87 −13.12 −16.97 42.60 −9.37 5.20 2.12 58.50 85.02


− − − 6.36 41.89 16.30 4.00 170.41 93.48 −21.14


− − − 13.23 1,095.25 −39.92 1.51 89.07 2.27 −12.77


39.52 −34.79 −7.73 −17.18 // −

8.48 −3.50 31.07 65.24 −48.43

Russia ASP General 100 (June 20,1994=100)

− − − − − − − − 231.56 −41.73

Slovakia SAX (Dec. 1992=100) − − − − − 95.6 −28.23 16.38 1.96 −48.49


Emerging Markets Local Stock Market Price Indexes, 1989−1998: (Annual % Change) 65


493.07 46.85 34.05 −8.47 417.00 31.82 46.81 143.85 253.62 −24.72

Mideast/Africa

Egypt EFG (Jan. 2, 1993=1,000) − − − − 37.70 156.89 −7.57 41.15 16.27 −25.40


− − − −38.96 40.97 −39.36 13.98 −1.02 57.47 3.06

Jordan AFM (Dec. 91=100) 10.41 −13.83 24.38 29.90 21.94 −9.34 10.86 −3.58 10.23 0.53

Morocco Upline Securities (Dec. 31,1989=10,000)

−26.60 29.36 18.22 7.63 28.74 31.76 // − 33.64 58.11 24.46

Nigeria NSE All Share (1984=100)39.26 57.95 52.59 41.28 39.38 42.83 130.93 37.31 −7.89 −11.92

Saudi Arabia NCFEI (Feb. 1985=100) − − − 5.65 −5.08 −28.50 6.71 11.92 27.89 −27.83

South Africa JSE Overall (Jan.1960=100)

− −8.61 26.50 −5.27 50.14 19.91 6.15 6.90 −6.84 −12.44


− 162.64 −14.41 −55.69 168.63 35.93 25.68 121.17 −18.10 −10.95

Notes: In India, IFC switched from using the F.E. Bombay Index to the BSE 200 because the latter is more representative of marketmovements. For the same reason, IFC switched from using the SPB Index in Pakistan to the KSE Index. In Venezuela, the Indice deCapitalization replaced the New BVC Index. In Colombia, the IBB Index replaced the General Index. In Morocco, IFC replaced the IMGAIndex with the Upline Securities Index in 1998. All local index time series in this Factbook have been adjusted to reflect the new indexes for asfar back as data for these indexes is available.

Frontier Emerging Markets Local Stock Market Price Indexes, 1989−1998:(End of Period Levels)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Frontier Markets


467.8 350.8 296.3 369.6 391.8 845.6 834.7 2,300.1 756.8 540.2

Botswana Botswana DCI(1989=100)

− 230.4 271.7 273.7 278.5 312.9 332.8 352.2 708.5 946.9


− − − − 118.4 113.6 104.3 77.6 77.6 77.6

Coted'Ivoire*

BRVM All−Share (Sept.16, 1998=100)

106.9 103.7 102.2 62.9 90.5 125.6 277.2 357.8 437.6 // 98.0


− − − − − − − 1,000.0 1,002.1 715.8


Frontier Emerging Markets Local Stock Market Price Indexes, 1989−1998: (End of Period Levels) 66

Ecuador BVG (Jan. 3, 1994=100) − − − − − 174.6 154.4 198.8 217.5 223.1


− − − − − − − − 257.3 90.7


− − − 79.1 170.8 371.7 298.1 360.8 511.7 868.3

Jamaica JSE (June 30, 1969=100)2,075.8 2,539.4 7,681.5 25,745.9 13,099.7 16,676.7 14,267.0 16,616.0 19,846.7 20,593.3

Kenya NSE (Jan. 1, 1964=100) 815.8 915.3 958.3 1,167.3 2,513.7 4,559.4 3,468.9 3,114.1 3,115.1 2,962.1


− − − − − − − − 345.9 98.0


− − − − − − − 1,327.5 1,862.9 1,088.8


− 171.2 154.2 183.2 302.6 473.7 344.4 353.5 391.1 465.6


− − − − − − − − 757.9 377.7

Slovenia SSEI (Dec. 1993=1,000) − − − − 1,000.0 1,396.8 1,448.8 1,183.3 1,404.7 1,705.8

Trinidad&Tobago

TTSE (Jan. 1983=100) 48.7 83.1 81.8 60.2 82.5 88.6 150.2 167.4 352.3 436.3


− 127.8 170.6 199.4 251.0 507.2 534.7 570.6 455.6 464.6

Ukraine PFTS (Oct. 10,1997=100)

− − − − − − − − 79.7 21.0


Frontier Emerging Markets Local Stock Market Price Indexes, 1989−1998:(Annual % Change)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Frontier Markets


−12.3 −25.0 −15.5 24.7 6.0 115.8 −1.3 175.6 −67.1 −28.6

Botswana Botswana DCI (1989=100)− − 17.9 0.7 1.8 12.4 6.4 5.8 101.2 33.6


− − − − − −4.1 −8.2 −25.6 0.0 0.0

Cote d'Ivoire BRVM All−Share (Sept.16, 1998=100)

1.7 −3.0 −1.4 −38.5 43.9 38.8 120.7 29.1 22.3 // −


Frontier Emerging Markets Local Stock Market Price Indexes, 1989−1998: (Annual % Change) 67


− − − − − − − − − −28.6

Ecuador BVG (Jan. 3, 1994=100) − − − − − − −11.6 28.8 9.4 2.6


− − − − − − − − − −64.8


− − − − 116.1 117.6 −19.8 21.0 41.8 69.7

Jamaica JSE (June 30, 1969=100) 44.2 22.3 202.5 235.2 −49.1 27.3 −14.4 16.5 19.4 3.8

Kenya NSE (Jan. 1, 1964=100) −5.0 12.2 4.7 21.8 115.3 81.4 −23.9 −10.2 0.0 −4.9


− − − − − − − − − −71.7


− − − − − − − − 40.3 −41.6


− − −9.9 18.8 65.2 56.5 −27.3 2.6 10.6 19.0


− − − − − − − − − −50.2

Slovenia SSEI (Dec. 1993=1,000) − − − − − − 3.7 −18.3 18.7 21.4

Trinidad &Tobago

TTSE (Jan. 1983=100) 50.3 70.6 −1.6 −26.4 37.0 7.4 69.5 11.5 110.5 23.8


− − 33.5 16.9 25.9 102.1 5.4 6.7 −20.2 2.0

Ukraine PFTS (Oct. 10, 1997=100)− − − − − − − − − 73.7


Emerging Markets Currency Exchange Rates per US$, 1998:(End of Period Levels)


Latin America

Argentina 0.9996 0.9995 0.9999 0.9999 0.9995 0.9999 0.9995 0.9998 0.9999 0.9997 0.9998 0.9991

Brazil 1.1231 1.1302 1.1371 1.1440 1.1502 1.1566 1.1630 1.1769 1.1852 1.1929 1.2009 1.2083

Chile 455.000 449.650 453.750 452.750 454.950 466.500 465.950 472.650 467.250 462.600 467.950 473.250

Colombia 1,342.4001,343.1501,361.0001,364.3501,397.6001,371.6201,372.3501,442.3501,559.0501,575.5001,545.3751,547.500

Mexico 8.4600 8.5235 8.5180 8.4895 8.8160 8.9860 8.9215 9.9695 10.1900 10.1230 10.0095 9.8900


Emerging Markets Currency Exchange Rates per US$, 1998: (End of Period Levels) 68

Peru 2.7715 2.8140 2.8085 2.8230 2.8618 2.9395 2.9285 3.0140 3.0535 3.0680 3.1235 3.1560

Venezuela 510.680 517.000 524.800 536.225 538.500 552.755 562.855 582.005 573.375 567.575 572.250 564.505

Asia

China 8.2785 8.2789 8.2793 8.2779 8.2793 8.2797 8.2799 8.2800 8.2780 8.2778 8.2782 8.2789

India 38.8200 39.3500 39.4825 39.7150 41.6750 42.3750 42.5400 42.5200 42.4028 42.3600 42.5800 42.4963

Indonesia 10,500.008,850.00 8,650.00 8,075.00 11,300.0014,800.0013,150.0011,200.0010,700.007,600.00 7,425.00 7,950.00

Korea 1,524.0 1,633.0 1,385.0 1,336.5 1,407.5 1,373.0 1,230.5 1,350.5 1,390.8 1,319.5 1,246.0 1,202.5

Malaysia 4.1811 3.6750 3.6400 3.7400 3.8405 4.1475 4.1175 4.1853 3.8000 3.8000 3.8000 3.8000

Pakistan 44.0060 44.0060 44.1525 44.0700 44.4750 46.1050 49.3450 50.0075 50.1325 50.8950 49.9950 49.0230

Philippines 42.6500 39.9000 37.9000 40.1500 38.9500 41.7000 42.1000 43.8000 43.7500 40.3500 39.4000 38.9000

Sri Lanka 62.2500 61.7700 62.4300 63.3050 64.9300 65.4000 65.9250 66.3850 65.9850 67.0750 67.9000 68.4300

Taiwan, China 34.0480 32.0760 32.8670 32.9745 33.9750 34.3605 34.3650 34.8550 34.3745 32.4640 32.4310 32.2175

Thailand 52.7500 43.1000 39.2500 38.6750 40.3900 42.3000 40.8500 41.9000 39.5300 36.7450 36.1000 36.3350

Europe

Czech Republic35.2970 33.9970 34.2225 32.8675 32.9675 32.6345 30.8085 32.5070 30.2655 29.0040 30.4305 30.0310

Greece 289.580 287.680 319.780 314.445 304.500 304.280 295.540 303.650 288.005 281.525 283.730 280.050

Hungary 208.065 208.695 213.305 210.955 214.065 218.780 215.960 224.280 218.600 216.910 219.300 215.295

Poland 3.5435 3.4775 3.4530 3.3965 3.4910 3.4870 3.4343 3.7250 3.5730 3.4455 3.4815 3.5100

Portugal 187.040 185.805 189.395 183.950 182.450 184.720 181.955 180.630 171.545 169.765 173.405 170.732

Russia 6.0423 6.0485 6.0980 6.1295 6.1695 6.2295 6.2810 9.9500 16.0250 16.7000 18.4500 21.5500

Slovakia 35.5040 35.0060 35.5360 34.5050 34.4950 35.1340 34.7190 35.3500 34.7630 35.0780 36.4255 36.8250

Turkey 218,725 230,875 243,055 250,025 258,320 266,400 271,250 277,590 277,615 288,005 303,500 315,400

Mideast/Africa

Egypt 3.4125 3.4038 3.4063 3.4100 3.4113 3.4113 3.4245 3.4110 3.4100 3.4300 3.4143 3.4100

Israel 3.6003 3.5837 3.6024 3.7039 3.6544 3.6709 3.6458 3.7953 3.8453 4.2790 4.1916 4.1601

Jordan 0.7105 0.7110 0.7110 0.7115 0.7110 0.7110 0.7105 0.7120 0.7110 0.7120 0.7120 0.7120

Morocco 9.8620 9.8118 9.9126 9.7263 9.7090 9.7613 9.6870 9.6103 9.2488 9.2157 9.3630 9.2591

Nigeria 81.4750 84.8800 85.9000 86.0000 92.0000 86.4400 86.1800 89.7600 86.4000 86.2000 85.9500 89.0000

Saudi Arabia 3.7506 3.7508 3.7502 3.7503 3.7510 3.7509 3.7507 3.7515 3.7510 3.7507 3.7506 3.7510

South Africa 4.9370 4.9415 5.0390 5.0565 5.1560 5.8900 6.1400 6.4253 5.8800 5.6100 5.6900 5.8828


Emerging Markets Currency Exchange Rates per US$, 1998: (End of Period Levels) 69

Zimbabwe 17.0000 16.2000 16.1500 17.1000 17.9500 18.0100 19.6250 27.5000 32.5000 35.8000 37.1500 37.2150

Emerging Markets Currency Exchange Rates per US$, 1998:(Monthly % Change)


Latin America

Argentina 0.02 0.01 −0.04 0.00 0.04 −0.04 0.04 −0.03 −0.01 0.02 −0.01 0.07

Brazil −0.62 −0.63 −0.61 −0.60 −0.54 −0.55 −0.55 −1.18 −0.70 −0.65 −0.67 −0.61

Chile −3.63 1.19 −0.90 0.22 −0.48 −2.48 0.12 −1.42 1.16 1.01 −1.14 −1.12

Colombia −3.41 −0.06 −1.31 −0.25 −2.38 1.89 −0.05 −4.85 −7.49 −1.04 1.95 −0.14

Mexico −4.70 −0.74 0.06 0.34 −3.70 −1.89 0.72 −10.51 −2.16 0.66 1.13 1.21

Peru −1.64 −1.51 0.20 −0.51 −1.36 −2.64 0.38 −2.84 −1.29 −0.47 −1.78 −1.03

Venezuela −1.25 −1.22 −1.49 −2.13 −0.42 −2.58 −1.79 −3.29 1.51 1.02 −0.82 1.37

Asia

China 0.01 0.00 0.00 0.02 −0.02 0.00 0.00 0.00 0.02 0.00 0.00 −0.01

India 1.00 −1.35 −0.34 −0.59 −4.70 −1.65 −0.39 0.05 0.28 0.10 −0.52 0.20

Indonesia −47.67 18.64 2.31 7.12 −28.54 −23.65 12.55 17.41 4.67 40.79 2.36 −6.60

Korea 11.22 −6.67 17.91 3.63 −5.04 2.51 11.58 −8.89 −2.89 5.40 5.90 3.62

Malaysia −6.90 13.77 0.96 −2.67 −2.62 −7.40 0.73 −1.62 10.14 0.00 0.00 0.00

Pakistan 0.00 0.00 −0.33 0.19 −0.91 −3.54 −6.57 −1.32 −0.25 −1.50 1.80 1.98

Philippines −6.45 6.89 5.28 −5.60 3.08 −6.59 −0.95 −3.88 0.11 8.43 2.41 1.29

Sri Lanka −0.80 0.78 −1.06 −1.38 −2.50 −0.72 −0.80 −0.69 0.61 −1.63 −1.22 −0.77

Taiwan, China −4.05 6.15 −2.41 −0.33 −2.94 −1.12 −0.01 −1.41 1.40 5.88 0.10 0.66

Thailand −8.72 22.39 9.81 1.49 −4.25 −4.52 3.55 −2.51 6.00 7.58 1.79 −0.65

Europe

Czech Republic −1.77 3.82 −0.66 4.12 −0.30 1.02 5.93 −5.23 7.41 4.35 −4.69 1.33

Greece −2.03 0.66 −10.04 1.70 3.27 0.07 2.96 −2.67 5.43 2.30 −0.78 1.31

Hungary −1.85 −0.30 −2.16 1.11 −1.45 −2.16 1.31 −3.71 2.60 0.78 −1.09 1.86

Poland −0.52 1.90 0.71 1.66 −2.71 0.11 1.53 −7.80 4.25 3.70 −1.03 −0.81

Portugal −1.71 0.66 −1.90 2.96 0.82 −1.23 1.52 0.73 5.30 1.05 −2.10 1.57


Emerging Markets Currency Exchange Rates per US$, 1998: (Monthly % Change) 70

Russia −0.74 −0.10 −0.81 −0.51 −0.65 −0.96 −0.82 −36.87 −37.91 −4.04 −9.49 −14.39

Slovakia −1.70 1.42 −1.49 2.99 0.03 −1.82 1.20 −1.79 1.69 −0.90 −3.70 −1.08

Turkey −5.30 −5.26 −5.01 −2.79 −3.21 −3.03 −1.79 −2.28 −0.01 −3.61 −5.11 −3.77

Europe/Mideast/Africa

Egypt −0.29 0.26 −0.07 −0.11 −0.04 0.00 −0.39 0.40 0.03 −0.58 0.46 0.13

Israel −1.75 0.46 −0.52 −2.74 1.35 −0.45 0.69 −3.94 −1.30 −10.14 2.09 0.76

Jordan −0.17 −0.07 0.00 −0.07 0.07 0.00 0.07 −0.21 0.14 −0.14 0.00 0.00

Morocco −1.22 0.51 −1.02 1.92 0.18 −0.54 0.77 0.80 3.91 0.36 −1.57 1.12

Nigeria −7.06 −4.01 −1.19 −0.12 −6.52 6.43 0.30 −3.99 3.89 0.23 0.29 −3.43

Saudi Arabia 0.00 −0.01 0.02 0.00 −0.02 0.00 0.01 −0.02 0.01 0.01 0.00 −0.01

South Africa −1.43 −0.09 −1.93 −0.35 −1.93 −12.46 −4.07 −4.44 9.27 4.81 −1.41 −3.28

Zimbabwe 8.53 4.94 0.31 −5.56 −4.74 −0.33 −8.23 −28.64 −15.38 −9.22 −3.63 −0.17

Frontier Emerging Markets Currency Exchange Rates per US$, 1998:(End of Period Levels)


FrontierMarkets

Bangladesh 45.6604 46.4500 46.4500 46.4500 46.4500 46.4500 47.3084 47.3050 47.3088 47.3088 47.3088 47.3088

Botswana 3.8521 3.8536 3.8670 3.9047 3.9698 4.2571 4.6296 4.8733 4.4823 4.3649 4.4092 4.4563

Bulgaria 1,809.2 1,820.2 1,834.0 1,795.5 1,782.4 1,810.2 1,769.0 1,791.8 1,673.2 1,647.5 1,702.6 1,664.0

Cote d'Ivoire 615.50 607.93 619.42 601.40 591.02 605.04 596.50 601.25 559.90 554.10 567.15 560.50

Croatia 6.4390 6.4101 6.4907 6.4313 6.4541 6.4599 6.4124 6.5041 6.1781 6.1502 6.3670 6.2624

Ecuador 4,527.4 4,545.4 4,887.0 5,079.1 5,203.3 5,274.0 5,360.8 5,463.2 6,097.0 6,728.0 6,464.7 6,856.2

Estonia 14.6164 14.5197 14.7969 14.3500 14.2052 14.4588 14.2496 14.3000 13.3980 13.2440 13.6540 13.3388

Ghana 2,289.4 2,297.5 2,316.0 2,307.5 2,307.7 2,323.0 2,345.0 2,325.0 2,325.0 2,352.5 2,340.0 2,345.2

Jamaica 36.3223 36.0845 35.5000 36.4002 36.3522 36.2800 36.3100 36.3483 36.4856 37.1620 36.9000 36.9500

Kenya 60.0000 60.0000 60.0000 59.5500 63.5000 59.5000 59.0500 59.4000 60.0500 59.6500 60.0500 62.0500

Latvia 0.5903 0.5873 0.5933 0.5940 0.5970 0.6020 0.5990 0.6010 0.5830 0.5680 0.5800 0.5710

Lithuania 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0005

Mauritius 22.6695 22.9100 23.7370 23.8315 23.8910 24.2710 24.3720 24.5000 24.4500 24.5500 24.5780 24.5180

Romania 8,340.0 8,090.0 8,490.0 8,345.0 8,511.0 8,625.0 8,744.0 8,924.0 9,238.0 9,592.0 10,082.0 10,951.0


Frontier Emerging Markets Currency Exchange Rates per US$, 1998: (End of Period Levels) 71

Slovenia 170.76 171.93 172.16 168.35 166.61 169.58 167.70 169.14 158.08 156.37 162.99 161.40

Trinidad &Tobago

6.2999 6.2999 6.2995 6.2998 6.2999 6.2998 6.2990 6.2950 6.2998 6.2998 6.2998 6.2932

Tunisia 1.1500 1.1566 1.1801 1.1539 1.1525 1.1616 1.1485 1.1439 1.0939 1.0780 1.1123 1.0964

Ukraine 1.9295 2.0149 2.0383 2.0425 2.0573 2.0647 2.1349 2.2500 3.4050 3.4270 3.4270 3.4270

Frontier Emerging Markets Currency Exchange Rates per US$, 1998:(Monthly % Change)


FrontierMarkets

Bangladesh −1.47 −1.70 0.00 0.00 0.00 0.00 −1.81 0.01 −0.01 0.00 0.00 0.00

Botswana −1.33 −0.04 −0.35 −0.97 −1.64 −6.75 −8.05 −5.00 8.72 2.69 −1.00 −1.06

Bulgaria −1.86 −0.60 −0.75 2.14 0.73 −1.54 2.33 −1.27 7.09 1.56 −3.24 2.32

Cote d'Ivoire −5.95 1.25 −1.86 3.00 1.76 −2.32 1.43 −0.79 7.39 1.05 −2.30 1.19

Croatia −1.82 0.45 −1.24 0.92 −0.35 −0.09 0.74 −1.41 5.28 0.45 −3.41 1.67

Ecuador −1.58 −0.40 −6.99 −3.78 −2.39 −1.34 −1.62 −1.87 −10.39 −9.38 4.07 −5.71

Estonia −1.65 0.67 −1.87 3.11 1.02 −1.75 1.47 −0.35 6.73 1.16 −3.00 2.36

Ghana −2.00 −0.35 −0.80 0.37 −0.01 −0.66 −0.94 0.86 0.00 −1.17 0.53 −0.22

Jamaica −0.63 0.66 1.65 −2.47 0.13 0.20 −0.08 −0.11 −0.38 −1.82 0.71 −0.14

Kenya 4.33 0.00 0.00 0.76 −6.22 6.72 0.76 −0.59 −1.08 0.67 −0.67 −3.22

Latvia −0.22 0.51 −1.01 −0.12 −0.50 −0.83 0.50 −0.33 3.09 2.64 −2.07 1.58

Lithuania 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.74

Mauritius −2.15 −1.05 −3.48 −0.40 −0.25 −1.57 −0.41 −0.52 0.20 −0.41 −0.11 0.24

Romania −3.24 3.09 −4.71 1.74 −1.95 −1.32 −1.36 −2.02 −3.40 −3.69 −4.86 −7.94

Slovenia −2.08 −0.68 −0.13 2.26 1.04 −1.75 1.12 −0.85 7.00 1.09 −4.06 0.99

Trinidad &Tobago

0.00 0.00 0.01 0.00 0.00 0.00 0.01 0.06 −0.08 0.00 0.00 0.10

Tunisia −0.50 −0.57 −1.99 2.27 0.12 −0.78 1.14 0.40 4.57 1.47 −3.08 1.45

Ukraine −1.74 −4.24 −1.15 −0.21 −0.72 −0.36 −3.29 −5.12 −33.92 −0.64 0.00 0.00

Emerging Markets Currency Exchange Rates per US$, 1989−1998:(End of Period Levels)


Frontier Emerging Markets Currency Exchange Rates per US$, 1998: (Monthly % Change) 72

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina 0.1360 0.5670 0.9990 0.9980 1.0000 1.0001 0.9999 0.9998 0.9998 0.9991

Brazil 0.0113 0.1610 1.0902 12.2430 0.3209 0.8470 0.9720 1.0391 1.1161 1.2083

Chile 294.110 336.860 374.870 382.330 431.040 401.050 406.650 424.350 438.500 473.250

Colombia 423.090 523.000 705.410 811.770 811.900 831.600 990.750 1006.095 1,296.650 1,547.500

Mexico 2.6835 2.9480 3.0890 3.1160 3.1090 4.9250 7.7050 7.8720 8.0620 9.8900

Peru 0.0053 0.5400 0.9750 1.6350 2.1500 2.1810 2.3035 2.5970 2.7260 3.1560

Venezuela 43.5000 49.7400 60.8000 78.1600 104.4600 169.8700 339.5406 476.2550 504.3000 564.5050

Asia

China − 5.2221 5.4342 5.7518 8.7000 8.4462 8.3174 8.2984 8.2796 8.2789

India 16.840 18.150 25.800 28.680 31.130 31.369 35.165 35.825 39.210 42.496

Indonesia 1,797.0 1,889.0 1,984.0 2,063.5 2,103.0 2,198.0 2,286.5 2,362.5 5,495.0 7,950.0

Korea 677.400 714.500 758.700 788.400 808.100 788.500 775.750 845.500 1,695.000 1,202.500

Malaysia 2.6985 2.6983 2.7205 2.6150 2.6930 2.5535 2.5390 2.5255 3.8925 3.8000

Pakistan 21.2500 21.7200 24.6000 25.5000 29.9800 30.7692 34.2158 40.0799 44.0060 49.0230

Philippines 21.7700 27.2000 26.1500 25.6000 27.0000 24.4000 26.2300 26.3000 39.9000 38.9000

Sri Lanka 40.0000 40.2400 42.7138 46.0000 49.5600 49.6650 53.5000 56.7300 61.7500 68.4300

Taiwan, China 26.0500 26.6300 25.5000 25.1700 26.3600 26.2880 27.2870 27.5000 32.6680 32.2175

Thailand 25.6100 25.3000 25.0500 25.4900 25.4800 25.1050 25.1900 25.6400 48.1500 36.3350

Europe

Czech Republic− − − − − 28.1890 26.6660 27.2280 34.6735 30.0310

Greece 156.300 159.500 175.000 215.300 249.350 240.600 236.580 246.710 283.710 280.050

Hungary − − 75.620 83.970 100.700 113.150 136.630 161.650 204.225 215.295

Poland − − 10,957.00 15,767.00 21,444.00 24,370.00 // 2.4668

2.8605 3.5250 3.5100

Portugal 149.600 136.640 133.600 146.920 176.620 159.200 149.390 155.250 183.850 170.732

Russia − − 130.000 415.000 1,540.000 3,160.00 4,640.00 5,589.00 5,997.50 // 21.55

Slovakia − − − − − 31.2770 29.6280 31.8950 34.9000 36.8250

Turkey 2,293.00 2,898.00 5,025.00 8,540.00 14,570.00 38,700.0 60,900.0 109,095.0 207,125.0 315,400.0


Frontier Emerging Markets Currency Exchange Rates per US$, 1998: (Monthly % Change) 73

Mideast/Africa

Egypt 2.5600 2.8736 3.3370 3.3280 3.3580 3.3970 3.3900 3.3929 3.4025 3.4100

Israel 1.9630 2.0480 2.2830 2.7640 2.9860 3.0180 3.1361 3.2456 3.5374 4.1601

Jordan 0.6376 0.6409 0.6730 0.6742 0.6870 0.7040 0.7090 0.7098 0.7093 0.7120

Morocco 8.1218 8.0438 8.1499 8.8900 9.6900 9.1000 8.4690 8.7551 9.7415 9.2591

Nigeria 7.4500 8.7000 9.8000 21.5000 40.0000 22.0000 86.1000 78.4000 75.7200 89.0000

Saudi Arabia − − 3.7500 3.7500 3.7500 3.7500 3.7500 3.7500 3.7500 3.7510

South Africa 2.5360 2.5500 2.7430 4.8420 4.2900 4.0750 3.6455 4.6775 4.8665 5.8828

Zimbabwe 2.2448 2.6609 5.0355 5.4816 6.9351 8.3650 9.3188 10.8225 18.4500 37.2150

Emerging Markets Currency Exchange Rates per US$, 1989−1998:(Annual % Change)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina −98.82 −76.01 −43.24 0.10 −0.20 −0.01 0.02 0.01 0.00 0.07

Brazil −93.53 −92.98 −85.23 −91.10 −96.19 − −12.86 −6.46 −6.90 −7.63

Chile −15.15 −12.69 −10.14 −1.95 −11.30 7.48 −1.38 −4.17 −3.23 −7.34

Colombia −20.58 −19.10 −25.86 −13.10 −0.02 −2.37 −16.06 −1.53 −22.41 −16.21

Mexico −13.55 −8.97 −4.56 −0.87 0.23 −36.87 −36.08 −2.12 −2.36 −18.48

Peru − −99.02 −44.62 −40.37 −23.95 −1.42 −5.32 −11.30 −4.73 −13.62

Venezuela −14.48 −12.55 −18.19 −22.21 −25.18 −38.51 −49.97 −28.71 −5.56 −10.67

Asia

China − −5.82 −5.52 −5.52 −33.89 3.00 1.55 0.23 0.23 0.01

India −10.81 −7.22 −29.65 −10.04 −7.87 −0.76 −10.80 −1.84 −8.63 −7.73

Indonesia −4.43 −4.87 −4.79 −3.85 −1.88 −4.32 −3.87 −3.22 −57.01 −30.88

Korea 1.11 −5.19 −5.83 −3.77 −2.44 2.49 1.64 −8.25 −50.12 40.96

Malaysia 0.43 0.01 −0.82 4.03 −2.90 5.46 0.57 0.53 −35.12 2.43

Pakistan −12.94 −2.16 −11.71 −3.53 −14.94 −2.56 −10.07 −14.63 −8.92 −10.23

Philippines −4.92 −19.96 4.02 2.15 −5.19 10.66 −6.98 −0.27 −34.09 2.57

Sri Lanka − −0.60 −5.79 −7.14 −7.18 −0.21 −7.17 −5.69 −8.13 −9.76


Emerging Markets Currency Exchange Rates per US$, 1989−1998: (Annual % Change) 74

Taiwan, China 8.21 −2.18 4.43 1.31 −4.51 0.27 −3.66 −0.77 −15.82 1.40

Thailand −1.64 1.23 1.00 −1.73 0.04 1.49 −0.34 −1.76 −46.75 32.52

Europe

Czech Republic − − − − − − 5.71 −2.06 −21.47 15.46

Greece −5.50 −2.01 −8.86 −18.72 −13.66 3.64 1.70 −4.11 −13.04 1.31

Hungary − − − −9.94 −16.61 −11.00 −17.19 −15.48 −20.85 −5.14

Poland − − − −30.51 −26.47 −12.01 // −

−13.76 −18.85 0.43

Portugal −1.93 9.48 2.28 −9.07 −16.82 10.94 6.57 −3.77 −15.56 7.68

Russia − − − −68.67 −73.05 −51.27 −31.90 −16.98 −6.81 // −

Slovakia − − − − − − 5.57 −7.11 −8.61 −5.23

Turkey −21.28 −20.88 −42.33 −41.16 −41.39 −62.35 −36.45 −44.18 −47.33 −34.33

Mideast/Africa

Egypt − −10.91 −13.89 0.27 −0.89 −1.15 0.21 −0.09 −0.28 −0.22

Israel − −4.15 −10.29 −17.40 −7.43 −1.06 −3.77 −3.37 −8.25 −14.97

Jordan −25.50 −0.51 −4.77 −0.18 −1.86 −2.41 −0.71 −0.11 0.07 −0.38

Morocco − 0.97 −1.30 −8.33 −8.26 6.48 7.45 −3.27 −10.13 5.21

Nigeria −28.86 −14.37 −11.22 −54.42 −46.25 81.82 −74.45 9.82 3.54 −14.92

Saudi Arabia − − − − − − − − − −0.03

South Africa − −0.55 −7.04 −43.35 12.87 5.28 11.78 −22.06 −3.88 −17.28

Zimbabwe −13.45 −15.64 −47.16 −8.14 −20.96 −17.09 −10.24 −13.89 −41.34 −50.42

Frontier Emerging Markets Currency Exchange Rates per US$, 1989−1998:(End of Period Levels)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

FrontierMarkets

Bangladesh 32.2700 35.7900 38.5800 39.1236 39.9400 39.8000 40.3000 42.6110 44.9905 47.3088

Botswana − 1.8605 2.0921 2.2311 2.5648 2.7178 2.8177 3.6550 3.8008 4.4563

Bulgaria − − − − − − 71.5030 523.30 1,775.5 1,664.0


Frontier Emerging Markets Currency Exchange Rates per US$, 1989−1998: (End of Period Levels) 75

Cote d'Ivoire 289.400 256.450 259.000 271.490 294.775 523.000 490.550 519.980 578.850 560.500

Croatia − − − − − 5.6290 5.3160 5.5400 6.3030 6.2624

Ecuador − − − 1,857.5 1,977.9 2,269.0 2,919.0 3,630.0 4,456.0 6,856.2

Estonia − − − − − − − − 14.3747 13.3388

Ghana − − 390.630 520.000 815.000 1,051.00 1,455.00 1,740.23 2,243.64 2,345.23

Jamaica 6.4800 8.0380 21.4925 23.8500 28.5000 33.1030 39.9520 35.0328 36.0937 36.9500

Kenya 21.6010 24.0840 28.0741 36.2163 68.3060 44.4000 55.9500 55.0000 62.6000 62.0500

Latvia − − − − − − 0.5370 0.5560 0.5890 0.5710

Lithuania − − − − − − 4.0030 4.0030 4.0300 4.0005

Mauritius − 14.1724 15.4000 15.4000 18.8430 18.8430 18.3335 19.9110 22.1815 24.5180

Romania − − − − − 2.7166 2,578.0 4,035.0 8,070.0 10,951.0

Slovenia − − − − − 127.129 125.990 140.500 167.208 161.399

Trinidad &Tobago

4.2500 4.2500 4.2500 4.2872 5.8790 5.8431 5.9999 6.2450 6.2999 6.2932

Tunisia 0.9046 0.8355 0.8588 0.9550 1.0460 0.9860 0.9700 0.9971 1.1443 1.0964

Ukraine − − − − − − − − 1.8960 3.4270

Frontier Emerging Markets Currency Exchange Rates per US$, 1989−1998:(Annual % Change)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Frontier Markets

Bangladesh −2.36 −9.84 −7.23 −1.39 −2.04 0.35 −1.24 −5.42 −5.29 −4.90

Botswana − − −11.07 −6.23 −13.01 −5.63 −3.55 −22.91 −3.84 −14.71

Bulgaria − − − − − − − −86.34 −70.53 6.70

Cote d'Ivoire 4.65 12.85 −0.98 −4.60 −7.90 −43.64 6.62 −5.66 −10.17 3.27

Croatia − − − − − − 5.89 −4.04 −12.11 0.65

Ecuador − − − − −6.08 −12.83 −22.27 −19.59 −18.54 −35.01

Estonia − − − − − − − − − 7.77

Ghana − − − −24.88 −36.20 −22.45 −27.77 −16.39 −22.44 −4.33

Jamaica −16.81 −19.38 −62.60 −9.88 −16.32 −13.91 −17.14 14.04 −2.94 −2.32

Kenya −15.22 −10.31 −14.21 −22.48 −46.98 53.84 −20.64 1.73 −12.14 0.89

Latvia − − − − − − − −3.42 −5.60 3.15

Lithuania − − − − − − − 0.00 −0.67 0.74


Frontier Emerging Markets Currency Exchange Rates per US$, 1989−1998: (Annual % Change) 76

Mauritius − − −7.97 0.00 −18.27 0.00 2.78 −7.92 −10.24 −9.53

Romania − − − − − − − −36.11 −50.00 −26.31

Slovenia − − − − − − 0.90 −10.33 −15.97 3.60

Trinidad &Tobago

−0.14 0.00 0.00 −0.87 −27.08 0.61 −2.61 −3.92 −0.87 0.11

Tunisia −1.37 8.27 −2.71 −10.07 −8.70 6.09 1.65 −2.72 −12.86 4.37

Ukraine − − − − − − − − − −44.67

3—IFC Global Indexes

Market Weights in the IFCG Composite Index End−1998

MarketNumber ofStocks

MarketCapitalization(US$ millions)

Weight inIFCGComposite(%)

Latin America

Argentina 32 24,894 2.89

Brazil 100 65,871 7.65

Chile 51 31,837 3.70

Colombia 24 6,337 0.74

Mexico 70 67,174 7.80

Peru 35 6,151 0.71

Venezuela 19 4,689 0.54

Asia

China 214 52,452 6.09

India 142 49,797 5.78

Indonesia 58 10,682 1.24

Korea 180 61,203 7.10

Malaysia 147 44,849 5.21

Pakistan 53 2,400 0.28

Philippines 59 21,969 2.55


3— IFC Global Indexes 77

Sri Lanka 51 1,036 0.12

Taiwan, China 106 138,369 16.06

Thailand 64 16,735 1.94

Europe

Czech Republic 37 4,204 0.49

Greece 56 40,891 4.75

Hungary 15 10,933 1.27

Poland 35 8,134 0.94

Portugal 22 34,574 4.01

Russia 32 7,453 0.87

Slovakia 19 600 0.07

Turkey 58 16,947 1.97

Mideast/Africa

Egypt 66 5,848 0.68

Israel 49 16,373 1.90

Jordan 41 4,277 0.50

Morocco 18 9,674 1.12

Nigeria 28 1,942 0.23

Saudi Arabia 21 23,791 2.76

South Africa 67 68,672 7.97

Zimbabwe 24 653 0.08

Regions

Composite 1,993 861,413 100.00

Latin America 331 206,954 24.02

Asia 1,074 399,493 46.38

Europe 274 123,737 14.36

ME & Africa 314 131,230 15.23


3— IFC Global Indexes 78

Weights in the IFCG Composite Index, End−1998

Stock Distribution by Region inthe IFCG Composite Index, End−1998

Market Concentration in the IFCG Indexes End−1998:(Percent)

Market

Index stocks'share oftotalmarket cap

Index stocks'share oftotalvalue traded

10 largestindex stocks'share of totalmarket cap

10 most activeindex stocks'share of totalvalue traded

Latin America

Argentina 57.0 98.4 49.0 89.3

Brazil 60.7 65.2 24.8 54.1

Chile 67.9 81.5 43.1 60.4

Colombia 55.3 43.7 41.3 34.0

Mexico 73.6 80.7 41.4 50.8

Peru 58.5 81.3 48.2 62.0

Venezuela 65.2 77.3 61.2 71.3

Asia

China 45.0 26.0 17.5 5.5

India 66.4 74.1 33.2 51.7


Market Concentration in the IFCG Indexes End−1998: (Percent) 79

Indonesia 73.4 68.6 61.2 50.5

Korea 74.9 68.2 37.9 24.1

Malaysia 60.5 69.2 31.5 31.0

Pakistan 68.4 98.4 55.4 95.6

Philippines 75.9 83.0 55.4 54.9

Sri Lanka 67.0 70.2 38.9 49.5

Taiwan, China 61.4 44.4 27.3 19.9

Thailand 73.7 69.1 45.8 42.3

Europe

Czech Republic 74.2 87.4 65.1 77.0

Greece 66.5 65.2 53.1 49.0

Hungary 86.5 86.5 85.2 85.1

Poland 79.7 41.1 64.5 25.8

Portugal 77.6 68.8 70.2 60.5

Russia 51.8 88.2 48.1 86.4

Slovakia 75.2 45.0 70.5 42.0

Turkey 76.5 68.1 56.1 41.7

Mideast/Africa

Egypt 42.0 51.2 21.0 28.7

Israel 66.9 81.4 38.1 50.4

Jordan 80.0 66.0 70.6 51.3

Morocco 73.1 74.7 63.3 70.4

Nigeria 68.5 81.7 43.3 68.7

Saudi Arabia 72.7 88.4 64.5 77.3

South Africa 53.1 56.0 26.8 26.7

Zimbabwe 54.2 78.8 48.2 69.6


Market Concentration in the IFCG Indexes End−1998: (Percent) 80

IFCG Index Share of Total Market Capitalization in 1998 (percent)

Comparative Valuations of the IFCG Indexes End−1998

Price−earnings ratio Price−book value ratio Dividend yield

MarketEnd1998

Relativeto MSCIWorld

End1997

End1998


End1997

End1998


End1997

Latin America

Argentina 13.41 0.46 16.34 1.25 0.36 1.81 4.02 2.51 2.09

Brazil 6.99 0.24 12.37 0.61 0.17 1.00 7.84 4.90 3.92

Chile 15.14 0.52 14.67 1.11 0.32 1.64 4.11 2.57 3.92

Colombia 11.84 0.41 15.51 0.77 0.22 1.12 5.14 3.21 2.89

Mexico 23.93 0.83 19.16 1.41 0.40 2.29 2.74 1.71 1.53

Peru 21.09 0.73 13.97 1.57 0.45 1.98 3.55 2.22 2.30

Venezuela 5.56 0.19 12.83 0.50 0.14 1.18 4.49 2.81 1.16

Asia

China 23.78 0.82 34.48 2.06 0.59 3.89 0.90 0.56 1.31

India 13.47 0.46 15.16 1.85 0.53 2.26 1.86 1.16 1.83


Comparative Valuations of the IFCG Indexes End−1998 81

Indonesia −106.21 − 10.46 1.55 0.44 1.39 0.83 0.52 2.90

Korea −47.12 − 17.86 0.92 0.26 0.51 0.94 0.59 3.02

Malaysia 21.06 0.73 9.53 1.29 0.37 1.39 2.53 1.58 3.99

Pakistan 7.59 0.26 14.76 0.92 0.26 2.25 13.02 8.14 3.20

Philippines 15.03 0.52 10.86 1.25 0.36 1.35 0.79 0.49 1.44

Sri Lanka 7.69 0.27 11.68 1.12 0.32 1.35 4.54 2.84 2.60

Taiwan, China 21.70 0.75 28.89 2.60 0.74 3.07 0.74 0.46 0.59

Thailand −3.65 −0.13 −32.79 1.19 0.34 0.78 0.62 0.39 7.67

Europe

Czech Republic −11.27 − 37.11 0.67 0.19 0.84 3.18 1.99 2.82

Greece 33.65 1.16 17.63 4.85 1.39 3.13 1.57 0.98 2.91

Hungary 16.96 0.58 27.35 3.21 0.92 4.20 1.09 0.68 0.46

Poland 10.71 0.37 11.38 1.54 0.44 1.69 1.52 0.95 1.50

Portugal 22.80 0.79 22.95 3.43 0.98 3.12 1.75 1.09 1.74

Russia 3.70 0.13 8.08 0.30 0.09 0.47 1.08 0.68 0.16

Slovakia −174.16 − 15.98 0.27 0.08 0.54 3.32 2.08 2.89

Turkey 7.80 0.27 20.13 2.74 0.79 6.84 4.34 2.71 1.64

Mideast/Africa

Egypt 8.72 0.30 11.53 2.60 0.74 3.95 7.39 4.62 3.44

Israel 13.35 0.46 14.29 1.20 0.34 1.41 1.90 1.19 1.70

Jordan 15.93 0.55 14.36 1.75 0.50 1.77 1.79 1.12 2.06

Morocco 21.24 0.73 18.31 3.60 1.03 3.54 1.82 1.14 1.47

Nigeria 10.14 0.35 8.09 1.67 0.48 2.30 5.07 3.17 5.69

Saudi Arabia 12.16 0.42 − 1.65 0.47 − − − −

South Africa 10.09 0.35 10.82 1.53 0.44 1.59 3.24 2.03 2.50

Zimbabwe 5.83 0.20 10.28 1.26 0.36 1.68 2.79 1.74 2.94

Regions

Composite 18.01 0.62 16.00 1.38 0.40 1.54 2.55 1.59 2.47

Latin America 11.58 0.40 15.08 0.91 0.26 1.47 5.08 3.18 2.84

Asia 38.34 1.32 20.33 1.61 0.46 1.93 1.17 0.73 2.54



Europe 15.57 0.54 13.18 1.86 0.53 1.07 2.20 1.38 1.45

ME & Africa 11.27 0.39 11.51 1.60 0.46 1.70 3.24 2.03 2.53

DevelopedMarkets

Japan 185.20 6.39 41.90 1.60 0.46 1.77 1.00 0.63 0.90

U.K. 20.40 0.70 16.80 3.83 1.10 3.43 2.50 1.56 2.80

U.S. 30.20 1.04 22.90 5.14 1.47 4.20 1.30 0.81 1.60

MSCI World 29.00 1.00 23.20 3.49 1.00 3.08 1.60 1.00 1.80

IFCG P/E Ratios, End−1998



IFCG Dividend Yields, End−1998

IFCG Price Indexes 1998 Performance Summary:(Ranked by 1998 % Changes in US$)

Rank Market

% change inIFCG PriceIndex

Emerging Markets 1 Korea 118.8

2 Greece 91.2

3 Portugal 38.2

4 Thailand 31.9

5 Morocco 27.4

6 Philippines 9.8

7 Jordan 8.3

8 Malaysia −1.6

9 Czech Republic −10.0

10 Hungary −10.8

11 Poland −12.2

12 India −15.3

13 Israel −16.0

14 Taiwan, China −19.9

15 Sri Lanka −20.9

16 China −23.3

17 Saudi Arabia −26.8

18 Argentina −28.4

19 Nigeria −28.4

20 Indonesia −29.3

21 Egypt −29.5

22 Chile −30.0

23 South Africa −30.5

24 Mexico −38.8

25 Peru −39.7

26 Brazil −42.6


IFCG Price Indexes 1998 Performance Summary: (Ranked by 1998 % Changes in US$) 84

27 Colombia −43.6

28 Venezuela −51.8

29 Turkey −53.1

30 Slovakia −53.9

31 Zimbabwe −59.2

32 Pakistan −59.5

33 Russia −87.5

Regions 1 Asia −6.7

2 Composite −23.0

3 ME & Africa −24.5

4 Europe −28.6

5 Latin America −38.3

DevelopedMarkets 1 U.S., S&P 500 26.7

2 U.K., FT−EuroPac 16.9

3 U.K., FT−SE 100 15.8

4 Japan, Nikkei 4.6


IFCG Price Indexes 1998 Performance Summary: (Ranked by 1998 % Changes in US$) 85

Percent Change in IFCG Price Indexes, 1998

IFCG Price Indexes 1998 High, Low, Close:(US$; Year−end and Daily Closing Levels)

Market End−1997 High Date Low Date End−1998

Latin America

Argentina 1,817.1 1,849.1 Mar 26 880.7 Sep 10 1,300.6

Brazil 396.6 438.7 Apr 15 174.6 Sep 10 227.6

Chile 2,717.9 2,731.0 Jan 2 1,455.9 Sep 14 1,901.5

Colombia 1,802.3 1,781.8 Jan 2 716.7 Oct 15 1,016.9

Mexico 1,985.1 1,981.0 Jan 2 861.1 Sep 10 1,215.1

Peru 257.3 258.4 Jan 2 146.6 Sep 22 155.1


IFCG Price Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Levels) 86

Venezuela 577.9 576.0 Jan 2 158.9 Sep 10 278.4

Asia

China 129.4 138.6 Jun 3 97.7 Aug 17 99.3

India 284.7 341.4 Apr 21 218.6 Oct 20 241.1

Indonesia 32.1 30.3 Jan 2 8.7 Sep 21 22.7

Korea 102.3 224.1 Dec 30 91.2 Jun 16 223.8

Malaysia 100.2 142.5 Feb 10 45.4 Sep 1 98.6

Pakistan 243.0 243.0 Jan 2 77.7 Oct 21 98.5

Philippines 1,423.4 1,900.3 Mar 25 780.9 Sep 11 1,563.3

Sri Lanka 89.3 101.3 Apr 24 51.7 Sep 4 70.6

Taiwan, China 876.7 1,020.1 Mar 2 572.6 Sep 3 701.8

Thailand 123.9 228.2 Mar 23 76.4 Sep 3 163.5

Europe

Czech Republic 52.7 57.6 Jul 21 37.8 Oct 6 47.4

Greece 463.2 885.6 Dec 31 428.5 Jan 29 885.6

Hungary 217.2 250.0 Apr 3 125.5 Sep 21 193.8

Poland 594.2 815.4 Mar 13 420.7 Oct 9 521.4

Portugal 1,143.7 1,874.9 Apr 22 1,167.2 Jan 2 1,580.3

Russia 621.2 634.4 Jan 5 38.9 Oct 2 77.4

Slovakia 102.7 103.0 Jan 2 42.6 Nov 24 47.3

Turkey 693.8 737.7 Jan 5 260.1 Oct 8 325.3

Mideast/Africa

Egypt 163.8 164.2 Jan 2 111.5 Dec 9 115.4

Israel 121.9 135.7 Jun 8 85.6 Oct 8 102.4

Jordan 164.3 190.9 Aug 17 160.7 Feb 16 178.0

Morocco 190.7 266.5 Oct 8 187.5 Jan 20 243.0

Nigeria 81.8 80.8 Jan 2 57.6 Sep 9 58.5

Saudi Arabia 100.0 102.0 Jan 7 67.8 Dec 8 73.2

South Africa 182.4 241.5 Apr 20 103.5 Sep 11 126.8

Zimbabwe 430.2 557.5 Mar 31 159.0 Sep 24 175.4


IFCG Price Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Levels) 87

Regions

Composite 328.1 355.5 Apr 15 206.3 Sep 11 252.8

Latin America 811.6 817.7 Jan 2 371.4 Sep 10 501.7

Asia 226.0 268.7 Mar 2 153.0 Sep 1 210.7

Europe 214.2 240.4 Apr 22 109.7 Oct 5 152.7

Mideast/Africa 75.5 93.2 Apr 20 51.9 Sep 11 57.0

IFCG Price Indexes High and Low vs. 1997 Close

IFCG Price Indexes Regional vs. Developed Market Performance, 1998:(End−of−period Values in US$; End 1984=100)


IFCG Price Indexes Regional vs. Developed Market Performance, 1998: (End−of−period Values in US$; End 1984=100)88

Index Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Indexlevels IFCG Composite 309.0 340.7 350.9 346.9 304.6 272.5 279.7 208.2 218.2 240.1 257.8 252.8

IFCG LatinAmerica

717.0 749.5 797.6 783.0 683.5 644.7 666.3 442.7 468.9 500.2 547.0 501.7

IFCG Asia 223.6 263.4 260.2 241.9 212.7 185.4 188.1 156.5 169.2 188.8 207.9 210.7

IFCG EMEA* 114.1 120.8 127.9 138.2 121.8 107.0 110.6 79.3 78.7 87.2 89.0 87.8

U.S., S&P 500 586.2 627.4 658.8 664.8 652.2 678.0 670.1 572.4 608.1 656.9 695.8 735.0

U.K., FT−SE 100626.3 666.4 697.1 695.6 671.8 682.9 670.2 616.8 604.0 639.1 665.4 686.9

Japan, Nikkei 292.7 297.3 276.6 264.2 252.4 254.5 253.2 223.0 219.8 259.8 270.2 273.8

FT, EuroPac 480.8 510.7 524.3 525.3 523.4 523.4 525.7 460.2 447.0 493.6 519.9 537.5

% change IFCG Composite −5.8 10.2 3.0 −1.1 −12.2 −10.5 2.6 −25.6 4.8 10.0 7.4 −1.9

IFCG LatinAmerica

−11.7 4.5 6.4 −1.8 −12.7 −5.7 3.4 −33.6 5.9 6.7 9.3 −8.3

IFCG Asia −1.1 17.8 −1.2 −7.0 −12.1 −12.8 1.5 −16.8 8.1 11.6 10.1 1.4

IFC GEMEA −5.5 5.8 5.9 8.1 −11.9 −12.2 3.4 −28.3 −0.8 10.8 2.1 −1.3

U.S., S&P 500 1.0 7.0 5.0 0.9 −1.9 3.9 −1.2 −14.6 6.2 8.0 5.9 5.6

U.K., FT−SE 1005.6 6.4 4.6 −0.2 −3.4 1.7 −1.9 −8.0 −2.1 5.8 4.1 3.2

Japan, Nikkei 11.8 1.6 −7.0 −4.5 −4.5 0.9 −0.5 −11.9 −1.4 18.2 4.0 1.3

FT, EuroPac 4.6 6.2 2.7 0.2 −0.4 0.0 0.4 −12.5 −2.9 10.4 5.3 3.4

Note: The base date for the IFCG EMEA Index is December 1995=100.


IFCG Price Indexes Regional vs. Developed Market Performance, 1998: (End−of−period Values in US$; End 1984=100)89

IFCG Regional Price Indexes vs. U.S. S&P 500, 1998 (daily; end−1997 = 100)

IFCG Price Indexes, Regional vs. Developed Market Performance, 1989−1998:(End−of−period Values in US$; End 1984=100*)

Index 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Indexlevels

IFCGComposite 339.9 234.8 271.5 267.8 439.6 430.0 370.4 391.8 328.1 252.8

IFCG LatinAmerica

221.8 203.7 439.2 457.0 695.0 682.3 559.8 649.2 811.6 501.7

IFCG Asia 434.0 275.3 274.1 273.8 459.5 454.9 387.0 403.2 226.0 210.7

IFCG EMEA* − − − − − − 100.0 97.4 120.8 87.8

U.S., S&P 500 211.3 197.5 249.4 260.5 280.2 274.6 368.3 442.9 580.3 735.0

U.K., FT−SE100

274.4 290.3 317.5 302.5 354.9 336.5 401.9 494.5 592.9 686.9

Japan, Nikkei 604.2 391.9 411.0 302.6 348.2 441.2 429.8 372.3 261.9 273.8

FT, EuroPac 435.3 324.5 357.2 303.5 391.1 418.9 453.8 470.3 459.7 537.5

% changeIFCGComposite 51.7 −30.9 15.6 −1.4 64.1 −2.2 −13.9 5.8 −16.3 −22.9

IFCG LatinAmerica

44.0 −8.1 115.6 4.0 52.1 −1.8 −18.0 16.0 25.0 −38.2

IFCG Asia 53.0 −36.6 −0.4 −0.1 67.8 −1.0 −14.9 4.2 −43.9 −6.8

IFCG EMEA − − − − − − − −2.6 24.0 −27.3

U.S., S&P 500 27.3 −6.6 26.3 4.5 7.6 −2.0 34.1 20.3 31.0 26.7

U.K., FT−SE100

21.1 5.8 9.4 −4.7 17.3 −5.2 19.4 23.0 19.9 15.8

Japan, Nikkei 12.2 −35.1 4.9 −26.4 15.1 26.7 −2.6 −13.4 −29.7 4.6

FT, EuroPac 9.5 −25.5 10.1 −15.0 28.9 7.1 8.3 3.6 −2.3 16.9

Note: The base date for the IFCG EMEA Index is December 1995=100.


IFCG Price Indexes, Regional vs. Developed Market Performance, 1989−1998: (End−of−period Values in US$; End 1984=100*)90

IFCG Regional Price Indexes vs. U.S. S&P 500, 1989−1998(monthly; end−1988=100)

IFCG Price Indexes 1998:(End−of−period Values in US$)

Market Base date(=100.0)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Latin America

Argentina Dec−84 1,647.9 1,779.6 1,842.7 1,804.3 1,582.6 1,486.3 1,587.9 1,068.5 1,209.9 1,378.6 1,444.3 1,300.6

Brazil Dec−84 368.1 394.1 429.2 415.3 349.8 341.7 368.6 229.4 228.3 235.6 281.3 227.6

Chile Dec−84 2,318.0 2,533.2 2,694.3 2,549.2 2,320.7 2,134.2 2,238.7 1,641.1 1,691.4 1,823.0 2,126.2 1,901.5

Colombia Dec−84 1,614.5 1,410.8 1,378.1 1,412.7 1,299.0 1,244.2 1,135.4 903.8 799.0 757.8 951.3 1,016.9

Mexico Dec−84 1,682.7 1,720.2 1,818.0 1,854.5 1,606.7 1,499.2 1,475.4 979.5 1,105.3 1,211.1 1,163.7 1,215.1

Peru Dec−92 231.0 221.1 242.5 253.5 244.2 226.4 228.0 162.8 156.5 152.6 177.9 155.1

Venezuela Dec−84 480.4 464.6 475.5 365.9 376.0 289.8 285.5 170.3 228.2 212.9 228.9 278.4

Asia

China Dec−92 128.0 128.1 129.6 135.1 138.3 124.2 120.7 104.3 110.0 106.1 108.4 99.3

India Dec−84 256.8 282.3 305.2 317.1 285.6 244.9 243.2 226.3 238.8 222.3 220.6 241.1

Indonesia Dec−89 20.9 24.4 29.0 25.0 15.3 12.7 16.0 13.6 10.3 15.9 23.3 22.7

Korea Dec−84 172.3 159.7 161.2 148.8 114.3 101.4 130.3 105.0 100.3 133.2 163.2 223.8

Malaysia Dec−84 90.0 138.2 132.8 112.0 92.4 72.1 65.2 47.6 65.9 70.4 90.1 98.6

Pakistan Dec−84 225.9 227.4 209.7 208.1 134.8 99.7 95.8 97.9 110.9 81.5 108.7 98.5

Philippines Dec−84 1,367.2 1,727.0 1,809.0 1,648.6 1,575.4 1,282.6 1,161.7 844.6 891.0 1,309.0 1,531.0 1,563.3

Sri Lanka Dec−92 83.9 89.7 91.9 100.7 82.6 68.3 70.3 56.0 57.8 57.4 68.7 70.6

Taiwan, China Dec−84 829.2 1,009.9 955.3 859.5 776.1 711.8 723.1 601.1 647.2 730.3 772.5 701.8


IFCG Price Indexes 1998: (End−of−period Values in US$) 91

Thailand Dec−84 161.6 214.4 202.3 183.3 131.6 99.4 100.8 77.2 100.4 147.5 167.6 163.5

Europe

Czech RepublicDec−93 47.9 52.4 54.5 55.6 51.5 51.8 57.6 43.4 43.2 47.8 46.3 47.4

Greece Dec−84 432.8 445.4 573.5 744.3 768.8 698.7 845.0 640.9 664.5 696.2 803.5 885.6

Hungary Dec−92 195.9 216.4 239.0 233.9 202.8 214.0 232.9 143.9 141.3 166.5 181.0 193.8

Poland Dec−92 601.6 756.9 725.1 785.3 681.4 691.0 740.4 461.9 490.4 521.6 485.2 521.4

Portugal Jan−86 1,278.9 1,449.2 1,616.2 1,764.3 1,707.1 1,557.1 1,690.9 1,452.2 1,268.8 1,524.7 1,542.8 1,580.3

Russia Dec−95 429.1 477.9 510.3 492.0 295.9 229.1 225.6 84.6 46.5 71.3 101.4 77.4

Slovakia Dec−95 90.4 87.5 79.8 76.5 64.2 59.3 62.5 62.2 56.0 48.3 43.5 47.3

Turkey Dec−86 658.1 582.2 541.9 676.3 567.7 596.9 599.7 355.9 313.0 299.8 337.0 325.3

Mideast/Africa

Egypt Dec−95 153.6 152.7 157.5 154.3 140.4 133.8 130.7 115.6 123.5 116.8 113.8 115.4

Israel Dec−96 110.4 114.9 124.1 122.1 131.0 125.8 125.5 111.1 106.4 94.8 102.1 102.4

Jordan Dec−84 163.5 165.0 162.9 168.2 182.3 174.6 186.0 186.3 179.3 168.5 173.6 178.0

Morocco Dec−95 189.7 199.6 207.1 227.9 239.1 239.2 240.2 260.3 262.7 255.3 244.4 243.0

Nigeria Dec−84 74.7 71.6 69.4 66.6 60.8 63.1 62.9 59.8 60.8 60.7 61.3 58.5

Saudi Arabia Dec−97 100.3 94.0 88.9 96.1 95.2 92.2 92.4 87.5 85.9 77.2 75.8 73.2

South Africa Dec−92 192.8 206.6 216.8 236.2 208.4 159.3 156.8 104.9 119.6 145.3 137.3 126.8

Zimbabwe Dec−84 491.1 509.0 557.5 458.8 404.4 415.6 360.2 213.8 179.4 165.4 161.8 175.4

IFCG Price Indexes 1998:(Monthly % Change in US$)


Latin America

Argentina −9.3 8.0 3.5 −2.1 −12.3 −6.1 6.8 −32.7 13.2 13.9 4.8 −9.9

Brazil −7.2 7.1 8.9 −3.2 −15.8 −2.3 7.9 −37.8 −0.5 3.2 19.4 −19.1

Chile −14.7 9.3 6.4 −5.4 −9.0 −8.0 4.9 −26.7 3.1 7.8 16.6 −10.6

Colombia −10.4 −12.6 −2.3 2.5 −8.0 −4.2 −8.7 −20.4 −11.6 −5.2 25.5 6.9

Mexico −15.2 2.2 5.7 2.0 −13.4 −6.7 −1.6 −33.6 12.8 9.6 −3.9 4.4

Peru −10.2 −4.3 9.7 4.5 −3.7 −7.3 0.7 −28.6 −3.9 −2.5 16.6 −12.8


IFCG Price Indexes 1998: (Monthly % Change in US$) 92

Venezuela −16.9 −3.3 2.3 −23.0 2.8 −22.9 −1.5 −40.3 34.0 −6.7 7.5 21.6

Asia

China −1.1 0.1 1.1 4.3 2.4 −10.2 −2.9 −13.6 5.5 −3.5 2.1 −8.4

India −9.8 9.9 8.1 3.9 −9.9 −14.2 −0.7 −7.0 5.5 −6.9 −0.8 9.3

Indonesia −35.0 16.8 19.2 −13.8 −38.8 −17.0 26.2 −15.5 −24.1 54.8 46.1 −2.5

Korea 68.5 −7.3 0.9 −7.7 −23.2 −11.2 28.4 −19.4 −4.4 32.8 22.5 37.1

Malaysia −10.2 53.6 −3.9 −15.7 −17.5 −21.9 −9.6 −26.9 38.4 6.8 27.9 9.4

Pakistan −7.0 0.7 −7.8 −0.8 −35.2 −26.1 −3.9 2.1 13.3 −26.5 33.4 −9.4

Philippines −4.0 26.3 4.7 −8.9 −4.4 −18.6 −9.4 −27.3 5.5 46.9 17.0 2.1

Sri Lanka −6.0 7.0 2.4 9.6 −17.9 −17.4 3.0 −20.4 3.2 −0.6 19.6 2.9

Taiwan, China −5.4 21.8 −5.4 −10.0 −9.7 −8.3 1.6 −16.9 7.7 12.9 5.8 −9.1

Thailand 30.4 32.6 −5.6 −9.4 −28.2 −24.4 1.4 −23.4 30.1 46.9 13.7 −2.5

Europe

Czech Republic −9.2 9.4 4.0 2.1 −7.4 0.5 11.2 −24.7 −0.5 10.7 −3.1 2.5

Greece −6.6 2.9 28.8 29.8 3.3 −9.1 20.9 −24.2 3.7 4.8 15.4 10.2

Hungary −9.8 10.5 10.5 −2.1 −13.3 5.5 8.8 −38.2 −1.8 17.9 8.7 7.1

Poland 1.2 25.8 −4.2 8.3 −13.2 1.4 7.1 −37.6 6.2 6.4 −7.0 7.5

Portugal 11.8 13.3 11.5 9.2 −3.2 −8.8 8.6 −14.1 −12.6 20.2 1.2 2.4

Russia −30.9 11.4 6.8 −3.6 −39.9 −22.6 −1.5 −62.5 −45.0 53.2 42.3 −23.7

Slovakia −11.9 −3.3 −8.7 −4.2 −16.1 −7.6 5.3 −0.4 −10.0 −13.7 −10.0 8.8

Turkey −5.1 −11.5 −6.9 24.8 −16.1 5.1 0.5 −40.7 −12.1 −4.2 12.4 −3.5

Mideast/Africa

Egypt −6.2 −0.5 3.1 −2.0 −9.0 −4.7 −2.3 −11.6 6.8 −5.4 −2.6 1.4

Israel −9.5 4.2 7.9 −1.5 7.2 −4.0 −0.3 −11.5 −4.2 −10.9 7.8 0.3

Jordan −0.5 0.9 −1.3 3.3 8.4 −4.2 6.5 0.2 −3.8 −6.0 3.0 2.6

Morocco −0.5 5.2 3.8 10.0 4.9 0.1 0.4 8.3 0.9 −2.8 −4.3 −0.6

Nigeria −8.7 −4.1 −3.0 −4.1 −8.7 3.8 −0.3 −5.0 1.6 −0.1 1.0 −4.5

Saudi Arabia 0.3 −6.3 −5.4 8.1 −1.0 −3.1 0.2 −5.2 −1.9 −10.1 −1.9 −3.4

South Africa 5.7 7.1 4.9 9.0 −11.8 −23.5 −1.6 −33.1 14.0 21.5 −5.5 −7.7

Zimbabwe 14.2 3.7 9.5 −17.7 −11.8 2.8 −13.3 −40.6 −16.1 −7.8 −2.1 8.4


IFCG Price Indexes 1998: (Monthly % Change in US$) 93

IFCG Price Indexes 1989−1998:(End−of−period Values in US$)


1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina Dec−84 426.7 267.7 1,322.0 958.0 1,602.4 1,200.0 1,303.8 1,549.5 1,817.1 1,300.6

Brazil Dec−84 126.3 41.3 102.7 101.1 193.4 324.2 252.4 329.1 396.6 227.6

Chile Dec−84 638.6 838.8 1,593.5 1,788.8 2,315.8 3,269.7 3,175.2 2,629.4 2,717.9 1,901.5

Colombia Dec−84 237.3 300.0 821.3 1,117.5 1,471.6 1,866.0 1,390.0 1,452.2 1,802.3 1,016.9

Mexico Dec−84 609.1 760.8 1,540.2 1,848.0 2,715.1 1,585.6 1,157.3 1,344.5 1,985.1 1,215.1

Peru Dec−92 − − − 100.0 134.9 205.2 224.3 225.8 257.3 155.1

Venezuela Dec−84 80.7 551.8 792.9 454.2 406.5 296.0 202.3 469.1 577.9 278.4

Asia

China Dec−92 − − − 100.0 92.5 60.7 51.8 98.2 129.4 99.3

India Dec−84 208.7 243.4 283.7 346.4 405.6 431.9 279.9 270.2 284.7 241.1

Indonesia Dec−89 100.0 98.9 57.1 57.7 120.5 95.7 105.2 124.1 32.1 22.7

Korea Dec−84 650.8 483.4 406.5 420.9 507.7 590.5 549.3 334.1 102.3 223.8

Malaysia Dec−84 158.5 137.7 150.7 187.8 374.7 289.2 294.4 361.9 100.2 98.6

Pakistan Dec−84 126.1 132.2 345.3 274.7 418.6 377.8 254.6 199.1 243.0 98.5

Philippines Dec−84 1,935.8 870.2 1,372.4 1,608.5 3,753.2 3,713.9 3,171.9 3,778.3 1,423.4 1,563.3

Sri Lanka Dec−92 − − − 100.0 161.9 158.8 95.9 82.5 89.3 70.6

Taiwan, China Dec−84 1,287.7 632.1 623.9 451.2 843.3 1,024.4 702.2 955.8 876.7 701.8

Thailand Dec−84 497.4 381.1 445.7 605.6 1,192.9 1,036.2 998.6 618.6 123.9 163.5

Europe

Czech RepublicDec−93 − − − − 100.0 80.4 63.1 75.7 52.7 47.4

Greece Dec−84 287.9 559.9 437.6 292.1 339.2 332.3 350.7 347.1 463.2 885.6

Hungary Dec−92 − − − 100.0 119.1 98.3 69.4 135.0 217.2 193.8

Poland Dec−92 − − − 100.0 817.9 469.4 426.2 729.5 594.2 521.4

Portugal Jan−86 820.4 565.2 556.7 431.2 570.9 665.0 637.6 796.5 1,143.7 1,580.3

Russia Dec−95 − − − − − − 100.0 255.9 621.2 77.4


IFCG Price Indexes 1989−1998: (End−of−period Values in US$) 94

Slovakia Dec−95 − − − − − − 100.0 115.7 102.7 47.3

Turkey Dec−86 642.2 601.3 336.2 152.1 477.1 268.1 232.2 330.6 693.8 325.3

Mideast/Africa

Egypt Dec−95 − − − − − − 100.0 138.8 163.8 115.4

Israel Dec−96 − − − − − − − 100.0 121.9 102.4

Jordan Dec−84 102.3 100.7 106.7 129.1 156.0 137.8 152.4 147.0 164.3 178.0

Morocco Dec−95 − − − − − − 100.0 138.4 190.7 243.0

Nigeria Dec−84 34.2 42.8 54.5 33.4 27.3 73.3 53.6 83.4 81.8 58.5

Saudi Arabia Dec−97 − − − − − − − − 100.0 73.2

South Africa Dec−92 − − − 100.0 177.5 228.1 262.0 211.8 182.4 126.8

Zimbabwe Dec−84 612.4 1,130.5 511.6 196.7 437.6 536.1 593.0 946.7 430.2 175.4

IFCG Price Indexes 1989−1998:(Annual % Change in US$)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina 137.9 −37.3 393.9 −27.5 67.3 −25.1 8.6 18.8 17.3 −28.4

Brazil 34.4 −67.3 148.6 −1.5 91.3 67.6 −22.1 30.4 20.5 −42.6

Chile 35.4 31.4 90.0 12.3 29.5 41.2 −2.9 −17.2 3.4 −30.0

Colombia 3.8 26.4 173.8 36.1 31.7 26.8 −25.5 4.5 24.1 −43.6

Mexico 67.8 24.9 102.4 20.0 46.9 −41.6 −27.0 16.2 47.6 −38.8

Peru − − − − 34.9 52.1 9.3 0.7 13.9 −39.7

Venezuela −34.5 583.9 43.7 −42.7 −10.5 −27.2 −31.7 131.9 23.2 −51.8

Asia

China − − − − −7.5 −34.5 −14.5 89.4 31.8 −23.3

India 2.1 16.6 16.6 22.1 17.1 6.5 −35.2 −3.5 5.4 −15.3

Indonesia − −1.1 −42.3 1.0 109.1 −20.6 9.9 18.0 −74.2 −29.3

Korea 5.6 −25.7 −15.9 3.5 20.6 16.3 −7.0 −39.2 −69.4 118.8

Malaysia 40.5 −13.1 9.5 24.6 99.5 −22.8 1.8 22.9 −72.3 −1.6

Pakistan −1.6 4.9 161.1 −20.5 52.4 −9.8 −32.6 −21.8 22.0 −59.5


IFCG Price Indexes 1989−1998: (Annual % Change in US$) 95

Philippines 57.5 −55.0 57.7 17.2 133.3 −1.0 −14.6 19.1 −62.3 9.8

Sri Lanka − − − − 61.9 −1.9 −39.6 −14.0 8.2 −20.9

Taiwan, China 98.4 −50.9 −1.3 −27.7 86.9 21.5 −31.4 36.1 −8.3 −19.9

Thailand 93.6 −23.4 16.9 35.9 97.0 −13.1 −3.6 −38.1 −80.0 31.9

Europe

Czech Republic − − − − − −19.6 −21.5 20.0 −30.4 −10.0

Greece 67.4 94.5 −21.9 −33.3 16.1 −2.0 5.5 −1.0 33.5 91.2

Hungary − − − − 19.1 −17.5 −29.4 94.6 60.9 −10.8

Poland − − − − 717.9 −42.6 −9.2 71.1 −18.5 −12.2

Portugal 37.3 −31.1 −1.5 −22.6 32.4 16.5 −4.1 24.9 43.6 38.2

Russia − − − − − − − 155.9 142.7 −87.5

Slovakia − − − − − − − 15.7 −11.2 −53.9

Turkey 420.2 −6.4 −44.1 −54.8 213.7 −43.8 −13.4 42.4 109.9 −53.1

Mideast/Africa

Egypt − − − − − − − 38.8 18.0 −29.5

Israel − − − − − − − − 21.9 −16.0

Jordan −4.1 −1.6 5.9 21.1 20.8 −11.7 10.6 −3.6 11.8 8.3

Morocco − − − − − − − 38.4 37.8 27.4

Nigeria 10.2 25.1 27.4 −38.8 −18.2 168.8 −26.9 55.6 −1.9 −28.4

Saudi Arabia − − − − − − − − − −26.8

South Africa − − − − 77.5 28.5 14.8 −19.2 −13.9 −30.5

Zimbabwe 25.3 84.6 −54.7 −61.5 122.5 22.5 10.6 59.6 −54.6 −59.2

Statistics of the IFCG Price Indexes:(US$; December 1993−December 1998)

Market

Numberofmonths

Mean of% change

Standarddeviation

Annualizedmean

Annualizedstandarddeviation

CorrelationwithS&P 500

Latin America

Argentina 60 0.15 9.73 1.80 33.71 0.64

Brazil 60 1.03 12.26 12.36 42.47 0.44


Statistics of the IFCG Price Indexes: (US$; December 1993−December 1998) 96

Chile 60 0.00 8.13 0.00 28.16 0.49

Colombia 60 −0.30 8.10 −3.60 28.06 0.12

Mexico 60 −0.61 11.45 −7.32 39.66 0.52

Peru 60 0.65 9.27 7.80 32.11 0.22

Venezuela 60 0.64 15.36 7.68 53.21 0.30

Asia

China 60 1.12 16.39 13.44 56.78 0.08

India 60 −0.55 8.03 −6.60 27.82 0.22

Indonesia 60 −1.33 16.73 −15.96 57.95 0.44

Korea 60 −0.28 15.52 −3.36 53.76 0.23

Malaysia 60 −1.31 13.80 −15.72 47.80 0.48

Pakistan 60 −1.75 11.17 −21.00 38.69 0.19

Philippines 60 −0.84 11.36 −10.08 39.35 0.51

Sri Lanka 60 −0.98 8.89 −11.76 30.80 0.34

Taiwan, China 60 0.08 8.94 0.96 30.97 0.40

Thailand 60 −2.19 14.75 −26.28 51.10 0.52

Europe

CzechRepublic*

59 −1.58 7.61 −18.96 26.36 0.26

Greece 60 2.02 9.27 24.24 32.11 0.39

Hungary 60 1.62 12.92 19.44 44.76 0.52

Poland 60 0.34 14.78 4.08 51.20 0.38

Portugal 60 1.91 6.44 22.92 22.31 0.41

Russia* 35 3.11 25.60 37.32 88.68 0.41

Slovakia* 24 −3.38 7.46 −40.56 25.84 −0.25

Turkey 60 0.70 16.61 8.40 57.54 0.27

Mideast/Africa

Egypt* 35 0.89 7.79 10.68 26.99 0.19

Israel* 24 0.32 6.78 3.84 23.49 0.51

Jordan 60 0.28 3.61 3.36 12.51 0.09



Morocco* 35 2.73 4.72 32.76 16.35 −0.46

Nigeria 60 2.86 17.00 34.32 58.89 0.02

Saudi Arabia* 12 −2.47 4.46 −29.64 15.45 −0.18

South Africa 60 −0.17 8.62 −2.04 29.86 0.46

Zimbabwe 60 −0.70 12.07 −8.40 41.81 0.30

Regions

Composite 60 −0.71 6.32 −8.52 21.89 0.67

Latin America 60 −0.13 8.81 −1.56 30.52 0.59

Asia 60 −1.06 6.78 −12.72 23.49 0.56

EMEA* 35 −0.37 7.57 −4.44 26.22 0.62

Europe* 35 1.34 10.06 16.08 34.85 0.55

E. Europe* 35 0.23 13.94 2.76 48.29 0.53

ME & Africa* 35 −1.60 6.85 −19.20 23.73 0.56

Developed Markets

U.S., S&P 500 60 1.70 4.00 20.40 13.86 1.00

U.K., FT100 60 1.18 3.77 14.16 13.06 0.64

Japan, Nikkei 60 −0.18 6.71 −2.16 23.24 0.40

FT, EuroPac 60 0.61 4.08 7.32 14.13 0.66

Note: Statistical data based on less than 60 months of results.



IFCG Price Index Annualized Standard Deviation, 1993−1998

IFCG Price Index Annualized Mean Return, 1993−1998

IFCG Price Index Correlations:(US$; December 1993−December 1998)


IFCG Price Index Correlations: (US$; December 1993−December 1998) 99

Note: Correlations are for a 60−month period ending in December 1998, except as noted on p.56.

IFCG Price Index Correlations with S&P 500:(US$; December 1993−December 1998)


IFCG Price Index Correlations with S&P 500: (US$; December 1993−December 1998) 100

IFCG Price Index Correlations with S&P 500, 1993−1998

IFCG Total Return Indexes 1998 Performance Summary:(Ranked by 1998 % Change in US$)

Rank Market

% change inIFCG TotalReturn Index

EmergingMarkets 1 Korea 122.1

2 Greece 95.6

3 Portugal 40.2

4 Thailand 32.7

5 Morocco 29.7


IFCG Total Return Indexes 1998 Performance Summary: (Ranked by 1998 % Change in US$) 101

6 Philippines 10.8

7 Jordan 10.8

8 Malaysia 1.4


10 Hungary −9.8

11 Poland −10.8

12 India −13.6

13 Israel −14.4



16 China −22.6

17 Saudi Arabia −23.4

18 Nigeria −25.1

19 Egypt −25.3


21 Chile −27.5



24 Mexico −37.3

25 Peru −38.0

26 Brazil −38.9

27 Colombia −40.7


29 Turkey −51.7

30 Slovakia −52.9

31 Pakistan −55.9

32 Zimbabwe −57.8

33 Russia −87.4


2 Composite −21.1


4 EMEA −25.6

5 Europe −27.3




7 E. Europe −64.4


2 U.K.,FT−EuroPac

19.3

Note: Neither local Japanese index (Nikkei or Topix) publish atotal return index.

Percent Change in IFCG Total Return Indexes, 1998



IFCG Total Return Indexes 1998 High, Low, Close:(US$; Year−end and Daily Closing Levels)


Latin America

Argentina 2,746.2 2,818.0 Mar 26 1,361.6 Sep 10 2,032.5

Brazil 720.9 814.6 Apr 15 330.8 Sep 10 440.3

Chile 5,944.9 6,003.5 Mar 17 3,270.2 Sep 14 4,311.4

Colombia 3,978.1 3,934.9 Jan 2 1,638.0 Oct 15 2,357.1

Mexico 3,045.4 3,039.1 Jan 2 1,339.5 Sep 10 1,909.9

Peru 281.2 282.8 May 4 164.2 Sep 22 174.2


Asia

China 138.5 148.6 Jun 3 105.5 Aug 17 107.2

India 366.1 440.3 Apr 21 286.7 Oct 20 316.3


Korea 134.5 299.1 Dec 30 121.7 Jun 16 298.6

Malaysia 132.0 188.0 Feb 10 60.9 Sep 1 133.8

Pakistan 454.6 454.6 Jan 2 154.0 Oct 21 200.5

Philippines 1,890.6 2,528.3 Mar 25 1,043.1 Sep 11 2,095.7

Sri Lanka 100.9 115.6 Apr 24 60.3 Sep 4 83.5

Taiwan, China 1,025.0 1,193.8 Mar 2 672.9 Sep 3 826.2

Thailand 210.1 387.0 Mar 23 130.2 Sep 3 278.7

Europe


Greece 1,065.2 2,083.8 Dec 31 985.5 Jan 29 2,083.8

Hungary 247.7 285.2 Apr 3 144.7 Sep 21 223.5

Poland 650.5 894.4 May 5 468.1 Oct 9 580.1

Portugal 1,567.4 2,585.9 Apr 22 1,599.6 Jan 2 2,198.0

Russia 638.7 652.3 Jan 5 40.5 Oct 2 80.4

Slovakia 109.1 109.4 Jan 2 46.3 Nov 24 51.4


IFCG Total Return Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Levels) 104

Turkey 1,300.2 1,382.3 Jan 5 502.4 Oct 8 628.1

Mideast/Africa

Egypt 183.1 183.5 Jan 2 131.3 Aug 28 136.8

Israel 124.4 139.0 Jun 8 88.3 Oct 8 106.5

Jordan 259.4 308.2 Aug 17 253.7 Feb 16 287.3

Morocco 199.4 283.6 Oct 8 196.0 Jan 20 258.6

Nigeria 216.7 214.0 Jan 2 158.9 Sep 9 162.4

Saudi Arabia 100.0 104.3 May 11 70.9 Dec 8 76.6


Zimbabwe 1,092.4 1,430.2 Mar 31 416.9 Sep 24 460.9

Regions


Latin America 1,326.9 1,337.4 Jan 2 624.3 Sep 10 854.9

Asia 283.1 337.2 Mar 2 193.7 Sep 1 267.3

Europe 226.5 255.1 Apr 22 118.0 Oct 5 164.4

Mideast/Africa 79.7 98.9 Apr 20 55.7 Aug 28 61.9


IFCG Total Return Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Levels) 105

IFCG Total Return Indexes High and Low vs. 1997 Close

IFCG Total Return Indexes Regional vs. Developed Market Performance, 1998:(End−of−period Values in US$; End 1984=100)


Indexlevels

IFCGComposite 420.9 464.3 479.2 475.4 418.8 375.7 386.5 288.2 302.5 333.4 358.3 352.3

IFCG LatinAmerica

1,174.2 1,228.6 1,312.2 1,298.9 1,137.8 1,074.9 1,115.6 743.7 789.2 845.2 925.5 854.9

IFCG Asia 280.5 330.5 326.7 304.0 267.8 234.1 237.7 198.1 214.3 239.3 263.6 267.4

IFCG EMEA* 120.3 127.4 135.3 146.5 129.8 114.4 118.5 85.1 84.5 93.8 95.9 94.7

952.1 1,020.8 1,073.0 1,083.8 1,065.2 1,108.5 1,096.7 938.3 998.4 1,079.6 1,145.0 1,210.9


IFCG Total Return Indexes Regional vs. Developed Market Performance, 1998: (End−of−period Values in US$; End 1984=100)106

U.S., S&P 500

FT, EuroPac 637.7 678.4 697.5 700.0 698.6 698.6 704.0 617.2 601.2 664.6 701.0 726.1

% changeIFCGComposite −5.7 10.3 3.2 −0.8 −11.9 −10.3 2.9 −25.4 4.9 10.2 7.5 −1.7

IFCG LatinAmerica

−11.5 4.6 6.8 −1.0 −12.4 −5.5 3.8 −33.3 6.1 7.1 9.5 −7.6

IFCG Asia −0.9 17.8 −1.1 −7.0 −11.9 −12.6 1.6 −16.7 8.2 11.7 10.1 1.4

IFCG EMEA −5.5 5.9 6.2 8.3 −11.4 −11.8 3.6 −28.2 −0.7 11.0 2.2 −1.2

U.S., S&P 500 10.6 7.2 5.1 1.0 −1.7 4.1 −1.1 −14.4 6.4 8.1 6.1 5.8

FT, EuroPac 4.8 6.4 2.8 0.4 −0.2 0.0 0.8 −12.3 −2.6 10.6 5.5 3.6

Note: The IFCG EMEA Index has a base date of December 1995=100.

IFCG Regional Total Return Indexes vs. U.S. S&P 500, 1998(daily; rebased to end−1997=100)

IFCG Total Return Indexes Regional vs. Developed Market Performance, 1989−1998:(End−of−period Values in US$; End 1984=100)

Index 1989 1990 1 991 1992 1993 1994 1995 1996 1997 1998

Indexlevels IFCG Composite400.5 280.9 330.3 331.4 555.2 552.2 484.2 522.3 446.4 352.3

IFCG LatinAmerica

289.8 279.0 623.7 659.3 1,032.2 1,030.9 866.8 1,032.5 1,326.9 854.9

IFCG Asia 490.7 313.5 315.2 319.3 543.2 545.9 470.2 497.3 283.1 267.4

IFCG EMEA* − − − − − − 100.0 100.3 127.3 94.7

251.9 244.1 318.3 342.7 376.9 381.8 524.7 645.6 860.8 1,210.9


IFCG Total Return Indexes Regional vs. Developed Market Performance, 1989−1998: (End−of−period Values in US$; End 1984=100)107

U.S., S&P 500

FT, EuroPac 485.2 369.6 416.2 362.9 477.3 521.0 576.4 609.9 608.6 726.1

% change IFCG Composite54.7 −29.9 17.6 0.3 67.5 −0.5 −12.3 7.9 −14.5 −21.1

IFCG LatinAmerica

51.6 −3.7 123.5 5.7 56.6 −0.1 −15.9 19.1 28.5 −35.6

IFCG Asia 54.9 −36.1 0.5 1.3 70.1 0.5 −13.9 5.8 −43.1 −5.6

IFCG EMEA − − − − − − − 0.3 26.9 −25.6

U.S., S&P 500 31.6 −3.1 30.4 7.6 10.0 1.3 37.4 23.0 33.3 40.7

FT, EuroPac 11.3 −23.8 12.6 −12.8 31.5 9.2 10.6 5.8 −0.2 19.3

Note. The IFCG EMEA Index has a base date of December 1995=100.

IFCG Regional Total Return Indexes vs. U.S. S&P 500, 1989−1998(monthly; end−1988=100)

IFCG Total Return Indexes 1998:(End−of−period Values in US$)

Market Base date(= 100.0)


Latin America

Argentina Dec−84 2,501.4 2,711.7 2,808.3 2,760.5 2,428.3 2,280.6 2,447.2 1,652.0 1,870.7 2,135.7 2,246.0 2,032.5

Brazil Dec−84 670.5 718.2 787.7 774.1 652.5 638.0 693.5 434.6 433.0 451.0 539.0 440.3

Chile Dec−84 5,082.8 5,563.0 5,929.4 5,645.8 5,191.7 4,774.6 5,014.8 3,681.5 3,801.5 4,105.8 4,801.0 4,311.4

Colombia Dec−84 3,570.4 3,125.7 3,058.7 3,152.8 2,906.7 2,792.4 2,559.7 2,051.1 1,821.1 1,737.1 2,190.1 2,357.1


IFCG Total Return Indexes 1998: (End−of−period Values in US$) 108

Mexico Dec−84 2,581.5 2,639.0 2,794.7 2,860.0 2,488.4 2,330.5 2,295.0 1,523.8 1,723.2 1,889.1 1,815.1 1,909.9

Peru Dec−92 252.4 241.9 266.4 280.5 270.4 250.7 254.8 182.4 175.3 171.0 199.7 174.2

Venezuela Dec−84 633.1 612.6 627.1 485.9 499.7 385.4 381.3 230.2 313.6 294.3 316.8 385.4

Asia

China Dec−92 137.0 137.2 138.7 144.6 148.3 133.6 129.9 112.6 118.8 114.6 117.0 107.2

India Dec−84 330.3 363.1 393.2 409.7 369.7 319.1 317.8 296.7 313.1 291.7 289.5 316.3

Indonesia Dec−89 23.3 27.2 32.5 28.0 17.1 14.2 18.0 15.3 11.6 17.9 26.2 25.6

Korea Dec−84 229.8 213.0 215.1 198.5 152.5 135.3 173.8 140.1 133.9 177.8 217.7 298.6

Malaysia Dec−84 118.7 182.4 175.5 148.1 122.7 96.1 87.1 63.9 88.7 95.2 121.9 133.8

Pakistan Dec−84 422.6 425.6 407.3 405.0 262.7 196.5 189.1 193.2 219.9 161.6 217.2 200.5

Philippines Dec−84 1,815.9 2,295.4 2,406.9 2,194.4 2,098.9 1,710.9 1,549.6 1,126.6 1,192.0 1,751.2 2,048.4 2,095.7

Sri Lanka Dec−92 94.9 101.6 104.6 115.3 94.8 79.1 81.6 65.2 67.4 67.2 80.7 83.5

Taiwan, China Dec−84 970.3 1,181.8 1,117.9 1,005.8 910.0 835.7 849.5 706.5 760.5 858.8 909.3 826.2

Thailand Dec−84 274.0 363.5 343.2 312.3 224.2 169.4 171.8 131.5 171.1 251.4 285.8 278.7

Europe


Greece Dec−84 995.4 1,024.5 1,321.7 1,726.1 1,796.2 1,640.3 1,988.1 1,508.0 1,563.5 1,638.1 1,890.6 2,083.8

Hungary Dec−92 223.4 246.8 272.6 266.8 232.7 246.7 268.4 165.9 162.9 192.0 208.7 223.5

Poland Dec−92 658.6 828.7 793.8 863.4 749.4 765.4 823.3 513.8 545.6 580.3 539.8 580.1

Portugal Jan−86 1,752.7 1,986.1 2,219.7 2,436.0 2,371.8 2,165.6 2,351.9 2,019.8 1,764.9 2,120.7 2,145.9 2,198.0

Russia Dec−95 441.2 491.3 524.7 506.0 305.9 238.1 234.5 87.9 48.3 74.1 105.4 80.4

Slovakia Dec−95 96.1 92.9 84.8 82.3 69.7 64.4 67.9 67.6 60.8 52.5 47.3 51.4

Turkey Dec−86 1,233.3 1,090.9 1,018.3 1,273.1 1,095.6 1,152.1 1,157.6 686.9 604.4 578.9 650.8 628.1

Mideast/Africa

Egypt Dec−95 173.3 172.4 178.0 175.3 160.9 153.8 151.7 134.2 143.3 136.9 134.9 136.8

Israel Dec−96 112.7 117.3 126.8 124.9 134.1 129.0 129.3 114.5 109.7 97.9 105.7 106.5

Jordan Dec−84 258.1 260.4 259.0 269.9 294.1 281.9 300.1 300.8 289.4 272.0 280.2 287.3

Morocco Dec−95 198.3 208.6 216.5 238.2 249.9 250.8 255.4 276.9 279.5 271.6 260.0 258.6

Nigeria Dec−84 198.6 191.0 185.5 178.5 163.6 172.6 173.5 164.9 167.8 167.8 170.1 162.4

Saudi Arabia Dec−97 100.3 95.2 92.9 100.5 99.5 96.5 96.6 91.6 89.8 80.7 79.2 76.6


IFCG Total Return Indexes 1998: (End−of−period Values in US$) 109

South Africa Dec−92 218.9 234.9 247.7 270.0 238.3 183.2 180.3 121.0 138.8 169.2 160.1 148.4

Zimbabwe Dec−84 1,249.4 1,296.6 1,430.2 1,177.1 1,038.7 1,080.6 940.8 558.4 470.5 434.0 424.7 460.9

IFCG Total Return Indexes 1998:(Monthly % Change in US$)


Latin America

Argentina −8.9 8.4 3.6 −1.7 −12.0 −6.1 7.3 −32.5 13.2 14.2 5.2 −9.5

Brazil −7.0 7.1 9.7 −1.7 −15.7 −2.2 8.7 −37.3 −0.4 4.2 19.5 −18.3

Chile −14.5 9.4 6.6 −4.8 −8.0 −8.0 5.0 −26.6 3.3 8.0 16.9 −10.2

Colombia −10.2 −12.5 −2.1 3.1 −7.8 −3.9 −8.3 −19.9 −11.2 −4.6 26.1 7.6

Mexico −15.2 2.2 5.9 2.3 −13.0 −6.3 −1.5 −33.6 13.1 9.6 −3.9 5.2

Peru −10.2 −4.2 10.1 5.3 −3.6 −7.3 1.6 −28.4 −3.8 −2.5 16.8 −12.8

Venezuela −16.7 −3.2 2.4 −22.5 2.8 −22.9 −1.1 −39.6 36.2 −6.2 7.7 21.6

Asia

China −1.1 0.1 1.1 4.3 2.5 −9.9 −2.8 −13.3 5.5 −3.5 2.1 −8.4

India −9.8 9.9 8.3 4.2 −9.7 −13.7 −0.4 −6.7 5.5 −6.8 −0.7 9.3

Indonesia −35.0 16.9 19.2 −13.9 −38.7 −16.9 26.7 −15.4 −24.1 54.7 46.3 −2.5

Korea 70.9 −7.3 1.0 −7.7 −23.2 −11.2 28.4 −19.4 −4.4 32.8 22.5 37.1

Malaysia −10.1 53.7 −3.8 −15.6 −17.2 −21.6 −9.4 −26.6 38.7 7.3 28.1 9.8

Pakistan −7.0 0.7 −4.3 −0.6 −35.1 −25.2 −3.7 2.2 13.8 −26.5 34.4 −7.7

Philippines −4.0 26.4 4.9 −8.8 4.4 −18.5 −9.4 −27.3 5.8 46.9 17.0 2.3

Sri Lanka −5.9 7.1 3.0 10.2 −17.8 −16.6 3.2 −20.1 3.4 −0.4 20.1 3.4

Taiwan, China −5.3 21.8 −5.4 −10.0 −9.5 −8.2 1.6 −16.8 7.7 12.9 5.9 −9.1

Thailand 30.4 32.6 −5.6 −9.0 −28.2 −24.4 1.4 −23.4 30.1 46.9 13.7 −2.5

Europe

Czech Republic −9.2 9.4 4.0 3.1 −7.4 0.7 12.6 −24.7 −0.5 10.7 −3.1 2.5

Greece −6.6 2.9 29.0 30.6 4.1 −8.7 21.2 −24.2 3.7 4.8 15.4 10.2

Hungary −9.8 10.5 10.5 −2.1 −12.8 6.0 8.8 −38.2 −1.8 17.9 8.7 7.1

Poland 1.2 25.8 −4.2 8.8 −13.2 2.1 7.6 −37.6 6.2 6.4 −7.0 7.5


IFCG Total Return Indexes 1998: (Monthly % Change in US$) 110

Portugal 11.8 13.3 11.8 9.7 −2.6 −8.7 8.6 −14.1 −12.6 20.2 1.2 2.4

Russia −30.9 11.4 6.8 −3.6 −39.5 −22.2 −1.5 −62.5 −45.0 53.2 42.3 −23.7

Slovakia −12.0 −3.3 −8.7 −3.0 −15.3 −7.6 5.3 −0.4 −10.0 −13.7 −10.0 8.7

Turkey −5.1 −11.5 −6.7 25.0 −13.9 5.2 0.5 −40.7 −12.0 −4.2 12.4 −3.5

Mideast/Africa

Egypt −5.4 −0.5 3.3 −1.5 −8.2 −4.4 −1.4 −11.6 6.8 −4.4 −1.5 1.5

Israel −9.5 4.2 8.0 −1.5 7.4 −3.9 0.2 −11.5 −4.1 −10.8 8.0 0.7

Jordan −0.5 0.9 −0.5 4.2 9.0 −4.2 6.5 0.2 −3.8 −6.0 3.0 2.6

Morocco −0.5 5.2 3.8 10.0 4.9 0.4 1.9 8.4 0.9 −2.8 −4.3 −0.6

Nigeria −8.4 −3.8 −2.9 −3.8 −8.4 5.5 0.5 4.9 1.7 0.0 1.4 −4.5

Saudi Arabia 0.3 −5.1 −2.4 8.1 −1.0 −3.1 0.2 −5.2 −1.9 −10.1 −1.8 −3.4

South Africa 5.7 7.3 5.4 9.0 −11.7 −23.1 −1.6 −32.9 14.7 21.9 −5.4 −7.3

Zimbabwe 14.4 3.8 10.3 −17.7 −11.8 4.0 −12.9 −40.6 −15.7 −7.8 −2.1 8.5

IFCG Total Return Indexes 1989−1998:(End−of−period Values in US$)


1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina Dec−84 540.7 343.1 1,704.8 1,253.1 2,164.7 1,661.4 1,872.1 2,290.0 2,746.2 2,032.5

Brazil Dec−84 170.7 58.6 158.4 158.9 316.9 538.2 429.3 577.2 720.9 440.3

Chile Dec−84 1,026.0 1,440.9 2,853.9 3,315.6 4,462.9 6,470.7 6,508.0 5,575.3 5,944.9 4,311.4

Colombia Dec−84 389.8 535.9 1,561.1 2,171.6 2,925.4 3,770.7 2,874.5 3,106.0 3,978.1 2,357.1

Mexico Dec−84 802.7 1,041.0 2,152.4 2,608.2 3,909.8 2,320.9 1,717.9 2,024.2 3,045.4 1,909.9

Peru Dec−92 − − − 100.0 137.2 210.6 233.8 241.1 281.2 174.2

Venezuela Dec−84 89.4 627.4 907.4 523.6 487.3 362.2 255.5 609.5 760.5 385.4

Asia

China Dec−92 − − − 100.0 92.7 62.1 54.4 104.2 138.5 107.2

India Dec−84 240.7 285.9 338.5 416.0 494.0 530.7 349.2 341.8 366.1 316.3

Indonesia Dec−89 100.0 99.4 57.4 59.0 126.0 101.6 113.8 136.4 35.8 25.6


IFCG Total Return Indexes 1989−1998: (End−of−period Values in US$) 111

Korea Dec−84 797.5 595.3 500.8 518.6 627.1 746.6 695.4 429.9 134.4 298.6

Malaysia Dec−84 178.2 158.2 177.3 226.9 460.3 361.3 374.2 465.9 132.0 133.8

Pakistan Dec−84 184.6 205.0 557.8 455.1 710.9 650.3 447.8 360.4 454.6 200.5

Philippines Dec−84 2,371.5 1,094.0 1,738.5 2,056.8 4,831.5 4,802.3 4,125.5 4,965.0 1,890.6 2,095.7

Sri Lanka Dec−92 − − − 100.0 165.4 164.8 102.3 90.8 100.9 83.5

Taiwan, China Dec−84 1,407.1 690.8 686.6 503.7 952.2 1,166.2 808.7 1,110.8 1,025.0 826.2

Thailand Dec−84 679.3 538.4 641.8 900.4 1,827.8 1,621.2 1,598.1 1,013.4 210.1 278.7

Europe

Czech RepublicDec−93 − − − − 100.0 81.1 65.0 79.1 56.2 51.8

Greece Dec−84 446.4 911.2 735.9 537.4 655.3 668.6 737.5 774.8 1,065.2 2,083.8

Hungary Dec−92 − − − 100.0 124.6 105.5 76.9 152.1 247.7 223.5

Poland Dec−92 − − − 100.0 839.6 484.0 450.4 784.2 650.5 580.1

Portugal Jan−86 874.5 613.8 624.3 503.1 694.6 834.0 824.5 1,064.5 1,567.4 2,198.0

Russia Dec−95 − − − − − − 100.0 261.1 638.7 80.4

Slovakia Dec−95 − − − − − − 100.0 119.2 109.1 51.4

Turkey Dec−86 849.0 825.3 480.5 227.0 759.0 449.7 402.1 599.0 1,300.2 628.1

Mideast/Africa

Egypt Dec−95 − − − − − − 100.0 148.1 183.1 136.8

Israel Dec−96 − − − − − − − 100.0 124.4 106.5

Jordan Dec−84 121.4 126.6 145.8 181.8 225.7 203.7 229.5 226.6 259.4 287.3

Morocco Dec−95 − − − − − − 100.0 142.0 199.4 258.6

Nigeria Dec−84 51.1 71.9 99.0 64.4 57.0 165.8 131.1 213.8 216.7 162.4

Saudi Arabia Dec−97 − − − − − − − − 100.0 76.6

South Africa Dec−92 − − − 100.0 182.4 239.5 282.1 233.9 207.1 148.4

Zimbabwe Dec−84 1,028.9 2,005.8 956.1 384.8 938.0 1,203.2 1,403.8 2,338.8 1,092.4 460.9

IFCG Total Return Indexes 1989−1998:(Annual % Change in US$)


IFCG Total Return Indexes 1989−1998: (Annual % Change in US$) 112

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina 175.9 −36.6 396.9 −26.5 72.7 −23.3 12.7 22.3 19.9 −26.0

Brazil 39.9 −65.7 170.4 0.3 99.4 69.8 −20.2 34.4 24.9 −38.9

Chile 51.2 40.4 98.1 16.2 34.6 45.0 0.6 −14.3 6.6 −27.5

Colombia 12.2 37.5 191.3 39.1 34.7 28.9 −23.8 8.1 28.1 −40.7

Mexico 73.4 29.7 106.8 21.2 49.9 −40.6 −26.0 17.8 50.4 −37.3

Peru − − − − 37.2 53.5 11.0 3.1 16.6 −38.0

Venezuela −33.1 601.6 44.6 −42.3 −6.9 −25.7 −29.5 138.6 24.8 −49.3

Asia

China − − − − −7.3 −33.0 −12.4 91.4 33.0 −22.6

India 4.3 18.8 18.4 22.9 18.8 7.4 −34.2 −2.1 7.1 −13.6

Indonesia − −0.6 −42.3 2.9 113.4 −19.3 12.0 19.8 −73.7 −28.7

Korea 7.0 −25.4 −15.9 3.6 20.9 19.1 −6.9 −38.2 −68.7 122.1

Malaysia 44.0 −11.2 12.1 27.9 102.9 −21.5 3.6 24.5 −71.7 1.4

Pakistan 6.4 11.1 172.1 −18.4 56.2 −8.5 −31.1 −19.5 26.1 −55.9

Philippines 59.5 −53.9 58.9 18.3 134.9 −0.6 −14.1 20.4 −61.9 10.8

Sri Lanka − − − − 65.4 −0.4 −38.0 −11.2 11.1 −17.3

Taiwan, China 100.0 −50.9 −0.6 −26.6 89.0 22.5 −30.7 37.4 −7.7 −19.4

Thailand 100.8 −20.7 19.2 40.3 103.0 −11.3 −1.4 −36.6 −79.3 32.7

Europe

Czech Republic − − − − − −18.9 −19.9 21.7 −29.0 −7.8

Greece 80.2 104.1 −19.2 −27.0 21.9 2.0 10.3 5.1 37.5 95.6

Hungary − − − − 24.6 −15.3 −27.1 97.8 62.9 −9.8

Poland − − − − 739.6 −42.4 −6.9 74.1 −17.0 −10.8

Portugal 40.1 −29.8 1.7 −19.4 38.1 20.1 −1.1 29.1 47.2 40.2

Russia − − − − − − − 161.1 144.6 −87.4

Slovakia − − − − − − − 19.2 −8.5 −52.9

Turkey 502.4 −2.8 −41.8 −52.8 234.3 −40.7 −10.6 49.0 117.1 −51.7


IFCG Total Return Indexes 1989−1998: (Annual % Change in US$) 113

Mideast/Africa

Egypt − − − − − − − 48.1 23.6 −25.3

Israel − − − − − − − − 24.4 −14.4

Jordan −1.1 4.2 15.1 24.7 24.2 −9.7 12.7 −1.3 14.5 10.8

Morocco − − − − − − − 42.0 40.4 29.7

Nigeria 21.1 40.6 37.8 −34.9 −11.6 190.9 −20.9 63.0 1.4 −25.1

Saudi Arabia − − − − − − − − − −23.4

South Africa − − − − 82.4 31.3 17.8 −17.1 −11.5 −28.4

Zimbabwe 40.8 94.9 −52.3 −59.8 143.8 28.3 16.7 66.6 −53.3 −57.8

Statistics of the IFCG Total Return Indexes:(US$; December 1993−December 1998)

Market

Numberofmonths

Mean of%change

Standarddeviation

Annualizedmean


CorrelationwithS&P 500

Latin America

Argentina 60 0.39 9.74 4.68 33.74 0.58

Brazil 60 1.31 12.26 15.72 42.47 0.41

Chile 60 0.28 8.19 3.36 28.37 0.41

Colombia 60 −0.04 8.12 −0.48 28.13 0.07

Mexico 60 −0.46 11.49 −5.52 39.80 0.45

Peru 60 0.82 9.32 9.84 32.29 0.17

Venezuela 60 0.88 15.42 10.56 53.42 0.24

Asia

China 60 1.25 16.39 15.00 56.78 0.07

India 60 −0.43 8.04 −5.16 27.85 0.17

Indonesia 60 −1.21 16.74 −14.52 57.99 0.35

Korea 60 −0.13 15.71 −1.56 54.42 0.40

Malaysia 60 −1.15 13.80 −13.80 47.80 0.44

Pakistan 60 −1.45 11.18 −17.40 38.73 0.17

Philippines 60 −0.77 11.35 −9.24 39.32 0.49

Sri Lanka 60 −0.74 8.91 −8.88 30.87 0.31


Statistics of the IFCG Total Return Indexes: (US$; December 1993−December 1998) 114

Taiwan, China 60 0.15 8.94 1.80 30.97 0.36

Thailand 60 −2.02 14.74 −24.24 51.06 0.59

Europe

Czech Republic* 59 −1.43 7.63 −17.16 26.43 0.21

Greece 60 2.35 9.30 28.20 32.22 0.33

Hungary 60 1.78 12.88 21.36 44.62 0.47

Poland 60 0.48 14.79 5.76 51.23 0.37

Portugal 60 2.14 6.37 25.68 22.07 0.46

Russia* 35 3.23 25.67 38.76 88.92 0.32

Slovakia* 24 −3.17 7.45 −38.04 25.81 −0.32

Turkey 60 1.02 16.56 12.24 57.37 0.25

Mideast/Africa

Egypt* 35 1.30 7.94 15.60 27.50 0.13

Israel* 24 0.49 6.82 5.88 23.63 0.39

Jordan 60 0.47 3.63 5.64 12.57 0.07

Morocco* 35 2.91 4.67 34.92 16.18 −0.50

Nigeria 60 3.33 17.07 39.96 59.13 0.01

Saudi Arabia* 12 −2.11 4.29 −25.32 14.86 −0.06

South Africa 60 0.05 8.64 0.60 29.93 0.47

Zimbabwe 60 −0.37 12.09 −4.44 41.88 0.34

Regions

Composite 60 −0.54 6.33 −6.48 21.93 0.62

Latin America 60 0.10 8.83 1.20 30.59 0.52

Asia 60 −0.94 6.78 −11.28 23.49 0.54

EMEA* 35 −0.16 7.56 −1.92 26.19 0.56

Europe* 35 1.54 10.02 18.48 34.71 0.45

E. Europe* 35 0.33 13.93 3.96 48.25 0.41

ME & Africa* 35 −1.37 6.88 −16.44 23.83 0.57



DevelopedMarkets

U.S., S&P 500 60 2.05 4.15 24.60 14.38 1.00

FT Europac 60 0.78 4.07 9.36 14.10 0.68

Note : Statistical data based on less than 60 months of results.

IFCG Total Return Index Annualized Standard Deviation, 1993−1998

IFCG Total Return Index Annualized Mean Return, 1993−1998



IFCG Total Return Index Correlations:(US$; December 1993−December 1998)

Notes: Correlations are for 60−month period ending in December 1998, except as noted on p. 68.

IFCG Total Return Index Correlations with S&P 500:(US$; December 1993−December 1998)


IFCG Total Return Index Correlations: (US$; December 1993−December 1998) 117

IFCG Total Return Index Correlations with S&P 500, 1993−1998

Industry Weights in the IFCG Composite Index End−1998

SIC Sector/Industry

NumberofStocks

Marketcapitalization(US$millions)

Weight inIFCGComposite(%)

0 Agriculture/forestry/fishing 45 7,012 0.8

1 Mining 74 42,231 4.9

10 Metal Mining 43 15,299 1.8

2 Construction 76 14,134 1.6

15 General Building Contractors 42 9,200 1.1

3 Manufacturing 938 325,420 37.8


Industry Weights in the IFCG Composite Index End−1998 118

20 Food & Kindred Products 127 45,615 5.3

22 Textile Mill Products 53 8,648 1.0

23 Apparel & Other Textile Products 23 6,431 0.7

26 Paper & Allied Products 46 14,665 1.7

28 Chemicals & Allied Products 128 22,824 2.6

29 Petroleum Refining & RelatedProducts

44 21,317 2.5

30 Rubber & Misc. Plastics Products 33 8,980 1.0

32 Cement & Glass Products 108 26,376 3.1

33 Primary Metal Industries 39 10,163 1.2

34 Fabricated Metal Products 51 7,310 0.8

36 Electric & Electronic Equipment 133 103,506 12.0

37 Transportation Equipment 53 12,730 1.5

39 Miscellaneous Manufacturing 35 15,080 1.8

4 Transportation/communication/utility219 158,160 18.4

44 Water Transportation 20 6,409 0.7

48 Communications 81 100,358 11.7

49 Electric, Gas or Sanitary Services 88 46,618 5.4

5 Wholesale/retail trade 96 27,793 3.2

6 Finance/insurance/real estate 390 232,415 27.0

60 Banking 175 155,134 18.0

61 Credit Agencies Other Than Banks 36 5,290 0.6

62 Security & Commodity Brokers 28 6,677 0.8

63 Insurance 28 23,558 2.7

7 Services 52 12,341 1.4

70 Hotels & Other Lodging Places 23 3,506 0.4

9 Other/diversified holding companies103 41,580 4.8

1,993 861,413 100.0


Industry Weights in the IFCG Composite Index End−1998 119

IFCG Composite Index

Weights in the IFCG Composite Index, End−1998

Stock Distribution by Industry in theIFCG Composite Index, End−1998

Industry Concentration in IFCG Composite Index End−1998:(Percent)

Market

Sector withlargest share ofmarket cap

Sector'sshare ofmarket cap

Latin America

Argentina Mining 46.1

Brazil Transportation / communication/ utility

50.7

Chile Transportation / communication/ utility

45.6

Colombia Finance / insurance / real estate44.6

Mexico Transportation / communication/ utility

30.8

Peru Transportation / communication/ utility

34.6

Venezuela Transportation / communication/ utility

44.9


Industry Concentration in IFCG Composite Index End−1998: (Percent) 120

Asia

China Manufacturing 41.9

India Manufacturing 80.7

Indonesia Manufacturing 67.0

Korea Manufacturing 54.0

Malaysia Transportation / communication/ utility

22.0

Pakistan Manufacturing 55.7

Philippines Finance / insurance / real estate46.6

Sri Lanka Finance / insurance / real estate33.1

Taiwan, China Manufacturing 67.6

Thailand Finance / insurance / real estate36.6

Europe

Czech RepublicTransportation / communication/ utility

53.3

Greece Finance / insurance / real estate51.6

Hungary Transportation / communication/ utility

51.1

Poland Finance / insurance / real estate46.1

Portugal Finance / insurance / real estate50.8

Russia Mining 72.4

Slovakia Manufacturing 82.8

Turkey Finance / insurance / real estate58.9

Mideast/Africa

Egypt Manufacturing 61.1

Israel Manufacturing 39.3

Jordan Finance / insurance / real estate79.6

Morocco Finance / insurance / real estate65.5

Nigeria Manufacturing 56.5

Saudi Arabia Finance / insurance / real estate74.7

South Africa Finance / insurance/ real estate37.9


Industry Concentration in IFCG Composite Index End−1998: (Percent) 121

Zimbabwe Finance / insurance/ real estate57.7

IFCGComposite Manufacturing 37.8

Share of Market Cap of Largest Sector, End−1998

Industry Distribution by Market Capitalization of IFCG Composite Index, 1998:(US$ Millions; End−1998)


Industry Distribution by Market Capitalization of IFCG Composite Index, 1998: (US$ Millions; End−1998)122

Note: Figures may not precisely add up due to rounding.




Industry Distribution by Market Capitalization of IFCG Composite Index, 1998: (US$ Millions; End−1998)123


Industry Weights by Market Capitalization of IFCG Composite Index, 1998:(% of Market Capitalization; End−1998)


Industry Weights by Market Capitalization of IFCG Composite Index, 1998: (% of Market Capitalization; End−1998)124





Industry Weights by Market Capitalization of IFCG Composite Index, 1998: (% of Market Capitalization; End−1998)125


Industry Distribution by Number of Stocks in IFCG Composite Index, 1998:(End−1998)


Industry Distribution by Number of Stocks in IFCG Composite Index, 1998: (End−1998) 126





Industry Distribution by Number of Stocks in IFCG Composite Index, 1998: (End−1998) 127


IFCG Industry Price Indexes 1998 Performance Summary:(US$; End 1984=100)

SIC Sector/IndustryEnd−1998

% changefromEnd−1997

0 Agriculture/forestry/fishing 103.7 −7.0

1 Mining 110.2 −51.9

110 Metal Mining 74.8 −20.5

Construction 156.6 −20.0


IFCG Industry Price Indexes 1998 Performance Summary: (US$; End 1984=100) 128

2

215 General Building Contractors 165.9 −27.8

3 Manufacturing 333.8 −16.0

320 Food & Kindred Products 651.3 −15.2

322 Textile Mill Products 224.0 −25.9

323 Apparel & Other Textile Products 107.9 −29.7

326 Paper & Allied Products 460.6 −31.6

328 Chemicals & Allied Products 249.7 −20.7


153.1 −37.2

330 Rubber & Misc. Plastics Products 496.5 −16.7

332 Cement & Glass Products 600.7 −22.4

333 Primary Metal Industries 178.8 −11.7

334 Fabricated Metal Products 59.9 −40.1

336 Electric & Electronic Equipment 760.7 1.5

337 Transportation Equipment 235.6 −26.9

339 Miscellaneous Manufacturing 415.4 0.2

4 Transportation/communication/utility1,199.6 −25.3

444 Water Transportation 185.6 1.1

448 Communications 4,228.2 −19.7

449 Electric, Gas or Sanitary Services 742.2 −38.1

5 Wholesale/retail trade 192.2 −28.4

6 Finance/insurance/real estate 140.7 −15.9

660 Banking 185.6 −14.9

661 Credit Agencies Other Than Banks 122.7 −28.6

662 Security & Commodity Brokers 29.3 199.1

663 Insurance 115.9 −18.8

7 Services 141.0 −18.0


IFCG Industry Price Indexes 1998 Performance Summary: (US$; End 1984=100) 129

770 Hotels & Other Lodging Places 98.3 −27.7

9 Other/diversified holding companies139.9 −31.8

IFCG Composite Price Index 252.8 −22.9

Performance Highlights of IFCG Industry Sector Price Indexes (%)

IFCG Industry Price Indexes 1998:(End−of−period Values in US$; End 1984=100)

SIC Sector/Industry Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0 Agriculture/forestry/fishing 109.4 135.1 136.6 126.5 109.6 103.1 100.2 76.1 83.7 85.1 97.9 103.7

1 Mining 190.7 200.7 211.0 210.9 165.4 145.4 147.0 99.0 104.7 117.4 124.1 110.2

110 Metal Mining 90.9 95.3 100.6 105.9 93.3 85.6 87.4 69.0 80.1 84.3 84.3 74.8

2 Construction 181.4 211.9 208.0 197.9 175.8 155.2 155.4 117.6 130.3 142.8 153.7 156.6

215 General Building Contractors 210.8 237.8 236.4 230.8 204.8 182.2 181.4 135.6 145.9 165.3 173.5 165.9

3 Manufacturing 385.4 429.9 437.8 430.8 381.3 339.2 350.4 278.6 287.8 307.2 336.0 333.8


IFCG Industry Price Indexes 1998: (End−of−period Values in US$; End 1984=100) 130

320 Food & Kindred Products 743.9 780.4 824.6 842.3 764.6 691.2 715.3 547.6 567.1 605.1 641.8 651.3

322 Textile Mill Products 280.1 298.4 306.4 289.2 262.7 236.9 222.6 183.1 204.0 216.2 234.6 224.0

323 Apparel & Other Textile Products 142.0 148.4 158.7 159.1 136.2 128.2 116.0 92.8 101.0 99.7 104.8 107.9

326 Paper & Allied Products 583.5 635.4 705.9 687.5 623.6 559.0 527.6 422.5 392.9 448.9 512.9 460.6

328 Chemicals & Allied Products 300.0 312.7 321.9 322.2 289.0 260.7 263.0 223.1 228.6 230.8 245.9 249.7


231.7 238.4 239.6 245.1 204.3 182.9 192.1 129.1 138.6 156.2 166.2 153.1

330 Rubber & Misc. Plastics Products 583.0 658.8 642.4 612.8 557.4 500.7 486.1 369.5 421.9 478.5 536.5 496.5

332 Cement & Glass Products 702.6 748.6 803.0 825.5 735.2 662.8 669.2 518.8 532.4 571.0 603.6 600.7

333 Primary Metal Industries 216.1 227.0 237.0 245.8 204.3 181.9 194.3 148.8 148.3 160.2 167.2 178.8

334 Fabricated Metal Products 85.6 93.4 99.5 98.7 86.2 73.1 72.7 48.8 55.1 58.8 62.9 59.9

336 Electric & Electronic Equipment 803.0 999.4 951.0 894.1 792.2 680.0 742.2 602.3 618.6 667.2 765.4 760.7

337 Transportation Equipment 293.2 326.9 339.8 331.4 293.5 254.7 251.2 206.6 211.7 210.8 235.2 235.6

339 Miscellaneous Manufacturing 389.2 440.8 463.5 459.8 431.5 393.0 428.0 393.8 414.1 398.5 403.3 415.4

4 Transportation/communication/utility1,487.2 1,604.2 1,708.0 1,664.0 1,429.2 1,347.9 1,415.7 957.8 1,041.4 1,174.4 1,261.0 1,199.6

444 Water Transportation 171.9 190.2 207.6 195.0 185.2 165.2 163.3 137.4 159.5 172.4 185.0 185.6

448 Communications 4,918.8 5,282.5 5,728.9 5,592.8 4,905.8 4,772.5 5,080.2 3,378.5 3,653.2 4,251.5 4,485.6 4,228.2

449 Electric, Gas or Sanitary Services 1,090.0 1,175.2 1,213.9 1,190.5 967.0 869.1 895.9 597.8 649.6 690.0 768.8 742.2

5 Wholesale/retail trade 246.5 256.9 262.2 257.8 231.7 212.0 215.3 161.7 169.8 186.7 191.1 192.2

6 Finance/insurance/real estate 161.4 180.1 184.2 183.6 166.9 148.8 152.2 113.1 116.2 131.4 141.6 140.7

660 Banking 209.9 234.0 239.0 239.0 218.3 196.6 204.7 151.7 155.2 171.3 186.1 185.6

661 Credit Agencies Other Than Banks 160.0 189.9 199.9 182.7 161.7 147.3 143.3 124.0 135.2 148.8 138.6 122.7

662 Security & Commodity Brokers 12.7 13.4 13.3 10.7 8.6 7.3 9.8 7.8 8.5 11.8 18.1 29.3

663 Insurance 141.0 161.0 161.4 156.1 141.1 124.0 122.7 97.0 101.3 124.6 126.8 115.9

7 Services 171.6 195.0 202.0 196.6 169.7 135.4 133.9 104.8 112.1 117.9 129.9 141.0

770 Hotels & Other Lodging Places 128.9 151.3 154.7 147.9 126.3 101.7 102.3 86.5 92.4 93.1 99.1 98.3

9 Other/diversified holding companies188.5 206.9 211.4 219.2 192.4 159.0 154.2 111.0 121.8 134.2 145.5 139.9

309.0 340.7 350.9 346.9 304.6 272.5 279.7 208.2 218.2 240.1 257.8 252.8


IFCG Industry Price Indexes 1998: (End−of−period Values in US$; End 1984=100) 131

IFCG Composite Price Index

IFCG Industry Price Indexes 1989−1998:(End−of−period Values in US$; End 1984=100)

SIC Sector/Industry 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

0 Agriculture/forestry/fishing 155.89 129.48 135.49 138.21 257.6 223.28 186.68 206.63 111.51 103.7

1 Mining 242.5 98.6 136.0 110.2 157.1 231.2 199.3 203.9 229.1 110.2

110 Metal Mining 184.2 70.0 77.2 62.1 98.5 174.7 133.3 127.1 94.2 74.8

2 Construction 537.9 338.4 336.5 356.0 639.2 564.3 483.7 461.0 195.8 156.6

215 General Building Contractors 531.0 290.2 382.9 375.3 651.9 504.2 400.1 403.5 229.8 165.9

3 Manufacturing 424.9 288.4 358.7 327.8 498.5 540.9 432.1 450.1 397.2 333.8

320 Food & Kindred Products 436.8 302.6 517.8 508.8 848.0 809.6 753.1 769.3 767.9 651.3

322 Textile Mill Products 615.0 347.4 493.5 352.2 455.2 567.8 365.5 410.9 302.5 224.0

323 Apparel & Other Textile Products 286.0 190.8 227.5 228.2 268.3 286.7 158.3 154.5 153.5 107.9

326 Paper & Allied Products 738.8 538.8 677.8 564.5 740.7 1,072.9 869.3 803.8 673.2 460.6

328 Chemicals & Allied Products 399.4 292.2 316.7 296.7 415.8 464.4 341.3 358.8 314.8 249.7


197.3 112.6 134.7 107.6 211.7 277.8 194.3 254.9 243.6 153.1

330 Rubber & Misc. Plastics Products 782.3 424.7 488.1 432.9 705.0 753.9 550.2 783.2 596.0 496.5

332 Cement & Glass Products 1,025.5 722.5 985.9 925.1 1,448.7 1,377.3 1,083.4 1,050.7 774.0 600.7

333 Primary Metal Industries 312.4 218.0 233.9 224.5 328.4 379.7 252.9 227.5 202.5 178.8

334 Fabricated Metal Products 182.3 122.5 142.8 122.9 155.7 167.5 123.0 120.7 99.9 59.9

336 Electric & Electronic Equipment 626.3 371.8 407.5 358.7 593.9 733.0 702.7 614.6 749.4 760.7

337 Transportation Equipment 601.2 485.5 506.4 429.0 679.5 567.6 468.2 519.6 322.4 235.6

339 Miscellaneous Manufacturing 173.7 187.0 212.1 286.9 428.9 447.5 357.9 396.8 414.4 415.4

4 Transportation/communication/utility670.1 567.2 941.7 1,047.5 1,678.8 1,613.2 1525.7 1,660.5 1,605.6 1,199.6

444 Water Transportation 355.2 183.5 255.6 250.2 363.1 342.0 289.9 306.1 183.6 185.6

448 Communications 830.3 1,090.6 2,829.8 3,315.7 5,724.0 4,622.5 4,583.5 5,055.8 5,264.5 4,228.2


IFCG Industry Price Indexes 1989−1998: (End−of−period Values in US$; End 1984=100) 132

449 Electric, Gas or Sanitary Services 459.1 480.1 620.7 672.9 1030.6 1249.0 1148.4 1255.3 1199.2 742.2

5 Wholesale/retail trade 354.8 342.3 322.8 407.8 590.8 400.8 304.4 264.2 268.5 192.2

6 Finance/insurance/real estate 242.7 165.2 143.4 138.4 245.0 233.4 204.8 226.0 167.3 140.7

660 Banking 245.3 175.0 142.8 140.5 245.7 264.0 241.7 268.2 218.0 185.6

661 Credit Agencies Other Than Banks 377.1 267.7 280.6 302.5 658.0 600.3 514.0 373.5 172.0 122.7

662 Security & Commodity Brokers 131.4 90.0 79.2 77.6 95.9 79.8 61.5 44.8 9.8 29.3

663 Insurance 168.0 76.7 80.7 59.1 143.5 167.1 131.9 167.0 142.8 115.9

7 Services 199.5 161.4 185.2 225.6 495.4 411.4 373.2 355.2 172.0 141.0

770 Hotels & Other Lodging Places 200.0 157.0 161.6 175.0 387.2 333.5 289.4 261.1 136.0 98.3

9 Other/diversified holding companies213.5 193.0 214.1 225.3 445.1 338.0 320.3 345.4 205.1 139.9

IFCG Composite Price Index 339.9 234.8 271.5 267.8 439.6 430.0 370.4 391.8 328.1 252.8

IFCG Industry Price Indexes 1989−1998:(Annual % Change in US$)


0 Agriculture/forestry/fishing 15.0 −16.9 4.6 2.0 86.4 −13.3 −16.4 10.7 −46.0 −7.0

1 Mining 61.8 −59.3 37.9 −19.0 42.6 47.1 −13.8 2.3 12.4 −51.9

110 Metal Mining 62.2 −62.0 10.3 −19.6 58.7 77.3 −23.7 −4.7 −25.9 −20.5

2 Construction 38.1 −37.1 −0.6 5.8 79.5 −11.7 −14.3 −4.7 −57.5 −20.0

215 General Building Contractors 77.5 −45.4 32.0 −2.0 73.7 −22.7 −20.6 0.9 −43.0 −27.8

3 Manufacturing 50.5 −32.1 24.4 −8.6 52.1 8.5 −20.1 4.2 −11.8 −16.0

320 Food & Kindred Products 90.5 −30.7 71.1 −1.8 66.7 −4.5 −7.0 2.2 −0.2 −15.2


IFCG Industry Price Indexes 1989−1998: (Annual % Change in US$) 133

322 Textile Mill Products 63.8 −43.5 42.0 −28.6 29.3 24.7 −35.6 12.4 −26.4 −25.9

323 Apparel & Other Textile Products 21.1 −33.3 19.3 0.3 17.5 6.9 −44.8 −2.5 −0.6 −29.7

326 Paper & Allied Products 55.2 −27.1 25.8 −16.7 31.2 44.9 −19.0 −7.5 −16.2 −31.6

328 Chemicals & Allied Products 23.9 −26.8 8.4 −6.3 40.2 11.7 −26.5 5.1 −12.3 −20.7


17.9 −42.9 19.6 −20.1 96.7 31.3 −30.1 31.2 −4.4 −37.2

330 Rubber & Misc. Plastics Products 55.0 −45.7 14.9 −11.3 62.9 6.9 −27.0 42.3 −23.9 −16.7

332 Cement & Glass Products 111.5 −29.5 36.5 −6.2 56.6 −4.9 −21.3 −3.0 −26.3 −22.4

333 Primary Metal Industries 16.8 −30.2 7.3 −4.0 46.3 15.6 −33.4 −10.0 −11.0 −11.7

334 Fabricated Metal Products 39.4 −32.8 16.6 −13.9 26.7 7.5 −26.5 −1.9 −17.3 −40.1

336 Electric & Electronic Equipment 63.6 −40.6 9.6 −12.0 65.6 23.4 −4.1 −12.5 21.9 1.5

337 Transportation Equipment 31.4 −19.2 4.3 −15.3 58.4 −16.5 −17.5 11.0 −38.0 −26.9

339 Miscellaneous Manufacturing 34.4 7.6 13.4 35.3 49.5 4.3 −20.0 10.9 4.4 0.2

4 Transportation/communication/utility57.7 −15.4 66.0 11.2 60.3 −3.9 −5.4 8.8 −3.3 −25.3

444 Water Transportation 35.1 −48.3 39.3 −2.1 45.2 −5.8 −15.2 5.6 −40.0 1.1

448 Communications 79.1 31.3 159.5 17.2 72.6 −19.2 −0.8 10.3 4.1 −19.7

449 Electric, Gas or Sanitary Services 50.6 4.6 29.3 8.4 53.2 21.2 −8.1 9.3 −4.5 −38.1

5 Wholesale/retail trade 18.8 −3.5 −5.7 26.3 44.9 −32.2 −24.1 −13.2 1.6 −28.4

6 Finance/insurance/real estate 53.9 −31.9 −13.2 −3.5 77.0 −4.8 −12.2 10.3 −26.0 −15.9

660 Banking 49.2 −28.7 −18.4 −1.6 74.9 7.5 −8.4 11.0 −18.7 −14.9

661 Credit Agencies Other Than Banks 129.1 −29.0 4.8 7.8 117.5 −8.8 −14.4 −27.3 −53.9 −28.6

662 Security &Commodity Brokers −14.6 −31.5 −12.0 −2.0 23.6 −16.8 −22.9 −27.1 −78.2 199.1

663 Insurance 116.0 −54.4 5.3 −26.7 142.7 16.5 −21.1 26.6 −14.5 −18.8

7 Services 72.2 −19.1 14.8 21.8 119.6 −16.9 −9.3 −4.8 −51.6 −18.0

770 Hotels & Other Lodging Places 73.4 −21.5 2.9 8.3 121.2 −13.9 −13.2 −9.8 −47.9 −27.7

9 Other/diversified holding companies55.1 −9.6 10.9 5.2 97.6 −24.1 −5.2 7.8 −40.6 −31.8

51.7 −30.9 15.6 −1.4 64.1 −2.2 −13.9 5.8 −16.3 −22.9


IFCG Industry Price Indexes 1989−1998: (Annual % Change in US$) 134

IFCG Composite Price Index

IFCG Industry Total Return Indexes 1998 Performance Summary:(US$; End 1984=100)

SIC Sector/industryEnd−1998

% changefromEnd−1997


1 Mining 167.8 −50.1

110 Metal Mining 117.6 −15.0

2 Construction 198.7 −19.1









236.2 −35.9







339 Miscellaneous Manufacturing 571.7 1.5

4 Transportation/communication/utility 1,939.1 −23.1


IFCG Industry Total Return Indexes 1998 Performance Summary: (US$; End 1984=100) 135



449 Electric, Gas or Sanitary Services 1,587.0 −35.4



660 Banking 266.0 −12.9



663 Insurance 187.1 −17.2

7 Services 184.4 −15.9


9 Other/diversified holding companies 194.6 −29.6

IFCG Composite Total ReturnIndex 352.2 −21.1

Performance Highlights of IFCG IndustrySector Total Return Indexes (%)


IFCG Industry Total Return Indexes 1998 Performance Summary: (US$; End 1984=100) 136

IFCG Industry Total Return Indexes 1998:(End−of−period Values in US$; End 1984=100)



1 Mining 280.5 295.8 311.8 313.2 246.4 217.0 219.6 149.3 158.3 178.2 188.8 167.8

110 Metal Mining 134.8 142.1 150.1 160.0 141.2 129.6 132.4 106.5 124.0 131.8 131.9 117.6

2 Construction 227.6 266.0 261.1 248.7 220.9 196.1 196.8 148.9 165.0 180.9 194.7 198.7


3 Manufacturing 536.5 598.5 610.7 602.3 534.2 476.8 494.0 393.5 406.9 434.7 475.8 473.6

320 Food & Kindred Products 1,067.2 1,119.8 1,184.3 1,214.6 1,105.8 1,004.3 1,041.6 798.6 829.1 884.9 940.3 957.4




328 Chemicals &Allied Products 528.8 551.3 568.9 569.8 514.3 466.1 472.0 401.5 411.6 416.5 444.8 451.8


350.4 360.6 365.5 374.5 312.5 279.7 294.6 198.1 212.7 240.7 256.1 236.2


332 Cement & Glass Products 1,053.2 1,122.7 1,206.1 1,244.3 1,112.9 1,011.4 1,025.5 796.4 817.4 878.7 929.7 925.4



336 Electric & Electronic Equipment 997.0 1,240.9 1,180.9 1,111.2 984.9 846.9 924.7 752.0 772.5 833.2 956.0 950.2



4 Transportation/communication/utility2,336.8 2,522.5 2,693.9 2,645.9 2,281.0 2,156.2 2,268.8 1,539.4 1,675.5 1,891.8 2,032.8 1,939.1


448 Communications 8,364.8 8,990.1 9,775.8 9,621.5 8,460.8 8,251.3 8,795.5 5,855.3 6,340.0 7,378.4 7,786.2 7,357.2

449 Electric, Gas or Sanitary Services 2,235.0 2,411.8 2,501.5 2,475.9 2,022.8 1,821.7 1,882.2 1,264.7 1,375.2 1,466.4 1,637.0 1,587.0


IFCG Industry Total Return Indexes 1998: (End−of−period Values in US$; End 1984=100) 137



660 Banking 294.2 328.1 336.0 336.7 308.7 278.7 291.0 215.8 221.0 244.4 266.0 266.0



663 Insurance 223.1 254.8 256.2 248.0 225.9 198.6 196.6 155.5 163.0 200.7 204.3 187.1

7 Services 218.9 248.9 258.1 251.4 217.7 174.8 173.8 136.2 146.0 154.0 169.9 184.4



IFCG Composite Total ReturnIndex 420.9 464.3 479.2 475.4 418.8 375.7 386.5 288.2 302.5 333.4 358.3 352.2

IFCG Industry Total Return Indexes 1989−1998:(End−of−Period Values in US$; End 1984=100)

SIC Industry 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


1 Mining 295.4 122.6 171.5 143.9 210.9 316.8 280.5 294.6 336.2 167.8

110 Metal Mining 219.0 85.1 95.1 80.0 130.9 237.0 185.8 182.4 138.4 117.6

2 Construction 619.5 390.3 392.0 423.1 766.7 686.1 592.6 571.1 245.6 198.7


3 Manufacturing 507.2 349.7 445.5 414.1 641.4 709.1 576.7 614.5 552.4 473.6

320 Food & Kindred Products 539.8 380.3 661.8 662.1 1,125.1 1,089.0 1,033.3 1,085.5 1,100.8 957.4


IFCG Industry Total Return Indexes 1989−1998: (End−of−Period Values in US$; End 1984=100) 138



326 Paper & Allied Products 896.6 665.3 850.2 717.9 956.2 1,401.7 1,158.0 1,092.3 930.0 656.3



248.7 144.9 178.5 145.3 290.7 388.1 276.9 375.6 368.2 236.2

330 Rubber & Misc. Plastics Products 868.6 474.8 558.5 510.3 851.7 932.4 695.3 1,012.2 783.8 660.4

332 Cement & Glass Products 1,322.7 942.9 1,310.8 1,254.3 2,010.0 1,948.7 1,564.1 1,547.5 1,160.1 925.4






4 Transportation/communication/utility904.2 779.3 1,324.3 1,498.8 2,456.4 2,402.6 2,310.2 2,555.0 2,521.5 1,939.1


448 Communications 1,233.3 1,666.8 4,391.1 5,192.4 9,200.0 7,526.6 7,563.2 8,454.8 8,952.8 7,357.2

449 Electric, Gas or Sanitary Services 774.5 825.0 1,098.8 1,234.5 1,927.7 2,395.0 2,246.2 2,502.3 2,455.4 1,587.0

5 Wholesale/retail trade 437.6 428.3 411.0 529.2 781.1 537.6 414.0 364.1 381.3 277.1


660 Banking 284.6 206.0 171.6 174.0 312.0 344.8 322.4 365.6 305.4 266.0


662 Security & Commodity Brokers 132.0 91.0 80.4 79.5 98.5 83.1 65.3 s 48.2 10.7 32.2

663 Insurance 249.6 114.3 120.6 89.1 217.9 254.3 203.4 260.6 225.9 187.1

7 Services 216.5 184.5 215.9 268.8 594.9 498.7 459.0 443.3 219.2 184.4



400.5 280.9 330.3 331.4 555.2 552.2 484.2 522.3 446.4 352.2


IFCG Industry Total Return Indexes 1989−1998: (End−of−Period Values in US$; End 1984=100) 139

IFCG Composite Total ReturnIndex

IFCG Industry Total Return Indexes 1989−1998:(Annual % Change in US$)

SIC Industry 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

0 Agriculture/forestry/fishing 19.4 −14.9 6.9 5.5 92.0 −11.9 −14.4 13.6 −44.6 −4.0

1 Mining 71.0 −58.5 39.9 −16.1 46.5 50.3 −11.5 5.0 14.1 −50.1

110 Metal Mining 68.0 −61.1 11.7 −15.8 63.6 81.0 −21.6 −1.9 −24.1 −15.0

2 Construction 39.2 −37.0 0.4 8.0 81.2 −10.5 −13.6 −3.6 −57.0 −19.1

215 General Building Contractors 78.6 −45.3 33.2 −0.5 75.3 −21.8 −20.0 1.9 −42.4 −27.1

3 Manufacturing 54.4 −31.1 27.4 −7.0 54.9 10.6 −18.7 6.6 −10.1 −14.3

320 Food & Kindred Products 94.4 −29.6 74.0 0.0 69.9 −3.2 −5.1 5.1 1.4 −13.0


323 Apparel & Other Textile Products 23.1 −32.6 21.1 1.6 20.0 8.0 −43.8 −0.7 1.1 −28.7




21.7 −41.7 23.2 −18.6 100.1 33.5 −28.7 35.7 −2.0 −35.9

330 Rubber & Misc. Plastics Products 58.2 −45.3 17.6 −8.6 66.9 9.5 −25.4 45.6 −22.6 −15.7

332 Cement & Glass Products 116.0 −28.7 39.0 −4.3 60.2 −3.0 −19.7 −1.1 −25.0 −20.2

333 Primary Metal Industries 19.5 −29.0 9.6 −2.9 48.1 17.9 −32.2 −8.2 −8.6 −8.7

334 Fabricated Metal Products 44.4 −31.2 19.1 −12.9 29.1 10.0 −25.1 −0.3 −15.8 −37.6

336 Electric & Electronic Equipment 65.9 −40.4 10.8 −10.9 67.5 25.7 −3.4 −11.6 23.1 2.1

337 Transportation Equipment 32.9 −18.2 6.5 −13.8 60.3 −14.9 −16.6 12.5 −37.0 −25.8

339 Miscellaneous Manufacturing 38.7 11.7 16.6 37.0 52.4 5.7 −18.8 13.0 5.9 1.5

4 Transportation/communication/utility66.2 −13.8 69.9 13.2 63.9 −2.2 −3.8 10.6 −1.3 −23.1

444 Water Transportation 38.3 −47.6 42.3 0.1 49.1 −4.4 −13.3 8.1 −38.9 3.0

448 Communications 88.3 35.2 163.4 18.2 77.2 −18.2 0.5 11.8 5.9 −17.8


IFCG Industry Total Return Indexes 1989−1998: (Annual % Change in US$) 140

449 Electric, Gas or Sanitary Services 74.4 6.5 33.2 12.3 56.2 24.2 −6.2 11.4 −1.9 −35.4

5 Wholesale/retail trade 21.2 −2.1 −4.0 28.7 47.6 −31.2 −23.0 −12.1 4.7 −27.3

6 Finance/insurance/real estate 55.1 −31.0 −11.8 −1.1 80.8 −2.6 −10.5 12.4 −24.4 −14.2

660 Banking 50.5 −27.6 −16.7 1.4 79.3 10.5 −6.5 13.4 −16.5 −12.9

661 Credit Agencies Other Than Banks 131.5 −27.9 5.9 9.9 121.1 −7.2 −12.4 −26.0 −53.0 −27.8

662 Security & Commodity Brokers −14.5 −31.1 −11.7 −1.2 24.0 −15.6 −21.5 −26.1 −77.9 201.7

663 Insurance 116.1 −54.2 5.6 −26.2 144.6 16.7 −20.0 28.1 −13.3 −17.2

7 Services 74.9 −14.8 17.0 24.5 121.3 −16.2 −8.0 −3.4 −50.5 −15.9

770 Hotels & Other Lodging Places 75.8 −17.3 4.4 10.5 122.4 −13.2 −12.4 −8.7 −47.1 −26.3


IFCG Composite Total ReturnIndex 54.7 −29.9 17.6 0.3 67.5 −0.5 −12.3 7.9 −14.5 −21.1

4—IFC Investable Indexes

Market Weights in the IFCI Composite Index End−1998

Market Stocks

MarketCapitalization(US$ millions)

Weight inIFCIComposite(%)

Latin America

Argentina 31 24,865 4.36

Brazil 90 60,771 10.64

Chile 40 30,348 5.32

Colombia 14 4,932 0.86

Mexico 57 61,990 10.86


4— IFC Investable Indexes 141

Peru 21 5,398 0.95

Venezuela 14 4,598 0.81

Asia

China 58 12,894 2.26

India 86 13,192 2.31

Indonesia 41 10,432 1.83

Korea 153 55,811 9.78

Malaysia 129 42,234 −

Pakistan 17 2,019 0.35

Philippines 38 10,482 1.84

Sri Lanka 5 342 0.06

Taiwan, China 106 47,875 8.39

Thailand 43 9,001 1.58

Europe

Czech Republic 13 2,966 0.52

Greece 54 40,816 7.15

Hungary 13 10,873 1.90

Poland 34 8,128 1.42

Portugal 22 31,438 5.51

Russia 13 5,075 0.89

Slovakia 5 509 0.09

Turkey 58 16,947 2.97

Mideast/Africa

Egypt 34 4,814 0.84

Israel 46 16,282 2.85

Jordan 6 1,471 0.26

Morocco 10 7,801 1.37

South Africa 67 68,672 12.03

Zimbabwe 5 197 0.03


4— IFC Investable Indexes 142

Regions

Composite 1,194 570,936 100.00

Latin America 267 192,901 33.79

Asia 547 162,048 28.38

Europe 212 116,752 20.45

ME & Africa 168 99,236 17.38

Weights in the IFCI Composite Index, End−1998

Stock Distribution by Region in theIFCI Composite Index, End−1998

Comparative Valuations of the IFCI Indexes, End−1998

Price−earnings ratio Price−book valueratio

Dividend yield

MarketEnd1998


End1997

End1998


End1997

End1998


End1997

Latin America

Argentina 13.22 0.46 16.22 1.25 0.36 1.83 4.03 2.52 2.09

Brazil 7.08 0.24 12.85 0.60 0.17 0.99 7.23 4.52 3.43

Chile 14.77 0.51 14.77 1.17 0.34 1.66 4.20 2.63 3.94

Colombia 10.41 0.36 15.89 0.73 0.21 1.18 5.56 3.48 2.94

Mexico 21.31 0.73 14.73 1.44 0.41 2.32 2.97 1.86 1.49


Comparative Valuations of the IFCI Indexes, End−1998 143

Peru 21.07 0.73 14.13 1.56 0.45 1.98 3.83 2.39 2.30

Venezuela 5.46 0.19 13.41 0.53 0.15 1.24 4.43 2.77 1.09

Asia

China 12.74 0.44 10.16 1.02 0.29 1.11 0.96 0.60 1.57

India 11.46 0.40 15.41 1.75 0.50 2.49 1.91 1.19 1.45

Indonesia 108.81 3.75 10.91 1.66 0.48 1.45 0.83 0.52 1.76

Korea −50.69 − 17.98 0.92 0.26 0.50 0.62 0.39 1.25

Malaysia 19.89 0.69 9.41 1.29 0.37 1.41 2.53 1.58 3.98

Pakistan 5.73 0.20 12.53 1.22 0.35 2.58 14.69 9.18 2.81

Philippines 15.00 0.52 10.83 1.37 0.39 1.38 0.72 0.45 1.33

Sri Lanka 8.11 0.28 17.01 1.20 0.34 1.60 2.86 1.79 1.25

Taiwan, China 21.49 0.74 29.02 2.63 0.75 3.20 0.84 0.53 0.50

Thailand −6.45 − −68.71 1.49 0.43 1.01 0.75 0.47 5.19

Europe

Czech Republic 48.17 1.66 −566.30 0.81 0.23 0.91 0.17 0.11 0.34

Greece 33.66 1.16 17.64 4.87 1.40 3.15 1.57 0.98 2.89

Hungary 17.02 0.59 27.39 3.21 0.92 4.22 1.07 0.67 0.40

Poland 10.74 0.37 11.38 1.54 0.44 1.69 1.52 0.95 1.50

Portugal 23.15 0.80 23.92 3.52 1.01 3.20 1.68 1.05 1.38

Russia 10.39 0.36 15.22 0.62 0.18 0.54 1.12 0.70 −

Slovakia 7.37 0.25 10.77 0.31 0.09 0.63 3.83 2.39 −

Turkey 7.80 0.27 20.13 2.74 0.79 6.84 4.34 2.71 1.64

Mideast/Africa

Egypt 8.64 0.30 11.21 2.74 0.79 4.06 6.75 4.22 −

Israel 13.18 0.45 14.14 1.21 0.35 1.42 1.91 1.19 1.70

Jordan 16.31 0.56 15.30 1.65 0.47 1.94 2.27 1.42 1.63

Morocco 19.52 0.67 17.10 3.37 0.97 3.46 2.03 1.27 −

South Africa 10.09 0.35 10.82 1.53 0.44 1.59 3.24 2.03 2.51

Zimbabwe 5.36 0.18 12.80 2.38 0.68 2.87 3.43 2.14 1.46


Comparative Valuations of the IFCI Indexes, End−1998 144

Regions

Composite 15.87 0.55 14.64 1.30 0.37 1.51 2.94 1.84 2.54

Latin America 11.34 0.39 14.24 0.92 0.26 1.50 4.99 3.12 2.65

Asia 51.69 1.78 15.11 1.34 0.38 1.55 0.96 0.60 2.68

Europe 17.28 0.60 18.52 2.56 0.73 1.32 2.09 1.31 1.42

ME & Africa 10.91 0.38 11.49 1.57 0.45 1.67 3.21 2.01 2.21

DevelopedMarkets

Japan 185.20 6.39 41.90 1.60 0.46 1.77 1.00 0.63 0.90

U.K. 20.40 0.70 16.80 3.83 1.10 3.43 2.50 1.56 2.80

U.S. 30.20 1.04 22.90 5.14 1.47 4.20 1.30 0.81 1.60

MSCI World 29.00 1.00 23.20 3.49 1.00 3.08 1.60 1.00 1.80

IFCI Price Indexes 1998 Performance Summary:(Ranked by 1998 % Changes in US$)

Rank Market

% change inIFCIPrice Index


2 Greece 91.2

3 Portugal 38.4

4 Thailand 34.3

5 Morocco 28.7

6 Philippines 9.2

7 Jordan 3.0

8 Malaysia −2.9


10 Hungary −10.8

11 Poland −12.3

12 Israel −16.0


14 India −23.0


IFCI Price Indexes 1998 Performance Summary: (Ranked by 1998 % Changes in US$) 145




18 Chile −29.8


20 Egypt −30.9

21 Mexico −38.9

22 Peru −39.3

23 Brazil −43.0

24 Colombia −46.8


26 China −52.6

27 Turkey −53.1

28 Slovakia −56.0

29 Zimbabwe −58.1

30 Pakistan −61.9

31 Russia −84.2


2 Europe −20.5

3 EMEA −22.6

4 Composite −24.1



7 E. Europe −58.6

Developed 1 U.S., S&P 500 26.7

2 FT, EuroPac 16.9

3 U.K., FT−SE100

15.8

4 Japan, Nikkei 4.6


IFCI Price Indexes 1998 Performance Summary: (Ranked by 1998 % Changes in US$) 146

Percent Change in IFCI Price Indexes, 1998

IFCI Price Indexes 1998 High, Low, Close:(US$; Year−end and Daily Closing Levels)


Latin America

Argentina 1,115.8 1,134.9 Mar 26 538.8 Sep 10 797.7

Brazil 482.6 537.6 Mar 23 206.8 Sep 10 275.1

Chile 642.6 646.3 Mar 17 343.2 Sep 14 451.3

Colombia 825.4 815.3 Jan 2 304.4 Oct 15 439.4

Mexico 788.2 786.2 Jan 2 342.5 Sep 10 481.6

Peru 221.4 222.6 Jan 2 127.2 Sep 22 134.4



IFCI Price Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Levels) 147

Asia

China 55.3 55.1 Jan 2 21.3 Aug 28 26.2

India 83.4 97.0 Apr 21 58.7 Nov 27 64.2


Korea 24.0 53.1 Dec 30 21.6 Jun 16 53.0

Malaysia 91.2 130.2 Feb 10 40.9 Sep 1 88.5

Pakistan 248.4 248.4 Jan 2 74.7 Oct 21 94.6

Philippines 112.8 153.2 Mar 25 62.0 Sep 11 123.1

Sri Lanka 116.3 138.7 Apr24 57.8 Sep 4 82.4

Taiwan, China 141.1 167.9 Mar 2 96.3 Sep 3 115.8

Thailand 47.0 86.3 Mar 23 31.6 Sep 3 63.2

Europe

Czech Republic 54.7 60.2 Apr 29 37.9 Oct 6 50.8

Greece 324.0 619.3 Dec 31 299.7 Jan 29 619.3

Hungary 314.7 362.5 Apr3 181.6 Sep 21 280.6

Poland 596.8 818.9 Mar 13 422.6 Oct 9 523.6

Portugal 211.1 344.5 Apr 22 215.5 Jan 2 292.0

Russia 148.7 153.8 Jan 5 10.8 Oct 5 23.5

Slovakia 99.2 99.4 Jan 2 38.7 Nov 20 43.6

Turkey 312.1 331.9 Jan 5 117.0 Oct 8 146.3

Mideast/Africa

Egypt 93.2 93.5 Jan 2 62.2 Dec 9 64.5

Israel 121.7 135.6 Jun 8 85.5 Oct 8 102.2

Jordan 210.3 238.5 Aug 17 203.3 Nov 17 216.6

Morocco 130.3 184.8 Sep 18 127.7 Jan 20 167.6


Zimbabwe 251.7 327.2 Mar 31 94.2 Oct 13 105.3

Regions



IFCI Price Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Levels) 148


Asia 107.7 134.1 Mar 2 67.8 Sep 1 107.0

EMEA 188.5 220.6 Apr 22 106.8 Oct 5 149.8

IFCI Price Indexes High and Low vs. 1997 Close

IFCI Price Indexes Regional vs. Developed Market Performance, 1998:(End−of−period Values in US$; End 1988=100)


Indexlevels

IFCIComposite 229.6 252.9 262.1 261.7 228.1 204.2 211.9 152.0 159.1 177.0 190.1 186.8

IFCI LatinAmerica

598.1 627.2 665.9 654.4 570.7 538.2 557.7 368.1 392.3 420.9 459.1 419.7

IFCI Asia 105.4 131.4 128.4 115.1 96.7 82.2 85.8 69.4 75.7 89.2 100.7 107.0

IFCI EMEA 142.2 150.5 159.2 173.8 154.9 136.2 141.0 101.3 101.1 112.4 115.1 114.3


IFCI Price Indexes Regional vs. Developed Market Performance, 1998: (End−of−period Values in US$; End 1988=100)149

U.S., S&P 500 352.9 377.8 396.7 400.3 392.7 408.2 403.5 344.7 366.2 395.6 419.0 442.6

U.K., FT−SE100

276.3 294.0 307.5 306.9 296.4 301.a3 295.7 272.1 266.5 282.0 293.6 303.0

Japan, Nikkei 54.3 55.2 51.3 49.0 46.8 47.2 47.0 41.4 40.8 48.2 50.1 50.8

FT, EuroPac 120.9 128.4 131.9 132.1 131.6 131.6 132.2 115.7 112.4 124.1 130.7 135.2

% changeIFCIComposite −6.7 10.1 3.6 −0.1 −12.8 −10.5 3.8 −28.3 4.6 11.3 7.4 −1.8

IFCI LatinAmerica

−11.7 4.9 6.2 −1.7 −12.8 −5.7 3.6 −34.0 6.6 7.3 9.1 −8.6

IFCI Asia −2.2 24.7 −2.3 −10.3 −16.0 −15.0 4.4 −19.1 9.1 17.8 12.9 6.2

IFCI EMEA −3.7 5.8 5.8 9.2 −10.9 −12.1 3.5 −28.2 −0.2 11.2 2.4 −0.8

U.S., S&P 500 1.0 7.0 5.0 0.9 −1.9 3.9 −1.2 −14.6 6.2 8.0 5.9 5.6

U.K., FT−SE100

5.6 6.4 4.6 −0.2 −3.4 1.7 −1.9 −8.0 −2.1 5.8 4.1 3.2

Japan, Nikkei 11.8 1.6 −7.0 −4.5 −4.5 0.9 −0.5 −11.9 −1.4 18.2 4.0 1.3

FT, EuroPac 4.6 6.2 2.7 0.2 −0.4 0.0 0.4 −12.5 −2.9 10.4 5.3 3.4

Note : The IFCI Composite and regional indexes do not include all markets. See base date table in introduction for details.

IFCI Regional Price Indexes vs. U.S. S&P 500, 1998:(daily; end−1997=100)

IFCI Price Indexes Regional vs. Developed Market Performance, 1989−1998:(End−of−period Values in US$; End 1988=100)


IFCI Price Indexes Regional vs. Developed Market Performance, 1989−1998: (End−of−period Values in US$; End 1988=100)150

Index 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Indexlevels IFCI Composite 155.5 147.4 200.5 202.9 355.6 307.4 275.8 295.0 246.0 186.8

IFCI LatinAmerica

164.9 174.0 406.3 415.4 650.6 580.2 471.7 538.0 677.5 419.7

IFCI Asia 150.0 118.2 129.7 149.8 290.8 249.4 232.2 252.8 107.7 107.0

IFCI EMEA 168.7 184.6 126.1 79.8 169.3 118.5 141.6 134.3 147.7 114.3

U.S., S&P 500 127.3 118.9 150.2 156.9 168.7 165.4 221.8 266.7 349.4 442.6

U.K., FT−SE 100 121.1 128.1 140.1 133.5 156.6 148.5 177.4 218.2 261.6 303.1

Japan, Nikkei 112.2 72.8 76.3 56.2 64.7 81.9 79.8 69.1 48.6 50.9

FT, EuroPac 109.5 81.6 89.9 76.3 98.4 105.4 114.2 118.3 115.6 135.2

% change IFCI Composite 55.5 −5.2 36.1 1.2 75.3 −13.6 −10.3 7.0 −16.6 −24.1

IFCI LatinAmerica

64.9 5.6 133.5 2.2 56.6 −10.8 −18.7 14.0 25.9 −38.0

IFCI Asia 50.0 −21.2 9.8 15.5 94.1 −14.2 −6.9 8.9 −57.4 −0.7

IFCI EMEA 68.7 9.4 −31.7 −36.7 112.3 −30.0 19.5 −5.2 10.0 −22.6

U.S., S&P 500 27.3 −6.6 26.3 4.5 7.6 −2.0 34.1 20.3 31.0 26.7

U.K., FT−SE 100 21.1 5.8 9.4 −4.7 17.3 −5.2 19.4 23.0 19.9 15.8

Japan, Nikkei 12.2 −35.1 4.9 −26.4 15.1 26.7 −2.6 −13.4 −29.7 4.6

FT, EuroPac 9.5 −25.5 10.1 −15.0 28.9 7.1 8.3 3.6 −2.3 16.9

Note: The IFCI Composite and regional indexes do not include all markets. See base date table in introduction fordetails.


IFCI Price Indexes Regional vs. Developed Market Performance, 1989−1998: (End−of−period Values in US$; End 1988=100)151

IFCI Regional Price Indexes vs. U.S. S&P 500, 1989−98(monthly; end−1988=100)

IFCI Price Indexes 1998:(End−of−period Values in US$)



Latin America

Argentina Dec−88 1,011.7 1,092.3 1,131.0 1,107.2 970.6 911.4 973.9 654.7 741.9 845.7 885.7 797.7

Brazil Dec−88 449.7 483.4 525.2 509.2 427.0 417.5 453.1 275.7 275.0 285.2 341.4 275.1

Chile Dec−88 547.7 599.3 637.6 603.1 548.6 504.4 529.9 387.2 399.3 431.1 503.4 451.3

Colombia Feb−91 743.6 641.7 619.1 639.4 583.5 552.3 513.8 398.3 345.3 326.9 425.8 439.4

Mexico Dec−88 666.7 683.7 719.6 734.3 636.3 595.9 586.7 390.2 442.6 487.1 460.5 481.6

Peru Dec−92 197.7 190.1 210.1 220.4 212.5 197.6 198.4 141.0 136.4 132.2 155.9 134.4

Venezuela Jan−90 765.3 743.3 768.0 592.7 601.7 458.2 459.8 273.0 366.3 344.2 371.3 453.3

Asia

China Dec−92 39.3 54.1 50.8 44.5 40.9 36.0 27.7 21.4 28.5 28.3 28.7 26.2

India Nov−92 74.2 81.9 87.5 90.3 79.9 68.8 67.8 62.4 65.7 60.0 59.1 64.2

Indonesia Sep−90 21.9 25.5 30.5 26.3 16.1 13.5 17.0 14.3 10.9 16.9 24.8 24.2

Korea Jan−92 40.8 37.7 38.0 35.1 27.1 24.1 30.9 24.8 23.6 31.0 38.5 53.0

Malaysia Dec−88 82.1 126.0 120.6 101.7 83.6 65.2 59.0 43.0 59.4 63.2 81.1 88.5

Pakistan Mar−91 229.8 231.7 212.3 211.4 132.4 98.0 93.8 96.8 109.6 78.0 105.5 94.6

Philippines Dec−88 111.0 139.1 146.1 132.8 125.5 103.0 93.6 66.7 74.7 107.2 123.9 123.1

Sri Lanka Dec−92 109.7 116.2 122.2 138.3 106.8 78.6 87.1 64.8 63.8 64.6 78.1 82.4

Taiwan, China Jan−91 135.2 167.1 156.2 140.1 127.6 115.4 121.5 101.6 107.0 119.4 127.5 115.8

Thailand Dec−88 63.9 81.8 76.5 69.9 51.5 39.8 40.9 31.7 42.7 59.1 64.7 63.2

Europe


Greece Dec−88 302.8 311.5 401.3 520.9 537.9 488.8 591.0 448.1 464.6 486.7 561.7 619.3

Hungary Dec−92 283.9 313.6 346.5 339.0 293.7 310.1 337.4 208.2 204.5 241.2 262.1 280.6


IFCI Price Indexes 1998: (End−of−period Values in US$) 152

Poland Dec−92 604.1 760.2 728.2 788.7 684.3 693.9 743.5 463.9 492.5 523.8 487.2 523.6

Portugal Dec−88 234.9 265.8 294.9 323.9 314.5 288.8 310.5 267.4 232.0 281.8 284.4 292.0

Russia Feb−97 103.2 118.0 123.4 119.5 71.8 56.5 56.8 23.5 13.6 20.3 29.4 23.5

Slovakia Feb−97 87.5 84.6 78.4 75.0 61.4 56.4 59.9 59.7 52.8 44.7 39.7 43.6

Turkey Aug−89 296.1 261.9 243.8 304.2 255.4 268.5 269.8 160.1 140.8 134.9 151.6 146.3

Mideast/Africa

Egypt Feb−97 87.4 87.3 91.2 88.6 80.6 76.1 75.0 66.0 70.6 65.8 63.6 64.5

Israel Dec−96 110.2 114.7 123.9 122.0 130.9 125.8 125.4 111.0 106.3 94.7 102.0 102.2

Jordan Dec−88 207.8 210.9 206.0 217.7 228.1 221.3 232.5 232.7 220.0 206.1 212.2 216.6

Morocco Feb−97 129.4 136.9 141.9 156.3 164.3 164.6 165.3 180.3 181.2 176.1 169.3 167.6

South Africa Dec−92 190.0 203.4 213.4 232.5 205.2 157.0 154.7 103.6 118.1 143.6 135.7 125.2

Zimbabwe Jun−93 269.4 279.2 327.2 268.8 243.7 245.1 217.3 126.0 108.1 97.7 96.8 105.3

IFCI Price Indexes 1998:(Monthly % Change in US$)


Latin America

Argentina −9.3 8.0 3.5 −2.1 −12.3 −6.1 6.9 −32.8 13.3 14.0 4.7 −9.9

Brazil −6.8 7.5 8.6 −3.1 −16.1 −2.2 8.5 −39.2 −0.2 3.7 19.7 −19.4

Chile −14.8 9.4 6.4 −5.4 −9.0 −8.1 5.0 −26.9 3.1 8.0 16.8 −10.4

Colombia −9.9 −13.7 −3.5 3.3 −8.7 −5.4 −7.0 −22.5 −13.3 −5.3 30.2 3.2

Mexico −15.4 2.6 5.3 2.0 −13.3 −6.4 −1.5 −33.5 13.4 10.0 −5.4 4.6

Peru −10.7 −3.8 10.5 4.9 −3.6 −7.0 0.4 −28.9 −3.3 −3.1 18.0 −13.8

Venezuela −16.4 −2.9 3.3 −22.8 1.5 −23.8 0.3 −40.6 34.2 −6.0 7.9 22.1

Asia

China −28.9 37.5 −6.1 −12.4 −8.1 −12.0 −22.9 −22.8 33.3 −0.7 1.4 −8.9

India −11.0 10.4 6.8 3.2 −11.5 −13.9 −1.5 −7.9 5.3 −8.7 −1.5 8.6

Indonesia −34.8 16.5 19.4 −13.6 −38.7 −16.6 26.1 −15.6 −24.3 55.9 46.5 −2.3

Korea 69.9 −7.6 0.7 −7.5 −22.9 −11.0 28.0 −19.8 −4.7 31.4 24.0 37.9

Malaysia −10.0 53.5 −4.2 −15.7 −17.8 −22.0 −9.5 −27.2 38.3 6.4 28.2 9.2


IFCI Price Indexes 1998: (Monthly % Change in US$) 153

Pakistan −7.5 0.8 −8.4 −0.4 −37.4 −26.0 −4.3 3.1 13.2 −28.8 35.3 −10.3

Philippines −1.6 25.3 5.0 −9.1 −5.5 −17.9 −9.2 −28.7 12.1 43.4 15.5 −0.6

Sri Lanka −5.7 5.9 5.2 13.2 −22.8 −26.4 10.8 −25.6 −1.5 1.3 20.8 5.5

Taiwan, China −4.2 23.6 −6.5 −10.3 −8.9 −9.6 5.3 −16.4 5.3 11.6 6.8 −9.2

Thailand 35.8 28.1 −6.6 −8.6 −26.4 −22.8 2.9 −22.5 34.8 38.2 9.5 −2.3

Europe

Czech Republic −9.1 8.6 7.7 2.9 −14.2 5.2 10.6 −30.3 3.0 15.7 −3.2 5.6

Greece −6.6 2.9 28.8 29.8 3.3 −9.1 20.9 −24.2 3.7 4.8 15.4 10.3

Hungary −9.8 10.5 10.5 −2.2 −13.4 5.6 8.8 −38.3 −1.8 17.9 8.7 7.1

Poland 1.2 25.8 −4.2 8.3 −13.2 1.4 7.1 −37.6 6.2 6.4 −7.0 7.5

Portugal 11.3 13.2 10.9 9.8 −2.9 −8.2 7.5 −13.9 −13.3 21.5 0.9 2.7

Russia −30.6 14.4 4.6 −3.1 −39.9 −21.4 0.6 −58.7 −41.9 48.5 45.3 −20.3

Slovakia −11.8 −3.3 −7.4 −4.3 −18.1 −8.2 6.2 −0.3 −11.6 −15.3 −11.4 10.0

Turkey −5.1 −11.5 −6.9 24.8 −16.1 5.1 0.5 −40.7 −12.1 −4.2 12.4 −3.5

Mideast/Africa

Egypt −6.3 −0.1 4.5 −2.9 −9.0 −5.6 −1.4 −12.0 7.0 −6.8 −3.3 1.3

Israel −9.4 4.1 8.0 −1.5 7.3 −3.9 −0.3 −11.5 −4.2 −11.0 7.7 0.2

Jordan −1.2 1.5 −2.3 5.7 4.8 −3.0 5.1 0.1 −5.5 −6.3 3.0 2.0

Morocco −0.7 5.8 3.7 10.1 5.1 0.2 0.4 9.0 0.5 −2.8 −3.9 −1.0

South Africa 5.7 7.1 4.9 9.0 −11.8 −23.5 −1.5 −33.0 14.0 21.5 −5.5 −7.7

Zimbabwe 7.1 3.6 17.2 −17.8 −9.3 0.6 −11.3 −42.0 −14.2 −9.6 −0.9 8.8

IFCI Price Indexes 1989−1998:(End−of−period Values in US$)


1989 1990 1 991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina Dec−88 257.7 146.2 791.5 579.6 994.0 734.4 800.9 950.6 1,115.8 797.7

Brazil Dec−88 118.6 34.7 125.9 125.0 232.7 384.4 305.3 396.4 482.6 275.1

Chile Dec−88 136.0 182.2 367.6 418.5 551.8 784.3 748.5 620.2 642.6 451.3


IFCI Price Indexes 1989−1998: (End−of−period Values in US$) 154

Colombia Feb−91 − − 310.9 425.2 644.7 811.6 598.1 633.1 825.4 439.4

Mexico Dec−88 225.3 278.3 582.8 676.0 1,006.4 607.9 453.2 529.7 788.2 481.6

Peru Dec−92 − − − 100.0 120.9 178.3 197.2 196.8 221.4 134.4

Venezuela Jan−90 − 684.6 1,063.8 519.6 591.9 495.0 334.4 728.0 915.0 453.3

Asia

China Dec−92 − − − 100.0 149.3 75.9 54.1 73.7 55.3 26.2

India Nov−92 − − − 93.7 116.5 123.5 80.4 78.8 83.4 64.2

Indonesia Sep−90 − 96.3 57.4 58.7 124.7 99.8 109.7 127.6 33.7 24.2

Korea Jan−92 − − − 98.2 118.2 136.8 125.9 77.3 24.0 53.0

Malaysia Dec−88 143.3 126.7 135.9 163.6 339.1 268.8 271.2 336.6 91.2 88.5

Pakistan Mar−91 − − 304.1 200.2 388.0 366.1 242.6 195.7 248.4 94.6

Philippines Dec−88 159.2 65.7 111.7 133.5 336.7 298.1 259.6 293.6 112.8 123.1

Sri Lanka Dec−92 − − − 100.0 177.2 172.0 104.1 95.1 116.3 82.4

Taiwan, China Jan−91 − − 101.9 73.8 135.2 164.6 112.8 153.3 141.1 115.8

Thailand Dec−88 198.5 145.1 171.6 230.4 477.6 383.5 375.8 221.4 47.0 63.2

Europe

Czech Republic Dec−93 − − − − 100.0 80.2 60.0 70.2 54.7 50.8

Greece Dec−88 189.3 368.6 288.6 195.3 227.7 225.7 241.6 242.4 324.0 619.3

Hungary Dec−92 − − − 100.0 166.7 151.8 98.4 196.8 314.7 280.6

Poland Dec−92 − − − 100.0 817.9 469.4 426.4 732.3 596.8 523.6

Portugal Dec−88 138.1 89.6 91.7 77.3 113.8 121.1 115.8 146.1 211.1 292.0

Russia Feb−97 − − − − − − − − 148.7 23.5

Slovakia Feb−97 − − − − − − − − 99.2 43.6

Turkey Aug−89 282.5 278.8 145.2 68.5 212.6 120.7 104.5 148.7 312.1 146.3

Mideast/Africa

Egypt Feb−97 − − − − − − − − 93.2 64.5

Israel Dec−96 − − − − − − − 100.0 121.7 102.2

Jordan Dec−88 96.0 99.4 99.9 116.8 165.6 150.0 184.7 186.7 210.3 216.6

Morocco Feb−97 − − − − − − − − 130.3 167.6

South Africa Dec−92 − − − 100.0 176.4 224.7 258.1 208.6 179.8 125.2


IFCI Price Indexes 1989−1998: (End−of−period Values in US$) 155

Zimbabwe Jun−93 − − − − 202.1 244.7 274.7 473.5 251.7 105.3

IFCI Price Indexes 1989−1998:(Annual % Change in US$)

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina 157.7 −43.3 441.5 −26.8 71.5 −26.1 9.1 18.7 17.4 −28.5

Brazil 18.6 −70.8 263.2 −0.7 86.2 65.2 −20.6 29.8 21.8 −43.0

Chile 36.0 34.0 101.8 13.9 31.8 42.1 −4.6 −17.1 3.6 −29.8

Colombia − − − 36.7 51.6 25.9 −26.3 5.9 30.4 −46.8

Mexico 125.3 23.5 109.4 16.0 48.9 −39.6 −25.5 16.9 48.8 −38.9

Peru − − − − 20.9 47.5 10.6 −0.2 12.5 −39.3

Venezuela − − −55.4 −51.2 13.9 −16.4 −32.4 117.7 25.7 −50.5

Asia

China − − − − 49.3 −49.2 −28.7 36.3 −25.0 −52.6

India − − − − 24.3 6.0 −34.9 −2.0 5.8 −23.0

Indonesia − − −40.4 2.2 112.4 −20.0 9.9 16.4 −73.6 −28.1

Korea − − − − 20.4 15.8 −7.9 −38.7 −68.9 120.7

Malaysia 43.3 −11.6 7.2 20.4 107.3 −20.7 0.9 24.1 −72.9 −2.9

Pakistan − − − −34.2 93.8 −5.6 −33.7 −19.3 26.9 −61.9

Philippines 59.2 −58.7 70.0 19.6 152.1 −11.5 −12.9 13.1 −61.6 9.2

Sri Lanka − − − − 77.2 −3.0 −39.5 −8.6 22.3 −29.2

Taiwan, China − − − −27.6 83.2 21.7 −31.5 35.9 −8.0 −17.9

Thailand 98.5 −26.9 18.2 34.2 107.3 −19.7 −2.0 −41.1 −78.8 34.3

Europe

Czech Republic − − − − − −19.8 −25.2 16.9 −22.0 −7.3

Greece 89.3 94.7 −21.7 −32.3 16.6 −0.9 7.0 0.3 33.7 91.2

Hungary − − − − 66.7 −8.9 −35.1 99.9 60.0 −10.8

Poland − − − − 717.9 −42.6 −9.2 71.8 −18.5 −12.3

Portugal 38.1 −35.2 2.3 −15.7 47.3 6.4 −4.4 26.2 44.4 38.4


IFCI Price Indexes 1989−1998: (Annual % Change in US$) 156

Russia − − − − − − − − − −84.2

Slovakia − − − − − − − − − −56.0

Turkey − −1.3 −47.9 −52.8 210.6 −43.2 −13.4 42.3 109.9 −53.1

Mideast/Africa

Egypt − − − − − − − − − −30.9

Israel − − − − − − − − 21.7 −16.0

Jordan −4.0 3.6 0.5 16.9 41.7 −9.4 23.1 1.1 12.6 3.0

Morocco − − − − − − − − − −28.7

South Africa − − − − 76.4 27.4 14.8 −19.2 −13.8 −30.3

Zimbabwe − − − − − 21.1 12.3 72.4 −46.8 −58.1

Statistics of the IFCI Price Indexes:(US$; December 1993−December 1998)

Market

Numberofmonths

Mean of%change

StandardDeviation

AnnualizedMean


CorrelationwithS&P500

Latin America

Argentina 60 0.13 9.75 1.56 33.77 0.64

Brazil 60 1.07 12.51 12.84 43.34 0.46

Chile 60 −0.01 8.08 −0.12 27.99 0.49

Colombia 60 −0.28 8.59 −3.36 29.76 0.14

Mexico 60 −0.51 11.36 −6.12 39.35 0.53

Peru 60 0.61 9.43 7.32 32.67 0.23

Venezuela 60 0.90 15.85 10.80 54.91 0.31

Asia

China 60 −2.08 12.62 −24.96 43.72 0.38

India 60 −0.67 8.14 −8.04 28.20 0.22

Indonesia 60 −1.28 16.76 −15.36 58.06 0.44

Korea 60 −0.26 15.54 −3.12 53.83 0.24

Malaysia 60 −1.28 14.04 −15.36 48.64 0.47

Pakistan 60 −1.56 12.25 −18.72 42.44 0.17


Statistics of the IFCI Price Indexes: (US$; December 1993−December 1998) 157

Philippines 60 −1.03 11.44 −12.36 39.63 0.55

Sri Lanka 60 −0.72 10.35 −8.64 35.85 0.38

Taiwan, China 60 0.13 8.99 1.56 31.14 0.38

Thailand 60 −2.32 14.26 −27.84 49.40 0.52

Europe

Czech Republic* 59 −1.56 8.77 −18.72 30.38 0.41

Greece 60 2.09 9.35 25.08 32.39 0.39

Hungary 60 1.85 14.62 22.20 50.65 0.48

Poland 60 0.35 14.77 4.20 51.16 0.39

Portugal 60 1.79 6.59 21.48 22.83 0.43

Russia* 22 −3.20 26.73 −38.40 92.60 0.57

Slovakia* 22 −3.88 7.99 −46.56 27.68 −0.25

Turkey 60 0.72 16.59 8.64 57.47 0.27

Mideast/Africa

Egypt* 22 −2.30 5.21 −27.60 18.05 0.33

Israel* 24 0.31 6.78 3.72 23.49 0.51

Jordan 60 0.52 3.70 6.24 12.82 0.12

Morocco* 22 2.12 5.21 25.44 18.05 −0.57

South Africa 60 −0.18 8.63 −2.16 29.90 0.46

Zimbabwe 60 −0.24 12.31 −2.88 42.64 0.28

Regions

Composite 60 −0.81 7.01 −9.72 24.28 0.68

Latin America 60 −0.29 9.07 −3.48 31.42 0.59

Asia 60 −1.26 8.81 −15.12 30.52 0.55

EMEA 60 −0.37 7.40 −4.44 25.63 0.52

Europe* 35 1.18 9.82 14.16 34.02 0.53

E. Europe* 35 −1.13 12.54 −13.56 43.44 0.52

ME & Africa* 35 −1.75 7.26 −21.00 25.15 0.58



DevelopedMarkets

U.S., S&P 500 60 1.70 4.00 20.40 13.86 1.00

U.K., FT−SE100

60 1.18 3.77 14.16 13.06 0.64

Japan, Nikkei 60 −0.18 6.71 −2.16 23.24 0.40

FT, EuroPac 60 0.61 4.08 7.32 14.13 0.66

Note: Statistical data based on less than 60 months of data.

IFCI Price Index Annualized Standard Deviation, 1993−1998



IFCI Price Index Annualized Mean Return, 1993−1998

IFCI Price Index Correlations:(US$ December 1993−December 1998)

Note : Correlations are for a 60−month period ending in December 1998, except as noted on page 100.

Correlations with S&P 500:(US$; December 1993−December 1998)


IFCI Price Index Correlations: (US$ December 1993−December 1998) 160

IFCI Price Index Correlations with S&P 500, 1993−1998

IFCI Total Return Indexes 1998 Performance Summary:(Ranked by 1998 % Change in US$)

Rank Market

% change inIFCI TotalReturn Index


2 Greece 95.6

3 Portugal 40.4

4 Thailand 35.4

5 Morocco 31.1

6 Philippines 10.1

7 Jordan 5.8

8 Malaysia 0.1


10 Hungary −9.9


IFCI Total Return Indexes 1998 Performance Summary: (Ranked by 1998 % Change in US$) 161

11 Poland −10.8

12 Israel −14.4


14 India −21.5


16 Egypt −27.0

17 Chile −27.2




21 Mexico −37.4

22 Peru −37.6

23 Brazil −39.5

24 Colombia −44.0


26 China −50.9

27 Turkey −51.7

28 Slovakia −54.9

29 Zimbabwe −56.8

30 Pakistan −58.3

31 Russia −84.0

Regions 1 Asia 0.8

2 Europe −19.0

3 EMEA −20.8

4 Composite −22.0



7 E. Europe −58.1


2 FT, EuroPac 19.3


IFCI Total Return Indexes 1998 Performance Summary: (Ranked by 1998 % Change in US$) 162

Note: Neither local Japanese index (Nikkei or Topix) publish atotal return index.

Percent Change in IFCI Total Return Indexes, 1998

IFCI Total Return Indexes 1998 High, Low, Close:(US$; Year−end and Daily Closing Values)


Latin America

Argentina 1,579.8 1,620.3 Mar 26 780.5 Sep 10 1,167.9

Brazil 652.3 742.3 Apr 15 291.2 Sep 10 394.7

Chile 999.9 1,010.6 Mar 17 548.2 Sep 14 727.7

Colombia 998.8 987.2 Jan 2 382.0 Oct 15 559.6

Mexico 921.4 919.1 Jan 2 406.2 Sep 10 576.7

Peru 241.1 245.1 May 4 142.0 Sep 22 150.5


IFCI Total Return Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Values) 163

Venezuela 1,093.7 1,092.1 Jan 2 311.1 Sep 10 571.5

Asia

China 62.5 62.2 Jan 2 25.0 Aug 28 30.7

India 89.0 103.8 Apr 21 63.9 Nov 27 69.9


Korea 26.3 59.2 Dec 30 24.1 Jun 16 59.1

Malaysia 111.4 159.3 Feb 10 50.9 Sep 1 111.5

Pakistan 302.9 302.9 Jan 2 97.3 Oct 21 126.4

Philippines 122.9 167.3 Mar 25 67.9 Sep 11 135.3

Sri Lanka 124.4 149.4 Apr 24 63.3 Sep 4 90.5

Taiwan, China 151.2 180.2 Mar 2 103.7 Sep 3 124.9

Thailand 60.0 110.0 Mar 23 40.6 Sep 3 81.2

Europe


Greece 529.3 1,035.4 Dec 31 489.8 Jan 29 1,035.4

Hungary 350.3 403.5 Apr 3 204.2 Sep 21 315.6

Poland 653.4 898.3 May 5 470.1 Oct 9 582.6

Portugal 269.5 442.3 Apr 22 275.1 Jan 2 378.3

Russia 148.8 153.9 Jan 5 10.9 Oct 5 23.7

Slovakia 102.7 103.0 Jan 2 41.1 Nov 20 46.3

Turkey 450.9 479.4 Jan 5 174.2 Oct 8 217.8

Mideast/Africa

Egypt 97.2 97.4 Jan 2 68.5 Dec 9 71.0

Israel 124.3 138.9 Jun 8 88.3 Oct 8 106.3

Jordan 272.7 317.6 Aug 17 265.1 Feb 16 288.4

Morocco 132.9 192.0 Sep 18 130.3 Jan 20 174.1


Zimbabwe 293.3 383.9 Mar 31 113.2 Oct 13 126.7

Regions


IFCI Total Return Indexes 1998 High, Low, Close: (US$; Year−end and Daily Closing Values) 164



Asia 129.4 161.4 Mar 2 82.4 Sep 1 130.3

Europe 200.9 236.0 Apr 22 115.9 Oct 5 162.6

Mideast/Africa 75.4 94.8 Apr 20 51.8 Aug 28 58.2

IFCI Total Return Indexes High and Low vs. 1997 Close

IFCI Total Return Indexes Regional vs. Developed Market Performance, 1998:(End−of−period Values in US$; End 1988=100)


Indexlevels

IFCIComposite 287.2 316.5 328.9 329.8 288.6 259.1 269.4 193.7 203.0 226.3 243.3 239.7

IFCI LatinAmerica

772.4 810.7 863.7 856.3 749.5 707.9 735.9 487.4 520.5 560.2 611.9 563.1


IFCI Total Return Indexes Regional vs. Developed Market Performance, 1998: (End−of−period Values in US$; End 1988=100)165

IFCI Asia 126.9 158.2 154.8 138.9 116.9 99.6 104.1 84.3 92.1 108.5 122.6 130.3

IFCI EMEA 201.0 212.9 225.8 247.0 221.4 195.3 202.5 145.6 145.6 162.2 166.3 165.3

U.S., S&P 500 497.3 533.1 560.4 566.1 556.3 578.9 572.8 490.1 521.5 563.8 598.0 632.4

FT, EuroPac 146.2 155.5 159.9 160.5 160.2 160.2 161.4 141.5 137.8 152.4 160.7 166.5

% changeIFCIComposite −6.6 10.2 3.9 0.3 −12.5 −10.2 4.0 −28.1 4.8 11.5 7.5 −1.5

IFCI LatinAmerica

−11.6 5.0 6.5 −0.9 −12.5 −5.6 4.0 −33.8 6.8 7.6 9.2 −8.0

IFCI Asia −1.9 24.7 −2.2 −10.2 −15.9 −14.8 4.5 −19.0 9.2 17.9 13.0 6.3

IFCI EMEA −3.7 5.9 6.1 9.4 −10.4 −11.8 3.7 −28.1 0.0 11.4 2.5 −0.6

U.S., S&P 500 10.6 7.2 5.1 1.0 −1.7 4.1 −1.1 −14.4 6.4 8.1 6.1 5.8

FT, EuroPac 4.8 6.4 2.8 0.4 −0.2 0.0 0.8 −12.3 −2.6 10.6 5.5 3.6

Note: The IFCI Composite and regional indexes do not include all markets. See base date table in introduction for details.

IFCI Regional Total Return Indexes vs. U.S. S&P 500, 1998:(daily; end−1997=100)

IFCI Total Return Indexes Regional vs. Developed Market Performance, 1989−1998:(End−of−Period Values in US$; End 1988=100)

Index 1989 1990 1991 1992 1 993 1994 1995 1996 1997 1998

Indexlevels

IFCIComposite 161.5 158.0 220.4 227.7 408.9 359.8 329.5 360.4 307.3 239.7

IFCI Latin 176.2 192.3 460.0 475.8 764.9 693.3 576.5 675.7 873.5 563.1


IFCI Total Return Indexes Regional vs. Developed Market Performance, 1989−1998: (End−of−Period Values in US$; End 1988=100)166

America

IFCI Asia 154.1 124.5 139.9 165.8 327.7 285.8 270.1 298.5 129.4 130.3

IFCI EMEA 175.8 200.2 141.7 95.4 212.2 154.6 189.4 185.0 208.8 165.3

U.S., S&P 500 131.6 127.5 166.2 179.0 196.8 199.4 274.1 337.2 449.6 632.4

FT, EuroPac 111.3 84.7 95.4 83.2 109.4 119.5 132.1 139.8 139.5 166.5

% changeIFCIComposite 61.5 −2.2 39.5 3.3 79.6 −12.0 −8.4 9.4 −14.7 −22.0

IFCI LatinAmerica

76.2 9.1 139.2 3.5 60.7 −9.4 −16.9 17.2 29.3 −35.5

IFCI Asia 54.1 −19.2 12.4 18.5 97.6 −12.8 −5.5 10.5 −56.6 0.7

IFCI EMEA 75.8 13.9 −29.2 −32.7 122.4 −27.1 22.5 −2.3 12.9 −20.8

U.S., S&P 500 31.6 −3.1 30.4 7.6 10.0 1.3 37.4 23.0 33.3 40.7

FT, EuroPac 11.3 −23.8 12.6 −12.8 31.5 9.2 10.6 5.8 −0.2 19.3

Note: The IFCI Composite and regional indexes do not include all markets. See base date table in introduction fordetails.

IFCI Regional Total Return Indexes vs. U.S. S&P 500, 1989−1998:(monthly; end−1988=100)

IFCI Total Return Indexes 1998:(End−of−period Values in US$)


IFCI Total Return Indexes 1998: (End−of−period Values in US$) 167



Latin America

Argentina Dec−88 1,438.7 1,559.3 1,614.8 1,587.0 1,395.3 1,310.2 1,406.2 948.3 1,074.7 1,227.5 1,290.5 1,167.9

Brazil Dec−88 609.2 655.0 716.5 706.8 593.3 580.5 633.5 388.1 387.6 405.4 485.8 394.7

Chile Dec−88 854.3 936.2 998.2 950.1 873.0 802.7 844.2 617.9 638.4 690.6 808.5 727.7

Colombia Feb−91 901.6 779.5 753.5 783.5 716.9 680.3 635.6 496.3 432.0 411.6 538.3 559.6

Mexico Dec−88 779.4 799.3 843.1 863.2 751.1 706.0 695.7 462.7 526.2 579.2 547.7 576.7

Peru Dec−92 215.3 207.4 229.9 243.0 234.5 218.0 220.9 157.5 152.3 147.6 174.4 150.5

Venezuela Jan−90 916.2 890.2 920.2 715.3 726.5 553.6 558.1 335.6 458.4 433.3 468.1 571.5

Asia

China Dec−92 44.4 61.1 57.4 50.3 46.7 41.6 32.3 25.1 33.4 33.2 33.7 30.7

India Nov−92 79.2 87.4 93.6 96.8 85.8 74.4 73.4 67.9 71.5 65.3 64.3 69.9

Indonesia Sep−90 24.3 28.3 33.8 29.2 17.9 14.9 18.9 16.0 12.1 18.9 27.7 27.0

Korea Jan−92 45.4 42.0 42.3 39.1 30.2 26.9 34.4 27.6 26.3 34.5 42.8 59.1

Malaysia Dec−88 100.4 154.2 147.8 124.8 102.9 80.6 73.1 53.5 74.2 79.3 101.7 111.5

Pakistan Mar−91 280.3 282.7 270.2 269.4 169.0 126.7 121.5 125.3 142.7 101.5 138.5 126.4

Philippines Dec−88 121.0 151.8 159.6 145.1 137.2 112.7 102.4 73.0 82.0 117.7 135.9 135.3

Sri Lanka Dec−92 117.5 124.4 131.5 149.0 115.0 86.1 95.4 71.0 69.9 70.8 85.8 90.5

Taiwan, China Jan−91 145.1 179.3 167.6 150.3 137.2 124.2 130.9 109.4 115.2 128.7 137.5 124.9

Thailand Dec−88 81.4 104.3 97.5 89.8 66.1 51.1 52.6 40.7 54.9 75.9 83.1 81.2

Europe


Greece Dec−88 494.7 509.2 657.1 858.3 892.9 815.4 988.0 749.1 776.7 813.7 939.1 1,035.4

Hungary Dec−92 315.9 349.0 385.7 377.3 328.8 348.5 379.3 234.1 230.0 271.3 294.7 315.6

Poland Dec−92 661.5 832.3 797.3 867.2 752.7 768.8 826.9 516.1 548.0 582.8 542.1 582.6

Portugal Dec−88 299.8 339.4 377.4 416.2 406.9 374.0 402.2 346.4 300.5 365.1 368.4 378.3

Russia Feb−97 103.2 118.1 123.5 119.7 72.4 57.1 57.5 23.8 13.8 20.5 29.8 23.7

Slovakia Feb−97 90.6 87.6 81.2 78.8 65.2 59.9 63.6 63.5 56.1 47.5 42.1 46.3

Turkey Aug−89 427.7 378.3 353.1 441.5 379.9 399.5 401.4 238.2 209.6 200.8 225.7 217.8


IFCI Total Return Indexes 1998: (End−of−period Values in US$) 168

Mideast/Africa

Egypt Feb−97 91.1 91.0 95.3 93.1 85.6 81.2 81.0 71.2 76.2 71.7 70.1 71.0

Israel Dec−96 112.5 117.1 126.6 124.8 134.1 129.0 129.2 114.4 109.7 97.9 105.6 106.3

Jordan Dec−88 269.6 273.6 268.7 288.8 303.8 294.7 309.7 310.0 293.0 274.5 282.6 288.4

Morocco Feb−97 132.0 139.6 144.8 159.4 167.5 168.2 171.6 187.3 188.2 183.0 175.8 174.1

South Africa Dec−92 215.7 231.4 243.9 265.9 234.7 180.6 178.0 119.6 137.1 167.2 158.2 146.6

Zimbabwe Jun−93 314.5 326.0 383.9 315.5 286.4 292.6 260.1 150.8 129.9 117.5 116.4 126.7

IFCI Total Return Indexes 1998:(Monthly % Change in US$)


Latin America

Argentina −8.9 8.4 3.6 −1.7 −12.1 −6.1 7.3 −32.6 13.3 14.2 5.1 −9.5

Brazil −6.6 7.5 9.4 −1.3 −16.1 −2.2 9.1 −38.7 −0.1 4.6 19.8 −18.7

Chile −14.6 9.6 6.6 −4.8 −8.1 −8.1 5.2 −26.8 3.3 8.2 17.1 −10.0

Colombia −9.7 −13.5 −3.3 4.0 −8.5 −5.1 −6.6 −21.9 −13.0 −4.7 30.8 3.9

Mexico −15.4 2.6 5.5 2.4 −13.0 −6.0 −1.5 −33.5 13.7 10.1 −5.5 5.3

Peru −10.7 −3.7 10.9 5.7 −3.5 −7.0 1.3 −28.7 −3.3 −3.1 18.2 −13.7

Venezuela −16.2 −2.8 3.4 −22.3 1.6 −23.8 0.8 −39.9 36.6 −5.5 8.0 22.1

Asia

China −28.9 37.6 −6.1 −12.3 −7.1 −11.1 −22.3 −22.3 33.3 −0.7 1.5 −8.9

India −11.0 10.4 7.0 3.5 −11.3 −13.3 −1.3 −7.6 5.3 −8.6 −1.5 8.6

Indonesia −34.8 16.5 19.4 −13.6 −38.6 −16.6 26.6 −15.5 −24.3 56.0 46.6 −2.3

Korea 72.5 −7.6 0.8 −7.5 −22.9 −10.9 28.0 −19.8 −4.7 31.3 24.0 37.9

Malaysia −9.9 53.6 −4.2 −15.6 −17.5 −21.7 −9.2 −26.9 38.7 6.9 28.4 9.6

Pakistan −7.5 0.9 −4.4 −0.3 −37.3 −25.0 −4.1 3.1 13.9 −28.8 36.4 −8.8

Philippines −1.6 25.4 5.1 −9.1 −5.4 −17.9 −9.2 −28.7 12.4 43.5 15.5 −0.4

Sri Lanka −5.5 5.9 5.7 13.3 −22.8 −25.1 10.8 −25.6 −1.5 1.3 21.1 5.5

Taiwan, China −4.0 23.6 −6.6 −10.3 −8.7 −9.5 5.4 −16.4 5.3 11.6 6.9 −9.1

Thailand 35.8 28.2 −6.5 −7.9 −26.4 −22.8 2.9 −22.5 34.8 38.2 9.5 −2.3


IFCI Total Return Indexes 1998: (Monthly % Change in US$) 169

Europe

Czech Republic −9.1 8.6 7.7 2.9 −14.2 5.3 10.9 −30.2 2.9 15.7 −3.2 5.6

Greece −6.5 2.9 29.0 30.6 4.0 −8.7 21.2 −24.2 3.7 4.8 15.4 10.3

Hungary −9.8 10.5 10.5 −2.2 −12.9 6.0 8.8 −38.3 −1.8 17.9 8.7 7.1

Poland 1.2 25.8 −4.2 8.8 −13.2 2.1 7.6 −37.6 6.2 6.4 −7.0 7.5

Portugal 11.3 13.2 11.2 10.3 −2.2 −8.1 7.5 −13.9 −13.3 21.5 0.9 2.7

Russia −30.6 14.4 4.6 −3.1 −39.5 −21.1 0.6 −58.7 −41.9 48.4 45.4 −20.3

Slovakia −11.8 −3.3 −7.3 −3.0 −17.2 −8.2 6.2 −0.3 −11.6 −15.3 −11.4 10.0

Turkey −5.1 −11.5 −6.7 25.0 −13.9 5.2 0.5 −40.7 −12.0 −4.2 12.4 −3.5

Mideast/Africa

Egypt −6.2 −0.1 4.7 −2.3 −8.1 −5.2 −0.2 −12.1 7.0 −5.9 −2.3 1.3

Israel −9.4 4.1 8.1 −1.4 7.5 −3.8 0.2 −11.5 −4.2 −10.8 7.9 0.7

Jordan −1.2 1.5 −1.8 7.5 5.2 −3.0 5.1 0.1 −5.5 −6.3 3.0 2.0

Morocco −0.7 5.8 3.7 10.1 5.1 0.4 2.0 9.1 0.5 −2.8 −3.9 −1.0

South Africa 5.7 7.3 5.4 9.0 −11.7 −23.1 −1.5 −32.8 14.7 21.9 −5.4 −7.3

Zimbabwe 7.2 3.7 17.7 −17.8 −9.2 2.2 −11.1 −42.0 −13.9 −9.6 −0.9 8.8

IFCI Total Return Indexes 1989−1998:(End−of−period Values in US$)


1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina Dec−88 304.6 175.2 954.6 709.3 1,257.1 951.9 1,077.1 1,315.9 1,579.8 1,167.9

Brazil Dec−88 123.1 37.6 144.6 146.1 283.7 474.5 386.1 518.5 652.3 394.7

Chile Dec−88 152.7 221.3 466.8 550.8 755.9 1,103.7 1,091.4 935.5 999.9 727.7

Colombia Feb−91 − − 324.3 454.5 703.6 901.7 680.4 742.9 998.8 559.6

Mexico Dec−88 229.8 292.3 625.3 729.9 1,106.6 679.1 513.0 607.9 921.4 576.7

Peru Dec−92 − − − 100.0 122.8 182.2 204.7 209.4 241.1 150.5

Venezuela Jan−90 − 703.5 1,103.8 544.3 639.7 547.0 381.6 859.9 1,093.7 571.5


IFCI Total Return Indexes 1989−1998: (End−of−period Values in US$) 170

Asia

China Dec−92 − − − 100.0 149.8 78.2 58.3 82.1 62.5 30.7

India Nov−92 − − − 93.8 118.2 126.4 83.5 82.9 89.0 69.9

Indonesia Sep−90 − 96.3 57.4 59.7 129.3 105.1 117.7 139.1 37.3 27.0

Korea Jan−92 − − − 99.8 121.5 144.0 132.8 82.9 26.3 59.1

Malaysia Dec−88 147.4 133.5 147.2 182.6 385.0 310.9 319.2 401.7 111.4 111.5

Pakistan Mar−91 − − 320.6 215.1 433.1 413.9 280.4 231.5 302.9 126.4

Philippines Dec−88 161.0 68.0 116.5 140.5 356.1 316.4 277.2 316.9 122.9 135.3

Sri Lanka Dec−92 − − − 100.0 179.3 175.6 108.4 100.4 124.4 90.5

Taiwan, China Jan−91 − − 102.6 75.4 139.7 171.5 118.9 163.2 151.2 124.9

Thailand Dec−88 205.8 155.6 187.6 259.8 555.6 454.7 454.4 273.4 60.0 81.2

Europe

Czech Republic Dec−93 − − − − 100.0 80.4 60.4 70.6 55.2 51.3

Greece Dec−88 205.4 421.7 341.4 253.4 311.4 322.0 360.7 384.3 529.3 1,035.4

Hungary Dec−92 − − − 100.0 174.1 160.8 106.8 216.5 350.3 315.6

Poland Dec−92 − − − 100.0 839.6 484.0 450.6 787.4 653.4 582.6

Portugal Dec−88 140.7 93.1 98.0 85.6 130.5 142.9 140.2 182.3 269.5 378.3

Russia Feb−97 − − − − − − − − 148.8 23.7

Slovakia Feb−97 − − − − − − − − 102.7 46.3

Turkey Aug−89 287.5 294.7 159.9 78.8 260.6 155.9 139.4 207.7 450.9 217.8

Mideast/Africa

Egypt Feb−97 − − − − − − − − 97.2 71.0

Israel Dec−96 − − − − − − − 100.0 124.3 106.3

Jordan Dec−88 98.6 105.6 113.4 136.1 197.9 183.5 229.1 236.5 272.7 288.4

Morocco Feb−97 − − − − − − − − 132.9 174.1

South Africa Dec−92 − − − 100.0 181.3 236.0 278.0 230.6 204.2 146.6

Zimbabwe Jun−93 − − − − 205.5 258.4 301.7 538.6 293.3 126.7

IFCI Total Return Indexes 1989−1998:(Annual % Change in US$)


IFCI Total Return Indexes 1989−1998: (Annual % Change in US$) 171

Market 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

Latin America

Argentina 204.6 −42.5 444.9 −25.7 77.2 −24.3 13.1 22.2 20.1 −26.1

Brazil 23.1 −69.5 285.1 1.0 94.2 67.3 −18.6 34.3 25.8 −39.5

Chile 52.7 44.9 110.9 18.0 37.2 46.0 −1.1 −14.3 6.9 −27.2

Colombia − − − 40.2 54.8 28.2 −24.5 9.2 34.5 −44.0

Mexico 129.8 27.2 113.9 16.7 51.6 −38.6 −24.5 18.5 51.6 −37.4

Peru − − − − 22.8 48.3 12.4 2.3 15.2 −37.6

Venezuela − − 56.9 −50.7 17.5 −14.5 −30.2 125.3 27.2 −47.7

Asia

China − − − − 49.8 −47.8 −25.5 40.9 −23.9 −50.9

India − − − − 26.1 6.9 −34.0 −0.7 7.3 −21.5

Indonesia − − −40.4 3.9 116.7 −18.7 12.0 18.2 −73.2 −27.5

Korea − − − − 21.7 18.5 −7.8 −37.6 −68.2 124.3

Malaysia 47.4 −9.4 10.3 24.1 110.9 −19.2 2.7 25.9 −72.3 0.1

Pakistan − − − −32.9 101.3 −4.4 −32.3 −17.4 30.9 −58.3

Philippines 61.0 −57.8 71.3 20.6 153.5 −11.1 −12.4 14.3 −61.2 10.1

Sri Lanka − − − − 79.3 −2.1 −38.3 −7.4 24.0 −27.3

Taiwan, China − − − −26.5 85.3 22.7 −30.7 37.3 −7.4 −17.3

Thailand 105.8 −24.4 20.6 38.5 113.8 −18.2 −0.1 −39.8 −78.1 35.4

Europe

Czech Republic − − − − − −19.6 −24.9 16.9 −21.8 −7.0

Greece 105.4 105.3 −19.0 −25.8 22.9 3.4 12.0 6.6 37.7 95.6

Hungary − − − − 74.1 −7.7 −33.6 102.6 61.8 −9.9

Poland − − − − 739.6 −42.4 −6.9 74.7 −17.0 −10.8

Portugal 40.7 −33.9 5.2 −12.6 52.5 9.5 −1.8 30.0 47.8 40.4

Russia − − − − − − − − − −84.0

Slovakia − − − − − − − − − −54.9

Turkey − −2.5 −45.8 −50.7 230.6 −40.2 −10.6 49.0 117.1 −51.7


IFCI Total Return Indexes 1989−1998: (Annual % Change in US$) 172

Mideast/Africa

Egypt − − − − − − − − − −27.0

Israel − − − − − − − − 24.3 −14.4

Jordan −1.4 7.1 7.3 20.1 45.4 −7.3 24.8 3.2 15.3 5.8

Morocco − − − − − − − − − 31.1

South Africa − − − − −81.3 30.2 17.8 −17.1 −11.5 −28.2

Zimbabwe − − − − − 25.8 16.8 78.5 −45.5 −56.8

Statistics of the IFCI Total Return Indexes:(US$; December 1993−December 1998)

MarketNumberof months

Mean of% change

StandardDeviation

Annualizedmean


Correlationwith S&P500

Latin America

Argentina 60 0.38 9.76 4.56 33.81 0.58

Brazil 60 1.34 12.51 16.08 43.34 0.42

Chile 60 0.27 8.14 3.24 28.20 0.41

Colombia 60 −0.03 8.61 −0.36 29.83 0.09

Mexico 60 −0.36 11.41 −4.32 39.53 0.46

Peru 60 0.77 9.47 9.24 32.81 0.18

Venezuela 60 1.16 15.91 13.92 55.11 0.26

Asia

China 60 −1.83 12.65 −21.96 43.82 0.28

India 60 −0.55 8.14 −6.60 28.20 0.17

Indonesia 60 −1.16 16.77 −13.92 58.09 0.35

Korea 60 −0.10 15.78 −1.20 54.66 0.40

Malaysia 60 −1.12 14.04 −13.44 48.64 0.43

Pakistan 60 −1.27 12.27 −15.24 42.50 0.16

Philippines 60 −0.97 11.44 −11.64 39.63 0.53

Sri Lanka 60 −0.59 10.35 −7.08 35.85 0.35

Taiwan, China 60 0.20 8.99 2.40 31.14 0.35

Thailand 60 −2.16 14.24 −25.92 49.33 0.60


Statistics of the IFCI Total Return Indexes: (US$; December 1993−December 1998) 173

Europe

Czech Republic* 59 −1.55 8.77 −18.60 30.38 0.35

Greece 60 2.44 9.38 29.28 32.49 0.33

Hungary 60 1.97 14.60 23.64 50.58 0.43

Poland 60 0.48 14.77 5.76 51.16 0.38

Portugal 60 2.00 6.53 24.00 22.62 0.48

Russia* 22 −3.16 26.69 −37.92 92.46 0.46

Slovakia* 22 −3.61 8.02 −43.32 27.78 −0.31

Turkey 60 1.03 16.55 12.36 57.33 0.25

Mideast/Africa

Egypt* 22 −1.87 5.14 −22.44 17.81 0.27

Israel* 24 0.48 6.81 5.76 23.59 0.38

Jordan 60 0.70 3.74 8.40 12.96 0.09

Morocco* 22 2.30 5.15 27.60 17.84 −0.59

South Africa 60 0.04 8.65 0.48 29.96 0.47

Zimbabwe 60 0.03 12.31 0.36 42.64 0.29

Regions

Composite 60 −0.62 7.02 −7.44 24.32 0.62

Latin America 60 −0.07 9.09 −0.84 31.49 0.52

Asia 60 −1.14 8.80 −13.68 30.48 0.53

EMEA 60 −0.13 7.40 −1.56 25.63 0.49

Europe* 35 1.41 9.78 16.92 33.88 0.44

E. Europe* 35 −1.04 12.51 −12.48 43.34 0.41

ME & Africa* 35 −1.52 7.29 −18.24 25.25 0.58

DevelopedMarkets

U.S., S&P 500 60 2.05 4.15 24.60 14.38 1.00

FT Europac 60 0.78 4.07 9.36 14.10 0.68


Statistics of the IFCI Total Return Indexes: (US$; December 1993−December 1998) 174

Note: Statistical data based on less than 60 months of data.

IFCI Total Return Index Annualized Standard Deviation, 1993−1998

IFCI Total Return Annualized Mean Return, 1993−1998

IFCI Total Return Index Correlations:(USS; December 1993−December 1998)


IFCI Total Return Index Correlations: (USS; December 1993−December 1998) 175

Note: Correlations are for a 60−month period ending in December 1998, except on page 112.

IFCI Total Return Index Correlations with S&P 500:(US$; December 1993−December 1998)


IFCI Total Return Index Correlations with S&P 500: (US$; December 1993−December 1998) 176

IFCI Total Return Index Correlations with S&P 500, 1993−1998

Industry Weights in the IFCI Composite Index End−1998

SIC Sector/Industry

NumberofStocks

Marketcapitalization(US$ millions)

Weight inIFCIComposite(%)

0 Agriculture/forestry/fishing 10 1,438 0.3

1 Mining 50 38,089 6.7

110 Metal Mining 30 13,133 2.3

2 Construction 48 6,674 1.2

215 General Building Contractors 28 3,835 0.7

3 Manufacturing 567 185,293 32.5

320 Food & Kindred Products 79 35,083 6.1


Industry Weights in the IFCI Composite Index End−1998 177

322 Textile Mill Products 30 3,198 0.6

323 Apparel & Other Textile Products 14 2,254 0.4

326 Paper & Allied Products 29 11,421 2.0

328 Chemicals & Allied Products 72 13,363 2.3


33 14,243 2.5

330 Rubber & Misc. Plastics Products 18 3,350 0.6

332 Cement & Glass Products 64 18,029 3.2

333 Primary Metal Industries 27 5,940 1.0

334 Fabricated metal products 30 5,239 0.9

336 Electric & Electronic Equipment 93 49,512 8.7

337 Transportation Equipment 30 4,988 0.9

339 Miscellaneous Manufacturing 16 4,297 0.8

4 Transportation/communication/utility144 130,689 22.9

444 Water Transportation 11 2,600 0.5

448 Communications 65 91,847 16.1

449 Electric, Gas or Sanitary Services 56 34,657 6.1

5 Wholesale/retail trade 56 24,037 4.2

6 Finance/insurance/real estate 236 150,434 26.3

660 Banking 125 101,550 17.8

661 Credit Agencies Other Than Banks 17 2,089 0.4

662 Security & Commodity Brokers 15 5,147 0.9

663 Insurance 22 15,829 2.8

7 Services 30 5,187 0.9

770 Hotels & Other Lodging Places 12 1,055 0.2

9 Other/diversified holding companies53 28,761 5.0

1,194 570,936 100.0


Industry Weights in the IFCI Composite Index End−1998 178

IFCI Composite Price Index

Industry Weights in the FICI Composite Index, End−1998

Stock Distribution by Industry in theIFCI Composite Index, End−1998

Industry Concentration in the IFCI Composite Index End−1998

Market

Sector withlargest share ofmarket cap

Sector'sshare ofmarket cap

Latin America

Argentina Mining 46.1

Brazil Transportation / communication/ utility

54.7

Chile Transportation / communication/ utility

46.5

Colombia Manufacturing 47.4

Mexico Transportation / communication/ utility

32.8

Peru Transportation / communication/ utility

39.5

Venezuela Transportation / communication/ utility

45.8


Industry Concentration in the IFCI Composite Index End−1998 179

Asia

China Transportation / communication/ utility

46.2

India Manufacturing 75.6

Indonesia Manufacturing 67.7

Korea Manufacturing 54.4

Pakistan Manufacturing 55.5

Philippines Finance / insurance / real estate39.3

Sri Lanka Other / diversified holdingcompanies

68.5

Taiwan, China Manufacturing 64.1

Thailand Transportation / communication/ utility

34.6

Europe

Czech Republic Transportation / communication/ utility

64.2

Greece Finance / insurance / real estate51.7

Hungary Transportation / communication/ utility

51.4

Poland Finance / insurance / real estate46.1

Portugal Manufacturing 7.5

Russia Mining 72.4

Slovakia Manufacturing 83.7

Turkey Finance / insurance / real estate58.9

Mideast/Africa

Egypt Manufacturing 61.0

Israel Manufacturing 39.1

Jordan Finance / insurance / real estate78.4

Morocco Finance / insurance / real estate80.8

South Africa Finance / insurance / real estate37.9

Zimbabwe Finance / insurance / real estate81.8

Manufacturing 32.5


Industry Concentration in the IFCI Composite Index End−1998 180

IFCIComposite

Share of Market Cap of Largest Sector, End−1998 (percent)

Industry Distribution by Market Capitalization of IFCI Composite Index, 1998:(US$ Millions; End−1998)


Industry Distribution by Market Capitalization of IFCI Composite Index, 1998: (US$ Millions; End−1998)181

Note: Figures may not add up precisely because of rounding.




Industry Distribution by Market Capitalization of IFCI Composite Index, 1998: (US$ Millions; End−1998)182


Industry Weights by Market Capitalization of IFCI Composite Index, 1998:(% of Market Capitalization; End−1998)


Industry Weights by Market Capitalization of IFCI Composite Index, 1998: (% of Market Capitalization; End−1998)183





Industry Weights by Market Capitalization of IFCI Composite Index, 1998: (% of Market Capitalization; End−1998)184


Industry Distribution by Number of Stocks in IFCI Composite Index, 1998:(End−1998)


Industry Distribution by Number of Stocks in IFCI Composite Index, 1998: (End−1998) 185




Industry Distribution by Number of Stocks in IFCI Composite Index, 1998: (End−1998) 186

IFCI Industry Price Indexes 1998 Performance Summary:(End−of−period Values in US$; End 1988=100)

SIC Sector/IndustryEnd−1998

% changefromend−1997


1 Mining 204.1 −42.2

110 Metal Mining 141.5 −20.8



IFCI Industry Price Indexes 1998 Performance Summary: (End−of−period Values in US$; End 1988=100)187









116.8 −41.5







339 Miscellaneous Manufacturing 140.9 −10.9

4 Transportation/communication/utility 659.6 −28.9



449 Electric, Gas or Sanitary Services 964.8 −41.5



660 Banking 215.4 −9.9



663 Insurance 306.0 −22.4

7 Services 144.1 −26.1



IFCI Industry Price Indexes 1998 Performance Summary: (End−of−period Values in US$; End 1988=100)188


IFCI Composite Price Index 186.8 −24.1

Performance Highlights of IFCI IndustrySector Price Indexes (%)

IFCI Industry Price Indexes 1998:(End−of−period Values in US$; End 1988=100)



1 Mining 305.2 319.2 332.9 337.1 275.7 247.9 253.4 180.5 195.8 217.0 227.4 204.1

110 Metal Mining 172.5 180.6 191.7 203.6 177.3 162.1 166.5 129.5 152.3 159.8 160.5 141.5

2 Construction 138.6 167.2 165.4 156.3 136.5 116.8 119.8 87.1 96.3 101.0 107.6 118.0


3 Manufacturing 221.0 245.8 252.2 250.5 218.7 194.6 204.2 155.6 158.3 172.2 189.1 190.3


IFCI Industry Price Indexes 1998: (End−of−period Values in US$; End 1988=100) 189







184.3 188.5 190.5 200.2 162.5 143.6 154.7 100.6 106.6 119.5 127.0 116.8








4 Transportation/communication/utility850.1 918.3 980.4 956.3 816.8 773.4 816.3 539.2 584.5 657.2 704.8 659.6


448 Communications 1249.2 1342.9 1462.6 1427.9 1257.0 1224.1 1302.6 858.2 926.6 1066.6 1123.2 1046.3

449 Electric, Gas or Sanitary Services 1495.1 1614.0 1665.5 1633.4 1308.4 1175.8 1218.1 790.1 858.9 917.9 1026.9 964.8



660 Banking 233.2 260.2 269.1 276.8 253.6 229.9 241.8 173.5 176.7 194.4 211.6 215.4



663 Insurance 402.8 475.7 483.2 472.7 424.6 349.4 345.9 251.9 267.1 326.7 331.8 306.0

7 Services 195.3 227.1 234.3 227.7 191.2 146.6 148.7 112.9 116.0 123.3 130.4 144.1



229.6 252.9 262.1 261.7 228.1 204.2 211.9 152.0 159.1 177.0 190.1 186.8


IFCI Industry Price Indexes 1998: (End−of−period Values in US$; End 1988=100) 190


IFCI Industry Price Indexes 1989−1998:(End−of−period Values in US$; End 1988=100)



1 Mining 192.3 119.3 262.9 233.8 301.3 420.4 383.2 388.2 352.9 204.1

110 Metal Mining 158.4 75.3 94.7 101.3 149.4 324.4 258.6 243.3 178.7 141.5

2 Construction 226.1 186.9 182.7 241.2 535.3 409.7 371.5 399.6 153.1 118.0


3 Manufacturing 183.3 162.1 226.0 198.5 327.9 307.7 254.4 267.1 232.4 190.3




326 Paper & Allied Products 129.9 109.5 136.6 105.1 144.5 174.4 149.0 141.9 126.2 84.3



114.1 76.6 98.0 69.3 176.0 214.4 158.1 194.3 199.9 116.8


332 Cement & Glass Products 263.6 298.8 501.2 484.2 796.5 661.7 496.3 511.8 425.5 306.9






4 Transportation/communication/utility184.8 213.8 534.8 581.1 946.8 833.5 767.0 863.3 927.2 659.6


448 Communications 202.1 266.9 754.1 863.2 1,406.7 1,089.9 1,048.8 1,184.2 1,353.5 1,046.3


IFCI Industry Price Indexes 1989−1998: (End−of−period Values in US$; End 1988=100) 191

449 Electric, Gas or Sanitary Services 190.9 392.2 917.3 701.0 1,316.2 1,655.8 1,429.2 1,596.8 1,649.3 964.8

5 Wholesale/retail trade 238.3 441.8 527.4 852.5 1,231.5 826.6 630.1 553.1 672.2 458.7


660 Banking 132.6 158.8 127.3 123.0 220.4 216.1 231.8 259.5 239.2 215.4


662 Security & Commodity Brokers − 71.8 79.9 84.3 142.4 113.2 102.9 109.8 17.2 59.8

663 Insurance − − 181.9 168.3 349.4 449.1 418.6 422.8 394.4 306.0

7 Services 157.7 164.3 198.5 265.5 630.8 519.3 482.7 452.0 195.0 144.1


9Other/diversified holdingcompanies 148.9 131.6 146.1 153.3 307.8 236.9 228.5 239.1 143.4 88.0

IFCI Composite Price Index 155.5 147.4 200.5 202.9 355.6 307.4 275.8 295.0 246.0 186.8

IFCI Industry Price Indexes 1989−1998:(Annual % Change in US$)

SIC Sector/Industry 1989 1990 199 I 1992 1993 1994 1995 1996 1997 1998

0 Agriculture/forestry/fishing −6.5 −5.9 0.3 −10.5 109.1 −5.4 −11.5 8.4 −54.4 −31.0

1 Mining 92.3 −38.0 120.5 −11.1 28.9 39.5 −8.8 1.3 −9.1 −42.2

110 Metal Mining 58.4 −52.4 25.6 7.0 47.5 117.1 −20.3 −5.9 −26.5 −20.8

2 Construction 126.1 −17.4 −2.3 32.0 121.9 −23.5 −9.3 7.5 −61.7 −22.9

215 General Building Contractors 122.4 −36.2 69.5 65.1 92.5 −31.3 −19.8 5.9 −41.6 −40.8

3 Manufacturing 83.3 −11.6 39.5 −12.2 65.2 −6.2 −17.3 5.0 −13.0 −18.1

320 Food & Kindred Products 68.2 −16.0 86.8 1.0 63.7 −11.4 −2.1 −2.5 6.5 −19.6


IFCI Industry Price Indexes 1989−1998: (Annual % Change in US$) 192

322 Textile Mill Products 91.7 −4.8 49.0 −22.0 26.4 8.9 −25.3 −1.0 −29.1 −26.8

323 Apparel & Other Textile Products 24.2 −62.6 275.3 −36.5 2.5 13.4 −53.1 −3.5 −10.1 −27.4




14.1 −32.9 28.0 −29.3 153.8 21.8 −26.3 22.9 2.8 −41.5

330 Rubber & Misc. Plastics Products 106.5 −46.6 −45.8 −4.4 66.8 −9.1 −8.2 31.4 −35.0 −21.9

332 Cement & Glass Products 163.6 13.3 67.8 −3.4 64.5 −16.9 −25.0 3.1 −16.8 −27.9

333 Primary Metal Industries 223.0 −53.9 44.8 −56.8 54.4 −5.8 −34.3 −10.5 −25.3 −24.0

334 Fabricated Metal Products 128.1 −28.1 59.5 −42.6 27.3 −0.4 −15.2 8.2 −7.1 −43.9

336 Electric & Electronic Equipment 83.5 21.5 22.3 −21.0 75.1 4.8 −12.4 −17.2 13.2 18.6

337 Transportation Equipment 183.2 28.1 −2.6 −3.5 86.8 −32.7 −18.3 34.8 −49.1 −36.0

339 Miscellaneous Manufacturing 161.9 −16.8 −23.9 −18.5 59.0 −3.6 −7.8 3.0 −19.6 −10.9

4 Transportation/communication/utility 84.8 15.7 150.2 8.7 62.9 −12.0 −8.0 12.6 7.4 −28.9

444 Water Transportation 31.5 −20.3 26.7 5.3 24.6 −16.9 −9.0 −0.7 −31.5 5.9

448 Communications 102.1 32.1 182.5 14.5 63.0 −22.5 −3.8 12.9 14.3 −22.7

449 Electric, Gas or Sanitary Services 90.9 105.5 133.9 −23.6 87.8 25.8 −13.7 11.7 3.3 −41.5

5 Wholesale/retail trade 138.3 85.4 19.4 61.7 44.5 −32.9 −23.8 −12.2 21.5 −31.8

6 Finance/insurance/real estate 35.9 6.5 −16.4 −3.9 87.4 −12.1 1.5 11.6 −22.1 −13.4

660 Banking 32.6 19.8 −19.9 −3.4 79.2 −2.0 7.3 11.9 −7.8 −9.9

661 Credit Agencies Other Than Banks 33.6 25.0 −8.2 9.1 142.2 −16.2 −5.5 −18.2 −62.2 −16.6

662 Security & Commodity Brokers − − 11.2 5.6 68.8 −20.5 −9.0 6.7 −84.3 247.2

663 Insurance − − − −7.5 107.6 28.5 −6.8 1.0 −6.7 −22.4

7 Services 57.7 4.2 20.8 33.8 137.6 −17.7 −7.0 −6.4 −56.9 −26.1

770 Hotels & Other Lodging Places 57.7 0.3 11.3 21.6 156.6 −14.5 −9.9 −13.8 −57.0 −30.9

9 Other/diversified holding companies 48.9 −11.7 11.0 5.0 100.8 −23.0 −3.6 4.6 −40.0 −38.6

55.5 −5.2 36.1 1.2 75.3 −13.6 −10.3 7.0 −16.6 −24.1


IFCI Industry Price Indexes 1989−1998: (Annual % Change in US$) 193


IFCI Industry Total Return Indexes 1998 Performance Summary:(US$; End 1988=100)

SIC Sector/industry End−1998

% changefromend−1997


1 Mining 303.4 −39.8

110 Metal Mining 212.6 −15.1










158.6 −39.9







339 Miscellaneous Manufacturing 166.7 −9.5

4 Transportation/communication/utility817.8 −26.7


IFCI Industry Total Return Indexes 1998 Performance Summary: (US$; End 1988=100) 194



449 Electric, Gas or Sanitary Services 1,570.7 −38.8



660 Banking 307.9 −7.7



663 Insurance 341.1 −20.6

7 Services 184.4 −24.1



IFCI Composite Total Return Index 239.7 −22.0

Performance Highlights of IFCI IndustrySector Total Return indexes (%)


IFCI Industry Total Return Indexes 1998 Performance Summary: (US$; End 1988=100) 195

IFCI Industry Total Return Indexes 1998:(End−of−period Values in US$; End 1988=100)



1 Mining 436.7 457.9 479.0 488.2 400.6 360.6 369.0 265.4 289.0 321.4 337.5 303.4

110 Metal Mining 243.4 256.2 272.2 293.2 255.7 233.9 240.2 190.8 225.3 238.6 240.1 212.6

2 Construction 154.7 186.6 184.6 174.8 152.6 131.2 134.9 98.1 108.5 113.9 121.3 133.3


3 Manufacturing 276.2 307.2 316.0 314.8 275.6 246.1 258.9 197.7 201.3 219.3 241.1 243.2







243.6 249.1 254.9 268.3 218.1 192.7 208.2 135.5 143.6 161.9 172.2 158.6








4 Transportation/communication/utility1,023.3 1,106.3 1,185.1 1,166.2 999.9 948.6 1,003.1 664.4 721.0 811.7 871.2 817.8


448 Communications 1,444.8 1,554.5 1,697.8 1,671.5 1,475.3 1,440.1 1,534.7 1,012.1 1,094.4 1,259.8 1,327.0 1,239.3

449 Electric, Gas or Sanitary Services 2,331.0 2,518.8 2,611.0 2,586.8 2,085.0 1,875.7 1,948.0 1,271.7 1,383.1 1,484.8 1,664.6 1,570.7


IFCI Industry Total Return Indexes 1998: (End−of−period Values in US$; End 1988=100) 196



660 Banking 325.6 363.4 377.2 388.9 358.1 325.4 343.1 246.5 251.2 276.8 301.7 307.9



663 Insurance 438.7 518.1 528.8 517.7 466.7 384.3 380.8 277.5 296.0 363.1 368.9 341.1

7 Services 243.6 283.3 292.8 284.7 240.0 185.5 189.2 143.9 148.5 157.7 166.8 184.4



IFCI Composite Total ReturnIndex 287.2 316.5 328.9 329.8 288.6 259.1 269.4 193.7 203.0 226.3 243.3 239.7

IFCI Industry Total Return Indexes 1989−1998:(End−of−Period Values in US$; End 1988=100)



1 Mining 217.7 141.8 323.0 293.0 388.9 554.0 519.9 541.7 503.8 303.4

110 Metal Mining 163.0 84.4 112.3 123.9 189.1 418.1 342.1 332.0 250.4 212.6

2 Construction 229.3 191.0 187.4 255.8 572.7 441.9 404.1 439.3 170.8 133.3


3 Manufacturing 189.9 173.1 246.9 220.8 372.9 357.3 302.8 326.5 290.1 243.2



IFCI Industry Total Return Indexes 1989−1998: (End−of−Period Values in US$; End 1988=100) 197



326 Paper & Allied Products 133.3 114.9 146.6 114.5 159.7 195.7 171.7 167.0 151.1 104.2



120.0 83.7 110.9 79.7 207.0 256.4 194.3 249.2 264.0 158.6


332 Cement & Glass Products 268.6 310.5 529.5 519.3 874.4 738.4 566.1 596.2 504.2 374.7






4 Transportation/communication/utility190.7 226.3 577.6 633.0 1,057.7 944.7 884.8 1,015.3 1,115.5 817.8


448 Communications 206.6 276.9 790.8 911.0 1,524.2 1,198.6 1,171.4 1,345.0 1,565.5 1,239.3

449 Electric, Gas or Sanitary Services 226.1 497.9 1,240.1 968.9 1,862.6 2,380.6 2,102.9 2,409.0 2,567.6 1,570.7

5 Wholesale/retail trade 245.2 474.5 577.9 952.5 1,401.3 950.2 733.5 651.0 816.2 565.1


660 Banking 137.3 171.6 143.2 148.0 274.6 277.8 306.8 352.6 333.8 307.9


662 Security & Commodity Brokers − 72.9 82.3 87.4 149.0 120.3 112.3 121.7 19.6 68.5

663 Insurance − − 183.8 171.5 359.0 463.6 439.8 452.1 429.6 341.1

7 Services 161.8 182.0 224.9 307.9 736.4 611.4 576.7 548.5 242.9 184.4



161.5 158.0 220.4 227.7 408.9 359.8 329.5 360.4 307.3 239.7


IFCI Industry Total Return Indexes 1989−1998: (End−of−Period Values in US$; End 1988=100) 198

IFCI Composite Total ReturnIndex

IFCI Industry Total Return Indexes 1989−1998:(Annual % Change in US$)


0 Agriculture/forestry/fishing −1.6 −2.6 2.6 −6.2 116.7 −3.7 −9.5 11.5 −53.1 −28.4

1 Mining 117.7 −34.9 127.8 −9.3 32.7 42.5 −6.1 4.2 −7.0 −39.8

110 Metal Mining 63.0 −48.2 33.0 10.4 52.6 121.1 −18.2 −3.0 −24.6 −15.1

2 Construction 129.3 −16.7 −1.8 36.5 123.9 −22.8 −8.5 8.7 −61.1 −22.0

215 General Building Contractors 125.6 −36.2 71.2 68.0 94.0 −30.8 −19.2 6.9 −40.9 −40.2

3 Manufacturing 89.9 −8.9 42.7 −10.6 68.9 −4.2 −15.3 7.8 −11.2 −16.2

320 Food & Kindred Products 74.7 −15.3 90.4 3.0 67.1 −10.2 0.0 0.3 8.2 −17.6


323 Apparel & Other Textile Products 27.1 −62.6 284.7 −36.0 4.2 14.7 −52.0 −1.8 −8.6 −26.4




20.0 −30.2 32.4 −28.1 159.6 23.9 −24.2 28.2 5.9 −39.9

330 Rubber & Misc. Plastics Products 113.9 −45.1 −44.8 −3.0 71.9 −5.4 −5.7 34.8 −33.5 −20.2

332 Cement & Glass Products 168.6 15.6 70.5 −1.9 68.4 −15.6 −23.3 5.3 −15.4 −25.7

333 Primary Metal Industries 226.1 −52.0 50.4 −55.3 59.5 −4.5 −32.0 −7.4 −22.8 −20.6

334 Fabricated Metal Products 144.5 −24.1 64.0 −41.9 30.4 2.0 −13.1 10.2 −5.4 −41.1

336 Electric & Electronic Equipment 89.4 24.7 24.4 −18.9 77.5 7.9 −11.1 −16.2 14.4 19.3

337 Transportation Equipment 187.1 30.1 0.2 −1.9 90.2 −31.1 −17.0 36.6 −48.2 −34.8

339 Miscellaneous Manufacturing 165.0 −13.3 −22.7 −17.5 61.6 −2.5 −6.5 4.7 −18.4 −9.5

4 Transportation/communication/utility90.7 18.7 155.2 9.6 67.1 −10.7 −6.3 14.7 9.9 −26.7

444 Water Transportation 33.7 −18.1 29.7 7.2 27.8 −15.0 −6.7 1.9 −30.3 7.1


IFCI Industry Total Return Indexes 1989−1998: (Annual % Change in US$) 199

448 Communications 106.6 34.0 185.6 15.2 67.3 −21.4 −2.3 14.8 16.4 −20.8

449 Electric, Gas or Sanitary Services 126.1 120.2 149.1 −21.9 92.2 27.8 −11.7 14.6 6.6 −38.8

5 Wholesale/retail trade 145.2 93.5 21.8 64.8 47.1 −32.2 −22.8 −11.3 25.4 −30.8

6 Finance/insurance/real estate 41.0 10.7 −13.4 1.2 92.8 −9.8 4.0 14.1 −20.3 −11.5

660 Banking 37.3 25.1 −16.5 3.3 85.6 1.2 10.4 14.9 −5.3 −7.7

661 Credit Agencies Other Than Banks 43.3 31.5 −5.7 11.9 148.1 −14.3 −3.0 −16.5 −61.4 −15.3

662 Security & Commodity Brokers − − 12.9 6.2 70.5 −19.3 −6.7 8.4 −83.9 250.2

663 Insurance − − − −6.7 109.3 29.1 −5.1 2.8 −5.0 −20.6

7 Services 61.8 12.4 23.6 36.9 139.2 −17.0 −5.7 −4.9 −55.7 −24.1

770 Hotels & Other Lodging Places 61.8 8.4 13.2 24.1 157.2 −14.0 −9.1 −12.8 −56.3 −29.6


IFCI Composite Total ReturnIndex 61.5 −2.2 39.5 3.3 79.6 −12.0 −8.4 9.4 −14.7 −22.0

5—IFC Frontier Indexes

Market Weights in the IFCG Frontier Composite Index End−1998

MarketNumberof Stocks

IFCG MarketCapitalization(US$ millions)

Weight inFrontierComposite(%)

Bangladesh 49 591.3 3.56

Botswana 7 453.9 2.73

Bulgaria 10 114.0 0.69

Cote d'Ivoire 12 1,247.8 7.52

Croatia 8 1,621.4 9.77

Ecuador 12 935.9 5.64


5— IFC Frontier Indexes 200

Estonia 10 480.2 2.89

Ghana 8 1,039.1 6.26

Jamaica 19 1,169.8 7.05

Kenya 17 1,451.2 8.74

Latvia 14 97.3 0.59

Lithuania 27 271.3 1.63

Mauritius 13 1,208.5 7.28

Romania 42 295.5 1.78

Slovenia 14 1,733.2 10.44

Trinidad & Tobago 11 2,637.6 15.89

Tunisia 13 1,088.5 6.56

Ukraine 16 160.6 0.97

IFCG FrontierComposite 302 16,597.0 100.00

Weights in the IFCG Frontier Composite Index, End−1998

IFCG Frontier Price Indexes 1998 Performance Summary:(Ranked by 1998 % Change in US$)

Rank Market

% Change inIFCG PriceIndex

1 Slovenia 19.0

2 Trinidad &Tobago

17.5

3 Ghana 17.3

4 Kenya 13.8

5 Botswana 9.2


IFCG Frontier Price Indexes 1998 Performance Summary: (Ranked by 1998 % Change in US$) 201

6 Cote d'Ivoire 4.4

7 Mauritius 1.4

8 Tunisia −6.4

9 Jamaica −21.3

10 Bulgaria −30.1

11 Croatia −33.8

12 Ecuador −36.9

13 Bangladesh −38.5

14 Lithuania −39.2

15 Estonia −65.4

16 Latvia −67.4

17 Romania −67.7

18 Ukraine −82.3

IFCG Frontier Composite −17.2

Percent Change in the IFCG Frontier Price Indexes, 1998


IFCG Frontier Price Indexes 1998 Performance Summary: (Ranked by 1998 % Change in US$) 202

IFCG Frontier Price Indexes 1998:(US$)

End−of−month levels


Bangladesh 93.8 86.0 78.0 68.3 75.5 80.0 75.9 67.1 68.5 66.4 61.7 58.9

Botswana 161.0 167.2 180.2 198.9 204.8 187.4 174.0 167.3 176.9 176.9 183.5 173.9

Bulgaria 4.9 4.9 4.9 5.0 5.0 4.9 5.0 5.0 5.3 5.4 5.2 3.5

Cote d'Ivoire 90.6 95.3 91.1 100.8 100.5 102.7 98.9 99.7 120.4 120.2 96.5 98.3

Croatia 89.8 99.1 98.0 88.7 77.5 77.4 75.1 43.5 51.6 56.1 64.4 66.2

Ecuador 76.3 78.9 71.2 65.8 67.6 63.1 64.1 63.5 55.7 50.2 51.8 48.9

Estonia 100.1 87.6 96.2 88.9 61.6 48.2 51.5 57.9 39.9 37.6 39.3 34.6

Ghana 53.9 58.6 65.1 71.5 68.5 64.8 60.3 63.6 57.5 57.4 59.5 62.4

Jamaica 145.0 142.3 141.9 138.5 133.4 138.2 137.0 138.1 120.2 111.6 108.6 118.0

Kenya 89.3 89.8 86.4 79.2 79.6 85.6 84.0 82.7 79.8 79.2 76.8 91.3

Latvia 93.2 94.4 87.3 82.2 70.5 59.4 59.7 36.2 34.3 27.3 30.6 32.6

Lithuania 186.6 181.3 204.6 204.9 185.2 170.7 155.8 130.1 108.8 104.6 111.7 120.3

Mauritius 99.8 102.8 104.0 110.6 110.5 109.7 126.3 120.2 98.0 96.0 96.0 99.4

Romania 90.4 103.4 101.0 106.7 89.7 80.7 72.5 43.5 33.9 33.0 38.4 32.3

Slovenia 111.4 117.5 133.6 139.4 140.5 137.7 156.0 139.8 141.8 133.8 128.9 133.3

Trinidad & Tobago 241.7 247.2 255.5 263.7 264.7 271.9 278.9 290.1 286.0 287.9 279.4 272.7

Tunisia 49.9 51.0 50.4 50.6 48.6 45.4 45.0 45.8 47.4 47.4 46.0 46.4

Ukraine 82.4 71.4 73.7 65.4 54.0 40.4 39.8 31.3 18.8 17.3 17.5 17.8

IFCG FrontierComposite 92.5 94.1 95.3 94.4 90.3 88.2 88.9 83.2 79.3 77.6 76.7 77.8

% change in index


−2.0 −8.3 −9.3 −12.4 10.5 5.9 −5.1 −11.5 2.0 −3.1 −7.1 −4.5


IFCG Frontier Price Indexes 1998: (US$) 203

Bangladesh

Botswana 1.1 3.9 7.7 10.4 2.9 −8.5 −7.2 −3.9 5.7 0.0 3.7 −5.3

Bulgaria −2.0 −0.6 −0.8 2.3 0.6 −1.4 2.2 −1.2 7.0 1.5 −3.1 −32.9

Cote d'Ivoire −3.7 5.1 −4.4 10.6 −0.3 2.2 −3.7 0.8 20.7 −0.1 −19.7 1.8

Croatia −10.2 10.4 −1.1 −9.5 −12.6 −0.1 −3.0 −42.2 18.8 8.7 14.8 2.8

Ecuador −1.5 3.5 −9.9 −7.6 2.7 −6.6 1.6 −0.9 −12.3 −9.8 3.1 −5.7

Estonia 0.1 −12.5 9.9 −7.7 −30.7 −21.8 7.0 12.3 −31.0 −5.8 4.5 −12.1

Ghana 1.4 8.8 11.1 9.8 −4.3 −5.4 −7.0 5.4 −9.5 −0.2 3.7 4.8

Jamaica −3.3 −1.8 −0.3 −2.4 −3.7 3.6 −0.8 0.8 −13.0 −7.1 −2.7 8.7

Kenya 11.3 0.5 −3.7 −8.4 0.5 7.5 −1.9 −1.5 −3.4 −0.8 −3.0 19.0

Latvia −6.8 1.3 −7.5 −5.8 −14.2 −15.8 0.5 −39.3 −5.4 −20.4 12.1 6.7

Lithuania −5.6 −2.9 12.9 0.2 −9.6 −7.9 −8.7 −16.5 −16.3 −3.9 6.8 7.7

Mauritius 1.8 2.9 1.2 6.3 −0.1 −0.7 15.2 −4.8 −18.4 −2.1 0.1 3.6

Romania −9.6 14.4 −2.3 5.6 −15.9 −10.0 −10.2 −39.9 −22.2 −2.6 16.6 −16.1

Slovenia −0.6 5.5 13.8 4.3 0.7 −2.0 13.3 −10.4 1.4 −5.6 −3.7 3.4

Trinidad & Tobago 4.2 2.3 3.3 3.2 0.4 2.7 2.6 4.0 −1.4 0.7 −3.0 −2.4

Tunisia 0.6 2.2 −1.1 0.3 −4.0 −6.5 −0.9 1.8 3.5 0.0 −3.1 0.9

Ukraine −17.6 −13.4 3.3 −11.3 −17.4 −25.1 −1.6 −21.4 −39.9 −7.8 0.9 1.4

IFCG FrontierComposite −1.6 1.7 1.2 −0.9 −4.3 −2.4 0.9 −6.5 −4.7 −2.1 −1.2 1.4

IFCG Frontier Price Indexes 1995−1998:(US$)

End−of−year levels

Market 1995 1996 1997 1998

Bangladesh 100.0 296.0 95.7 58.9

Botswana 100.0 79.7 159.3 173.9

Bulgaria 100.0 17.0 5.0 3.5

Cote d'Ivoire 100.0 105.3 94.1 98.3

Croatia − − 100.0 66.2


IFCG Frontier Price Indexes 1995−1998: (US$) 204

Ecuador 100.0 84.8 77.4 48.9

Estonia − − 100.0 34.6

Ghana 100.0 78.6 53.2 62.4

Jamaica 100.0 139.8 149.8 118.0

Kenya 100.0 90.1 80.3 91.3

Latvia − − 100.0 32.6

Lithuania 100.0 182.0 197.8 120.3

Mauritius 100.0 93.2 98.1 99.4

Romania − − 100.0 32.3

Slovenia 100.0 102.6 112.0 133.3

Trinidad & Tobago 100.0 110.9 232.0 272.7

Tunisia 100.0 93.5 49.6 46.4

Ukraine − − 100.0 17.8

IFCG FrontierComposite 100.0 113.0 94.0 77.8

% change in index

Market 1995 1996 1997 1998

Bangladesh − 196.0 −67.7 −38.5

Botswana − −20.3 99.8 9.2

Bulgaria − −83.0 −70.5 −30.1

Cote d'Ivoire − 5.3 −10.6 4.4

Croatia − − − −33.8

Ecuador − −15.2 −8.7 −36.9

Estonia − − − −65.4

Ghana − −21.4 −32.4 17.3

Jamaica − 39.8 7.2 −21.3

Kenya − −9.9 −11.0 13.8

Latvia − − − −67.4

Lithuania − 82.0 8.7 −39.2


IFCG Frontier Price Indexes 1995−1998: (US$) 205

Mauritius − −6.9 5.3 1.4

Romania − − − −67.7

Slovenia − 2.6 9.2 19.0

Trinidad & Tobago − 10.9 109.3 17.5

Tunisia − −6.5 −47.0 −6.4

Ukraine − − − −82.3

IFCG FrontierComposite − 13.0 −16.8 −17.2

IFCG Frontier Total Return Indexes 1998:(US$)

End−of−month levels


Bangladesh 99.5 91.2 82.9 72.9 81.2 86.0 81.9 72.7 74.5 72.2 67.1 64.3

Botswana 184.1 191.2 206.6 232.2 239.0 219.5 203.7 197.4 209.0 210.3 219.2 207.9

Bulgaria 4.9 4.9 4.9 5.0 5.0 4.9 5.0 5.0 5.3 5.4 5.2 3.5

Cote d'Ivoire 95.3 100.2 95.8 109.5 107.6 113.6 110.4 111.3 134.3 134.1 107.7 109.7

Croatia 89.8 99.1 98.0 88.8 77.6 78.2 75.9 43.9 52.1 58.5 66.1 68.6

Ecuador 87.5 91.5 86.9 80.3 82.6 77.2 79.6 78.9 69.2 62.5 64.4 60.8

Estonia 100.1 87.6 96.2 89.1 62.5 49.0 52.4 58.9 40.6 38.3 40.0 35.2

Ghana 57.3 62.3 70.6 77.6 74.6 70.6 65.7 71.0 64.3 64.4 69.8 73.2

Jamaica 156.4 154.4 154.0 151.4 146.8 152.1 151.1 153.3 134.2 124.7 122.5 134.5

Kenya 109.4 110.0 108.1 99.6 100.6 108.5 106.6 106.4 103.3 102.5 99.8 118.9

Latvia 93.2 94.4 87.3 83.9 72.8 61.4 61.7 37.4 35.4 28.2 31.6 33.7

Lithuania 193.1 187.6 211.7 212.0 191.7 176.6 161.3 134.6 112.7 108.3 115.6 124.5

Mauritius 107.0 110.2 112.1 119.8 120.1 119.6 138.2 131.5 107.6 105.9 106.2 110.4

Romania 90.4 103.4 102.2 107.8 90.7 81.6 73.3 44.0 34.2 33.3 38.9 32.6

Slovenia 119.1 125.7 143.0 149.2 150.4 147.8 167.5 150.0 152.2 143.6 138.3 143.1

Trinidad & Tobago 318.2 346.3 358.5 372.4 375.9 387.9 397.9 415.6 410.5 414.2 403.1 393.5

Tunisia 51.8 53.0 52.7 52.9 51.5 48.8 48.5 49.5 51.3 51.3 49.7 50.2


IFCG Frontier Total Return Indexes 1998: (US$) 206

Ukraine 82.4 71.4 73.7 65.4 54.0 40.4 39.8 31.3 18.8 17.3 17.5 17.8

IFCG FrontierComposite 103.8 106.6 108.7 108.1 103.9 101.9 103.0 96.7 92.4 90.8 90.1 91.6

% change in index


Bangladesh −1.9 −8.3 −9.2 −12.0 11.4 6.0 −4.8 −11.2 2.4 −3.0 −7.1 −4.2

Botswana 1.3 3.9 8.0 12.4 2.9 −8.2 −7.2 −3.1 5.9 0.6 4.2 −5.2

Bulgaria −1.8 −0.6 −0.8 2.3 0.6 −1.4 2.2 −1.2 7.0 1.5 −3.1 −33.0

Cote d'Ivoire −3.7 5.1 −4.4 14.3 −1.7 5.5 −2.8 0.8 20.7 −0.1 −19.7 1.8

Croatia −10.2 10.4 −1.1 −9.5 −12.6 0.8 −3.0 −42.2 18.8 12.2 13.0 3.9

Ecuador −1.5 4.6 −5.0 −7.6 2.9 −6.6 3.1 −0.9 −12.3 −9.7 3.1 −5.6

Estonia 0.1 −12.5 9.9 −7.4 −29.8 −21.6 7.0 12.3 −31.0 −5.8 4.5 −12.0

Ghana 1.4 8.8 13.3 9.9 −3.9 −5.3 −7.0 8.1 −9.4 0.0 8.4 5.0

Jamaica −3.2 −1.3 −0.2 −1.7 −3.1 3.6 −0.7 1.5 −12.5 −7.1 −1.7 9.8

Kenya 11.3 0.5 −1.8 −7.8 1.0 7.8 −1.8 −0.1 −2.9 −0.8 −2.6 19.2

Latvia −6.8 1.3 −7.5 −3.8 −13.3 −15.7 0.5 −39.3 −5.3 −20.4 12.1 6.7

Lithuania −5.6 −2.9 12.9 0.2 −9.6 −7.9 −8.7 −16.5 −16.3 −3.9 6.8 7.7

Mauritius 1.9 2.9 1.7 6.9 0.2 −0.4 15.5 −4.8 −18.2 −1.6 0.3 3.9

Romania −9.6 14.4 −1.2 5.5 −15.9 −10.0 −10.2 −39.9 −22.3 −2.6 16.6 −16.1

Slovenia −0.6 5.5 13.8 4.4 0.8 −1.7 13.3 −10.4 1.4 −5.6 −3.7 3.4

Trinidad & Tobago 16.1 8.8 3.5 3.9 0.9 3.2 2.6 4.4 −1.2 0.9 −2.7 −2.4

Tunisia 0.6 2.2 −0.6 0.5 −2.6 −5.4 −0.6 2.2 3.5 0.0 −3.1 0.9

Ukraine −17.6 −13.4 3.3 −11.3 −17.4 −25.1 −1.6 −21.4 −39.9 −7.8 0.9 1.4

IFCG FrontierComposite −0.2 2.7 2.0 −0.5 −3.9 −1.9 1.1 −6.1 −4.5 −1.7 −0.8 1.7

IFCG Frontier Total Return Indexes 1995−1998:(US$)


IFCG Frontier Total Return Indexes 1995−1998: (US$) 207

End−of−year levels

Market 1995 1996 1997 1998

Bangladesh 100.0 303.6 101.4 64.3

Botswana 100.0 86.4 181.7 207.9

Bulgaria 100.0 17.0 5.0 3.5

Cote d'Ivoire 100.0 110.7 99.0 109.7

Croatia − − 100.0 68.6

Ecuador 100.0 91.7 88.8 60.8

Estonia − − 100.0 35.2

Ghana 100.0 81.1 56.5 73.2

Jamaica 100.0 145.2 161.5 134.5

Kenya 100.0 99.6 98.3 118.9

Latvia − − 100.0 33.7

Lithuania 100.0 186.5 204.7 124.5

Mauritius 100.0 96.5 105.1 110.4

Romania − − 100.0 32.6

Slovenia 100.0 107.0 119.9 143.1

Trinidad & Tobago 100.0 115.5 274.0 393.5

Tunisia 100.0 95.5 51.5 50.2

Ukraine − − 100.0 17.8

IFCG FrontierComposite 100.0 118.2 103.9 91.6

% change in index

Market 1995 1996 1997 1998

Bangladesh − 203.6 −66.6 −36.6

Botswana − −13.6 110.2 14.4


IFCG Frontier Total Return Indexes 1995−1998: (US$) 208

Bulgaria − −83.0 −70.5 −30.1

Cote d'Ivoire − 10.7 −10.6 10.8

Croatia − − − −31.4

Ecuador − −8.3 −3.2 −31.5

Estonia − − − −64.8

Ghana − −18.9 −30.3 29.6

Jamaica − 45.2 11.2 −16.7

Kenya − −0.4 −1.3 21.0

Latvia − − − −66.3

Lithuania − 86.5 9.7 −39.2

Mauritius − −3.5 8.9 5.0

Romania − − − −67.4

Slovenia − 7.0 12.1 19.4

Trinidad & Tobago − −15.5 137.3 43.6

Tunisia − −4.5 −46.1 −2.6

Ukraine − − − −82.3

IFCG FrontierComposite − 18.2 −12.1 −11.9

Comparative Valuations of the IFCG Frontier Indexes End−1998

Price−earnings ratio Price−book value ratio Dividend yield

MarketEnd1998


End1997

End1998


End1997

End1998


End1997

Bangladesh 9.12 0.31 13.51 1.44 0.41 2.14 3.66 2.29 4.29

Botswana 10.93 0.38 11.82 2.97 0.85 3.51 4.66 2.91 5.57

Bulgaria 15.08 0.52 −12.14 0.39 0.11 0.89 − − −

Cote d'Ivoire 8.47 0.29 8.77 2.78 0.80 2.88 4.49 2.81 −

Croatia 11.12 0.38 25.91 1.27 0.36 1.84 2.84 1.78 −

Ecuador 6.60 0.23 14.84 1.20 0.34 1.77 10.21 6.38 4.86

Estonia 25.95 0.89 11.95 0.97 0.28 2.87 2.61 1.63 −


Comparative Valuations of the IFCG Frontier Indexes End−1998 209

Ghana 10.52 0.36 11.39 2.01 0.58 2.08 9.56 5.98 3.44

Jamaica 5.64 0.19 8.78 0.79 0.23 1.12 6.12 3.83 3.82

Kenya 8.14 0.28 7.95 1.65 0.47 1.51 5.94 3.71 10.51

Latvia 7.07 0.24 17.37 0.44 0.13 1.70 7.11 4.44 −

Lithuania 5.70 0.20 7.96 0.61 0.17 1.01 − − 0.80

Mauritius 11.58 0.40 12.82 1.47 0.42 1.26 3.46 2.16 2.71

Romania −19.45 −0.67 106.23 0.50 0.14 1.42 2.30 1.44 −

Slovenia 205.29 7.08 18.72 1.03 0.30 0.93 0.34 0.21 1.20

Trinidad & Tobago 17.16 0.59 17.42 3.75 1.07 3.28 18.98 11.86 11.77

Tunisia 10.50 0.36 13.06 1.29 0.37 1.70 4.73 2.96 2.17

Ukraine 1.17 0.04 4.62 0.13 0.04 0.56 − − −

IFCG FrontierComposite 10.53 0.36 12.00 1.25 0.36 1.62 7.01 4.38 −

6—IFC Index Market Profiles

Argentina

Market Performance

Following three consecutive years of double−digit gains, Argentine equities reversed course in 1998, falling over20% on repercussions of the August Russian debt default, instability in emerging markets and oil prices at12−year lows. Weakness in the Brazilian economy weighed heavily on the Buenos Aires bolsa as investorsassessed the likelihood of a regional recession and decreased demand for Argentine exports. Approval of $41.5billion in IMF aid for Brazil, strong economic fundamentals, and adherence to the exchange rate regimecushioned the market's fall, as the Argentine bolsa posted the smallest decline in Latin America for the year. Still,the losses were substantial: the dollar−based IFCI and IFCG indexes dropped 28.5% and 28.4%, respectively. Alow inflation rate of 0.7% and a 4.2% growth in GDP, the strongest of the region, prevented much larger falls inthe indexes.

Shares traded mixed in the first quarter of 1998 as gains in February and March eroded January losses. Concernover slowing Asian demand for exports from the Latin America region pushed equities lower in January. Themarket recovered on news of the approval of an $2.8 billion IMF credit facility to support the country's economicreform program and on strength in Argentine ADR trading in New York. Pension fund investments late in theperiod gave the market an additional boost as the IFCI Argentina Index closed up 1.4% for the first quarter.

Investor enthusiasm proved fleeting in the second quarter of the year, as riots in Indonesia and an oil price declineto below $15 per barrel battered the market. Oil companies YPF and Perez Companc led the market fall onconcern over an erosion in the country's export earnings.Oil accounts for roughly 8% of the country's exports. Thesuspension of $10 billion in government spending on infrastructure projects and weakening confidence inemerging markets following Indonesian President Suharto's forced resignation also affected Argentine equities, as


6— IFC Index Market Profiles 210

the IFCI Index lost 19.4% for the quarter.

The IFCI Index continued its decline in the third quarter, dragged lower by the market's 32% plunge inAugust—the worst monthly performance in over a decade. The devaluation of the Russian ruble in Augustsparked a worldwide equity sell−off on concerns that other emerging markets would follow suit. The marketsteadied in September, as investors snapped up automobile, telecommunication, and oil company shares atrecord−low prices, but closed down 18.6% for the quarter.

Equities gained ground in the fourth quarter, as an unexpected cut in U.S. interest rates coupled with approval of a$41.5 billion IMF−led aid package for Brazil lifted the IFCI Argentina Index 7.5% higher. The market greeted theaid package enthusiastically on hopes a regional recession will be averted. News of the sale of 14.99% of theArgentine government's stake in oil company YPF also strengthened investor confidence in equities onexpectations of above−market bids for the shares.

Looking forward, former Economy Minister Domingo Cavallo, Buenos Aires Mayor Fernando de la Rua, andPeronist leader Eduardo Duhalde emerged as leading candidates for the October 1999 presidential elections,following current President Carlos Menem's decision not to seek another term.break

Monthly Value Traded(US$ millions)

IFCI Argentina Index Correlation(5−year period ending 12/98)

IFCI P/E Ratio(end of month values)


6— IFC Index Market Profiles 211

Monthly Market Capitalization(US$ millions)

Share of Emerging Market Capitalization*(end−1998; total=$1,686 billion)

* 51 markets covered by EMDB

Exchange Rate(pesos per U.S. dollar)

Argentina 1998:(Currency in Millions)


Number of ListedCompanies

Buenos Aires StockExchange

136 136 138 139 138 137 135 135 135 134 133 130

MarketCapitalization

In pesos 54,070 58,417 60,250 60,128 53,585 50,987 54,438 37,750 42,551 46,752 48,592 45,292

In U.S. dollars 54,092 58,447 60,256 60,134 53,612 50,992 54,466 37,758 42,555 46,766 48,602 45,332

Trading Value

In pesos 1,188 1,498 1,625 1,246 1,264 1,023 1,457 1,511 1,309 1,250 636 1,069

In U.S. dollars 1,188 1,498 1,626 1,246 1,265 1,023 1,458 1,511 1,309 1,251 636 1,070

Turnover ratio (%) 2.1 2.7 2.7 2.1 2.2 2.0 2.8 3.3 3.3 2.8 1.3 2.3

Local Index


Argentina 1998: (Currency in Millions) 212

Bolsa IndiceGeneral*

21,046.0 22,724.6 23,394.9 23,230.0 20,543.0 19,551.0 20,908.5 14,488.0 16,344.3 18,263.6 18,958.2 17,409.0

Change in index (%)−8.8 8.0 2.9 −0.7 −11.6 −4.8 6.9 −30.7 −12.8 11.7 3.8 −8.2

IFC Global Index

Number of stocks 35 35 35 35 35 35 35 35 35 35 33 32

Share of market cap.(%)*

61.0 61.1 61.3 60.3 59.5 59.1 59.0 57.1 57.5 59.5 59.7 57.0

Share of tradingvalue (%)

91.0 95.6 89.9 93.8 92.4 95.7 93.3 95.9 95.4 94.9 96.7 92.2

P/E ratio 14.8 15.7 16.3 16.4 14.8 13.5 14.4 9.7 11.1 12.6 13.6 13.4

P/BV ratio 1.6 1.7 1.8 1.7 1.5 1.4 1.5 1.0 1.2 1.3 1.4 1.3

Dividend yield (%) 2.7 2.7 2.5 2.8 3.2 3.4 3.1 4.6 4.1 3.5 3.5 4.0

Total return index* 2,501.4 2,711.7 2,808.3 2,760.4 2,428.3 2,280.6 2,447.2 1,652.0 1,870.7 2,135.7 2,246.0 2,032.5

Change in totalreturn index (%)

−8.9 8.4 3.6 −1.7 −12.0 −6.1 7.3 −32.5 13.2 14.2 5.2 −9.5

Exchange Rates

Exchange rates (endof period)

0.9996 0.9995 0.9999 0.9999 0.9995 0.9999 0.9995 0.9998 0.9999 0.9997 0.9998 0.9991

Notes: The base date for the Bolsa Indice General is Dec. 29, 1977=0.00001. The base date for the IFCG Argentina Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Buenos Aires StockExchangeMr. Eugenio de Bary,ChairmanMr. Edgar I. Jelonche, ChiefExecutiveSarmiento 299, 2nd FloorBuenos Aires, 1353ArgentinaTel: (54−11) 4316−7050Fax: (54−11) 4312−9332http://www.bcba.sba.com.ar/

Rosario Board of TradeNicanor Sodiro, ChairmanCont.Mario A. Acoroni, General ManagerCordoba 1402Rosario, Santa Fe, 2000ArgentinaTel: (54−41) 213−471, 213−478Fax: (54−41) 241−019

IFC Correspondent:HSBC Banco Roberts S.A.25 de Mayo 258Buenos AiresArgentinaTel: (54−11) 4345−8194Fax: (54−11) 4343−9852


Argentina 1998: (Currency in Millions) 213

http://www.bcba.sba.com.ar/

Argentina 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Buenos Aires StockExchange

178 179 174 175 180 156 149 147 136 130

Market Capitalization

In pesos 575 1,853 18,491 18,595 43,967 36,867 37,780 44,670 59,240 45,292

In U.S. dollars 4,225 3,268 18,509 18,633 43,967 36,864 37,783 44,679 59,252 45,332

Trading Value

Inpesos 71 408 4,612 15,551 10,337 11,370 4,594 4,378 25,696 15,806

In U.S. dollars 1,916 852 4,824 15,679 10,339 11,372 4,594 4,382 25,702 15,809

Turnover ratio (%) 24.5 33.6 45.3 83.9 33.0 28.1 12.3 10.6 49.5 35.0

Local Index

Bolsa Indice General* 717.20 2,202.9 17,856.0 13,427.5 20,607.2 15,855.6 16,237.8 18,494.9 23,072.0 17,409.0

Change in index (%) 17,231.8 207.2 710.6 −24.8 53.5 −23.1 2.4 13.9 24.7 −24.5

IFC Global Index

Number of stocks 24 27 28 29 31 30 34 35 35 32


77.8 68.7 85.9 76.7 71.6 50.9 58.6 60.8 61.4 57.0

P/E ratio 9.1 −3.1 −406.0 38.0 41.9 17.7 15.0 38.2 16.3 13.4

P/BV ratio 1.1 0.3 1.7 1.2 1.9 1.4 1.3 1.6 1.8 1.3

Dividend yield (%) 4.7 0.9 0.3 1.9 2.3 2.9 3.5 2.9 2.1 4.0

Total return index* 540.7 343.1 1,704.8 1,253.1 2,164.7 1,661.4 1,872.1 2,290.0 2,746.2 2,032.5

Change in index (%) 175.9 −36.5 396.9 −26.5 72.7 −23.3 12.7 22.3 19.9 −26.0

Economic Data


Argentina 1989−1998: (Currency in Millions; End of Period Levels) 214

Gross domestic product(US$)

76,691 141,234 180,898 226,638 257,570 281,643 280,779 298,734 325,012 344,360

Change in consumerprice index (%)

3,079.8 2,314.0 171.7 24.9 10.6 4.2 3.4 0.2 0.5 −

Exchange rate (end ofperiod)

0.1360 0.5670 0.9990 0.9980 1.0000 1.0001 0.9999 0.9998 0.9998 0.9991

Exchange rate (averageof period)

0.0370 0.4793 0.9560 0.9918 0.9998 0.9998 0.9999 0.9992 0.9998 0.9998

Notes: The base date for the Bolsa Indice General is Dec. 29, 1977=0.00001. The base date for the IFCG Argentina Index is Dec.1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Bangladesh

Market Performance

Bangladesh succumbed to another year of bearish results in 1998. A general mistrust of emerging markets, atorrential monsoon period that left large areas of Bangladesh under water and hampered the government withbillions of dollars in losses, as well as persistent political fighting between the government and opposition partyall played parts in dragging share prices lower. The yearlong disinterest in Bangladesh equities resulted in a38.5% dollar loss in the IFCG Bangladesh Index while the Dhaka Stock Exchange's All−Share Index shed 28.6%in taka terms. The taka, after a 3% devaluation midyear, finished the year 4.9% weaker against the dollar.

Share prices in the first quarter drifted lower from the outset of the year, pulled down by selling pressure from theliquidation of Hong Kong's Peregrine Investment Holdings and by rumors of a currency devaluation. Althoughnot a big player in Bangladesh equities, Peregrine's bankruptcy ruffled investor confidence quite substantially. Asa result, during the remainder of January, investors clearly decided to wait it out on the sidelines, especially afterfive listed companies announced a no−dividend payout for fiscal year 1996/97. The quarter's dismal performanceis evident from the 18.5% decline in the IFCG Bangladesh Index and the 14.8% drop in the DSE All−ShareIndex.

Stocks took a surprising upturn the following quarter after the DSE introduced measures to regain the trust andconfidence of investors. To entice new activity on the market, the DSE modified its membership policy to allowforeigners in. The liberalized membership policy aimed to raise the DSE's broker roster to 300 from the present250 brokers. As investors bought into the depressed market, the Securities and Exchange Commission ofBangladesh approved a new netting system that allowed all deals to be settled on the same trading day. The IFCGBangladesh Index ended the quarter with a 2.5% gain while the DSE All−Share Index posted a 4.9% rise.


Bangladesh 215

The DSE returned to its listless state following massive flooding brought about by heavy monsoon rains. Sharesregained some ground toward the end of the quarter as Bangladesh began the arduous task of returning topost−flooding normalcy. August 10 marked the end of the open−outcry system and the start of the newscreen−based automated trading system on the DSE. End−quarter results showed a 14.4% decline on the IFCGBangladesh Index and 11.2% drop in the DSE All−Share Index.

Year−end results were no different from the previous quarter as an unexpected 3% devaluation in the taka andpoor dividend announcements by two IFCG Bangladesh Index constituents left investors on the sidelines oncemore. The central bank announced a surprise devaluation on October 15, aimed at boosting export earnings andoverseas remittances by Bangladeshis, who as a group, remit more than $1 billion a year. Politics underminedinvestor confidence in the late stages of the year. Investors again took to the sidelines in November and Decemberafter the main opposition party, Bangladesh Nationalist Party, and its supporters enforced a 48−hour nationwidestrike on November 9 and 10 to protest undemocratic policies of the current administration. The IFCGBangladesh Index lost an additional 14% during the period.break


IFCG Bangladesh Index Correlation(36−month period ending 12/98)

IFCG P/E Ratio(end of month values)


Bangladesh 216


Share of Emerging MarketCapitalization*(end−1998; total=$1,868 billion)


Exchange Rate(taka per U.S. dollar)

Bangladesh 1998:(Currency in Millions)



Dhaka StockExchange

202 203 203 203 204 204 204 204 204 204 207 208


In taka 67,864.8 63,051.0 58,421.0 52,103.8 56,859.6 60,812.0 58,713.1 52,363.4 53,575.1 53,153.9 51,389.6 48,926.8

In US dollars 1,486.3 1,357.4 1,257.7 1,121.7 1,224.1 1,309.2 1,241.1 1,106.9 1,132.5 1,123.6 1,086.3 1,034.2

Trading Value

In taka 926.7 810.9 843.2 481.2 641.4 986.9 384.1 1,177.7 7,512.9 9,966.8 7,686.7 5,796.0

In US dollars 20.3 17.5 18.2 10.4 13.8 21.2 8.1 24.9 158.8 210.7 162.5 122.5

Turnover ratio (%) 2.0 1.2 1.4 0.9 1.2 1.7 0.6 2.1 14.2 18.7 14.7 11.6

Local Index


Bangladesh 1998: (Currency in Millions) 217

DSEAll SharePrice*

741.8 687.5 644.8 574.4 628.2 676.5 652.4 583.1 600.6 594.4 570.6 540.2

Change in index (%)−2.0 −7.3 −6.2 −10.9 9.4 7.7 −3.6 −10.6 3.0 −1.0 −4.0 −5.3

IFC Global Index

Number of stocks 46 46 46 46 46 46 46 46 46 46 46 49


68.2 68.3 66.9 65.7 66.6 65.8 65.9 65.3 65.1 63.6 61.1 62.9


63.4 63.0 66.2 70.5 67.8 65.2 64.0 64.9 17.1 12.1 6.9 7.0

P/E ratio 13.7 12.8 11.6 10.0 11.1 11.8 11.4 10.1 10.3 10.0 9.3 9.1

P/BV ratio 2.1 2.0 1.8 1.6 1.7 1.8 1.8 1.6 1.6 1.5 1.4 1.4

Dividend yield (%) 4.3 4.6 5.1 5.1 4.5 4.3 4.5 4.6 4.5 4.6 3.5 3.7

Total return index* 99.5 91.2 82.8 72.9 81.2 86.0 81.9 72.7 74.5 72.2 67.1 64.3


−1.8 −8.3 −9.2 −12.0 11.4 6.0 −4.8 −11.2 2.4 −3.0 −7.1 −4.2

Exchange Rates

Exchange rate (endof period)

45.6604 46.4500 46.4500 46.4500 46.4500 46.4500 47.3084 47.3050 47.3088 47.3088 47.3088 47.3088

Notes: The base date for the DSE All Share Price Index is 1985=100. The base date for the IFCG Bangladesh Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Dhaka Stock Exchange Ltd.Dr. Raqibur Rahman, ChairmanStock Exchange Building9F. Motijheel Commercial AreaDhaka, 1000BangladeshTel: (880−2) 956−4601, 966−6940 to 49Fax: (880−2) 867−552, 956−4727

IFC Correspondent:Equity Resources Ltd.Jahangir Tower10 Kawran Bazar C.A.Dhaka 1215BangladeshTel: (880−2) 816−556Fax: (880−2) 817−721

Bangladesh 1989−1998:(Currency in Millions; End of Period Levels)


Bangladesh 1989−1998: (Currency in Millions; End of Period Levels) 218

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Dhaka Stock Exchange116 134 138 145 153 170 183 186 202 208


In taka 15,350.5 11,486.0 10,397.0 12,299.1 18,098.7 41,770.0 53,931.0 193,922.669,166.5 48,926.8

In US dollars 475.7 320.9 269.5 314.4 453.1 1,049.5 1,338.2 4,551.0 1,537.4 1,034.2

Trading Value

In taka 173.7 195.0 116.0 437.8 578.8 4,283.7 6,380.9 29,958.1 16,854.5 37,214.3

In US dollars 5.4 5.6 3.2 11.2 14.6 106.5 158.4 721.9 383.9 795.6

Turnover ratio (%) 1.2 1.4 1.1 3.9 3.8 14.3 13.3 24.2 12.8 63.0

Local Index

DSE All Share Price* 467.8 350.8 296.3 369.6 391.8 845.6 834.7 2,300.1 756.8 540.2

Change in index (%) −12.3 −25.0 −15.5 24.7 6.0 115.8 −1.3 175.6 −67.1 −28.6

IFC Global Index

Number of stocks − − − − − − 45 46 46 49


− − − − − − 72.7 68.6 67.4 62.9

P/E ratio − − − − − − − 49.0 13.5 9.1

P/BV ratio − − − − − − − 7.0 2.1 1.4

Dividend yield (%) − − − − − − − 1.1 4.3 3.7

Total return index* − − − − − − 100.0 303.5 101.4 64.3

Change in total returnindex (%)

− − − − − − − 203.5 −66.6 −36.6

Economic Data


26,779 29,855 30,729 31,537 33,066 33,476 37,614 40,304 41,419 42,775


Bangladesh 1989−1998: (Currency in Millions; End of Period Levels) 219


10.0 8.1 7.2 4.3 0.0 3.6 5.8 2.7 5.6 −


32.2700 35.7900 38.5800 39.1236 39.9400 39.8000 40.3000 42.6110 44.9905 47.3088


32.2700 34.5670 36.5962 38.9510 39.5670 40.2120 40.2780 41.4966 43.9089 46.7775

Notes: The base date for the DSE All Share Price Index is 1985=100. The base date for the IFCG Bangladesh Index is Dec.1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Botswana

Market Performance

The Botswana Stock Exchange (BSE) finished the year as one of the strongest performing markets in the world.The IFCG Botswana Index gained 9.2% in dollar terms for 1998 while the local Domestic Company Index (DCI)raced ahead, returning 33.6% in pula.

The Bank of Botswana's announcement of a further liberalization of exchange controls in January portended astrong year on the BSE. The measure cleared the way for individual non−residents to purchase up to 10% of thefree float of listed companies (up from 5%) without central bank approval, as well as boosted aggregateshareholding for non−resident investors to 55% from 49% of free float. Government statistics showing that theannual inflation rate had dipped to 7.8% in December 1997, the lowest level in almost 10 years, also contributedto the early euphoria. Domestic shares finished the quarter strongly, with the IFCG Index climbing 7.7% in Marchon favorable corporate results and amid enthusiasm over the visit of U.S. President Bill Clinton. Strong foreigninterest in DCI stocks and Clinton's visit boosted turnover and share prices. In addition, a decline in inflationencouraged the Bank of Botswana to cut its key bank lending rate in early March to 11.75%, the second rate cut in1998, setting the stage for a promising second quarter. In all, the IFCG Index gained 13.1% over the first quarter.

Shares continued to surge ahead early in the second quarter, boosted by Festus Mogae's ascension to the nation'spresidency and his promise that the country would remain committed to a free market economy. However, asworld stock markets began to slump toward the end of June as a result of the Japanese yen depreciation andbalance−of−payments difficulties in Russia, the Botswana Stock Exchange fell victim to the downturn. Increasinginternational financial turmoil coupled with domestic level problems, such as weakening demand for diamonds,renewed investor skepticism. The IFCG Index finished the second quarter with a gain of 4.0%.


Botswana 220

Trading volumes fluctuated from July to September as equity prices managed to fight off the worldwide stockmarket plunge with the help of the government's surprise announcement of a 25% minimum salary increase tocivil servants. The pay hike, well above the prevailing market forecast, was expected to increase private sectorsavings and consumer spending. Later in the period, the index remained mostly unaffected by the world economicdecline and managed to reach record levels as measured by the BSE Index. The IFCG Index fell 5.6% over thethree−month period.

In the final quarter, equities remained flat despite the first new domestic listing on the Botswana Stock Exchangesince Pep Botswana Holdings in 1992. The initial public offering of MRI Botswana, a pre−hospital care business,was well oversubscribed and returned strong initial results. This was followed in December by another new issue,Furniture Mart, a furnished goods retailer for the local market. Furniture Mart's IPO was also well received as itwas oversubscribed by more than 80%. In spite of the enthusiasm over the two new equity issues, the overallmarket was mostly unaffected as the BSE remained nearly unchanged in the final trading sessions of the year.Over the quarter, the IFCG Index fell 1.7%.break


IFCG Botswana Index Correlation(36−month period ending 12/98)




Exchange Rate(pula per U.S. dollar)


Botswana 221


Botswana 1998:(Currency in Millions)



Botswana StockMarket

12 12 12 12 12 12 12 12 12 13 13 14


In pula 2,366.1 2,476.9 2,672.6 3,006.1 3,163.5 3,130.3 3,163.0 3,218.6 3,196.3 3,116.4 3,216.4 3,224.7

In US dollars 614.2 642.7 691.1 769.9 796.9 735.3 683.2 660.5 713.1 714.0 729.5 723.6

Trading Value

In pula 22.0 43.6 15.0 13.5 22.8 29.4 30.5 35.0 22.9 26.1 23.8 10.5

In US dollars 5.7 11.3 3.9 3.5 5.8 6.9 6.6 7.2 5.1 6.0 5.4 2.4

Turnover ratio (%) 0.1 1.8 0.6 0.5 0.7 0.9 1.0 1.1 0.7 0.8 0.8 0.3

Local Index

Botswana DCI* 717.8 751.4 810.8 911.9 959.7 949.2 959.1 976.0 951.3 945.0 974.8 946.9

Change in index (%) 1.3 4.7 7.9 12.5 5.2 −1.1 1.0 1.8 −2.5 −0.7 3.1 −2.9

IFC Global Index

Number of stocks 7 7 7 7 7 7 7 7 7 7 7 7

Share of market cap.(%)

76.6 75.8 76.5 76.2 75.4 74.6 74.3 73.8 72.3 72.4 73.0 69.6

Share of trading value(%)

97.5 82.7 94.2 65.0 94.2 98.4 94.2 81.3 69.9 91.7 49.7 80.4

P/E ratio 11.2 11.8 11.8 13.2 13.2 12.9 13.1 12.9 12.4 12.1 11.5 10.9

P/BV ratio 3.5 3.7 2.8 3.2 3.1 3.1 3.1 3.1 3.0 3.0 3.1 3.0

Dividend yield (%) 5.3 5.1 4.8 5.2 4.3 4.6 4.5 5.2 5.5 4.4 4.4 4.7


Botswana 1998: (Currency in Millions) 222



1.3 3.9 8.0 12.4 2.9 −8.2 −7.2 −3.1 5.9 0.6 4.2 −5.2

Exchange Rates


3.8521 3.8536 3.8670 3.9047 3.9698 4.2571 4.6296 4.8733 4.4823 4.3649 4.4092 4.4563

Notes: The base date for the BSE DCI Index is 1989=100. The base date for the IFCG Botswana Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Botswana Stock ExchangeMr. Louis Nchindo, ChairmanPrivate Bag 00417Ground Floor, Barclays HouseKhama CrescentGaboroneBotswanaTel: (267) 357−900Fax: (267) 357−901

IFC Correspondent:Stockbrokers Botswana Ltd.Private Bag 00113Ground Floor, Barclays HouseKhama CrescentGaboroneBotswanaTel: (26−7) 357−900Fax: (26−7) 357−901

Botswana 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Botswana Stock Market − − 9 11 11 11 12 12 12 14


In pula − − 545.4 657.3 668.9 1,024.3 1,120.3 1,189.8 2,335.5 3,224.7

In US dollars − − 260.7 294.6 260.8 376.9 397.6 325.5 614.5 723.6

Trading Value

In pula − − 17.1 31.8 48.0 83.8 106.8 103.4 216.8 295.3


Botswana 1989−1998: (Currency in Millions; End of Period Levels) 223

In US dollars − − 8.5 14.9 19.9 31.1 38.4 31.2 74.3 69.7

Turnover ratio (%) − − 3.1 5.3 7.2 9.9 10.0 9.0 12.3 10.6

Local Index

Botswana DCI* − 230.4 271.7 273.7 278.5 312.9 332.8 352.2 708.5 946.9

Change in index. (%) − − 17.9 0.7 1.8 12.4 6.4 5.8 101.2 33.6

IFC Global Index

Number of stocks − − − − − − 7 7 7 7

Share of market cap. (%) − − − − − − 77.4 76.1 75.8 69.6

P/E ratio − − − − − − − 6.3 11.8 10.9

P/BV ratio − − − − − − − 1.7 3.5 3.0

Dividend yield (%) − − − − − − − 8.2 5.6 4.7


Change in total return index(%)

− − − − − − − −13.6 110.3 14.4

Economic Data

Gross domestic product (US$)2,932 3,387 3,941 3,966 4,098 4,317 4,585 4,936 5,070 −

Change in consumer priceindex (%)

11.6 11.4 11.8 16.2 14.3 10.5 10.5 10.1 8.6 −

Exchange rate (end of period)− 1.8605 2.0921 2.2311 2.5648 2.7178 2.8177 3.6550 3.8008 4.4563

Exchange rate (average ofperiod)

− 1.8601 2.0173 2.1327 2.4190 2.6971 2.7824 3.3203 2.9196 4.2383

Notes: The base date for the BSE DCI Index is 1989=100. The base date for the IFCG Botswana Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Brazil

Market Performance

International and domestic factors kept Brazilian interest rates up and the stock market down in 1998. Residualeffects of the Asian financial crisis as well as the problem of Brazil's twin fiscal and current account deficits droveinterest rates to unsustainable levels as policy−makers attempted to defend Brazil's fixed exchange rate fromspeculative attacks. Brazil was the fifthworst−performing IFC stock market for 1998 as the local BOVESPAIndex plummeted 33.5% in real terms, and the IFCI and IFCG Brazil indexes fell 43.0% and 42.6%, respectively,in dollar terms.


Brazil 224

Brazilian equities made small gains from January to July on encouraging signs that the federal government wastaking measures to trim its large fiscal deficit. The sale of state−owned assets attracted foreign investors. A totalof $2.2 billion poured into Brazil in the first two months of 1998, helping to lift the IFCI Index 7.5% in Februaryand 8.7% in March.

In spite of the ongoing privatization of utilities, markets were given a scare in May, with the IFCI Indexplummeting 16.1% when the government announced it would delay the sale of national telephone monopolyTelebras until July 29. Market volatility increased dramatically throughout summer resulting from financial woesin East Asia and Russia. Investors sent the market tumbling in early June after Moody's revised its sovereignrating on Brazilian bonds from stable to negative. Share prices recovered quickly after a mid−month U.S.Treasury operation in support of the ailing Japanese yen lifted hopes that renewed Japanese demand might fuel anAsian recovery.

Brazilian authorities spent the latter half of the year attempting to ease tight monetary conditions. Thegovernment's flawless execution of the Telebras privatization in late July strengthened President FernandoHenrique Cardoso's standing before October elections, lifting the IFCI Index 8.5%. Conscious of the need torevive the economy and reduce borrowing costs, the central bank immediately capitalized on the success of thesale by quietly lowering interest rates, fixing the benchmark TBAN rate lower than market expectations at25.75%. International developments dramatically increased Brazil's risk and market volatility immediatelythereafter and throughout the remainder of 1998, however.

The August Russian ruble devaluation and debt moratorium vitiated demand for Brazilian assets as the IFCI Indexfell a breathtaking 39.2%. Brazilian authorities resisted raising interest rates at the turmoil's onset and insteadattempted to appease the market by tabling more fiscal reform legislation. Continued capital flight and anotherMoody's downgrade of sovereign bonds, however, finally forced the government's hand as the central bank raisedthe TBAN to 49.75%.

Stocks made small gains in September and October and finally rallied 20% in November after the creation of a$41.5 billion IMF−sponsored emergency credit line. The central bank responded by aggressively pushing downinterest rates to 34.4%. The market was again taken by surprise in December, falling 21.4% after oppositionlawmakers voted against public sector pension reforms that would have saved the government $2.2 billion. Faithin the government's ability to reduce the $64 billion deficit waned significantly, triggering a renewed bout ofcapital flight. In spite of the prodigious capital outflows and deteriorating sentiment in late 1998, the central banklowered the TBAN rate to 28.6% in December from November's high of 42.75%.break


Brazil 225


IFCI Brazil Index Correlation(5−year period ending 12/98)



Share of Emerging Market Capitalization*(end−1998; total=$1,868 billion)


Exchange Rate(real per U.S. dollar)

Brazil 1998:(Currency in Millions)



Sao Paulo Bolsa deValores

536 537 543 536 541 536 539 536 548 541 529 527


Brazil 1998: (Currency in Millions) 226


In reais 267,886 281,871 309,090 310,057 267,147 254,012 272,006 187,874 184,396 192,581 219,814 194,399

In U.S. dollars 238,524 249,399 271,823 271,029 232,261 219,620 233,883 159,635 155,582 161,440 183,041 160,887

Trading Value

In reais 13,130 14,765 16,547 22,952 14,703 13,182 15,696 14,560 12,356 9,887 11,697 10,646

In U.S. dollars 11,691 13,064 14,552 20,063 12,783 11,397 13,496 12,371 10,425 8,289 9,740 8,811

Turnover ratio (%) 4.8 5.4 5.6 7.4 5.1 5.1 6.0 6.3 6.6 5.3 5.7 5.1

Local Index

IBOVESPA* 9,720 10,570 11,946 11,677 9,846 9,678 10,707 6,472 6,593 7,047 8,631 6,784

Change in index (%)−4.7 8.7 13.0 −2.3 −15.7 −1.7 10.6 −39.5 1.9 6.9 22.5 −21.4

IFC Global Index

Number of stocks 87 87 87 87 87 86 86 86 108 108 100 100


68 69 69 67 62 63 65 56 57 58 67 61


83 69 77 54 77 76 73 72 75 36 43 31

P/E ratio 11.7 12.8 12.6 12.1 9.5 9.4 10.2 6.1 6.4 6.8 7.9 7.0

P/BV ratio 0.9 1.0 1.1 1.1 0.9 0.9 1.0 0.6 0.6 0.6 0.8 0.6

Dividend yield (%) 4.2 3.8 3.6 4.2 5.0 5.1 5.1 8.5 8.4 8.8 6.4 7.8



−7.0 7.1 9.7 −1.7 −15.7 −2.2 8.7 −37.3 −0.4 4.2 19.5 −18.3

Exchange Rates


1.1231 1.1302 1.1371 1.1440 1.1502 1.1566 1.1630 1.1769 1.1852 1.1929 1.2009 1.2083

Notes: Market cap figures are for Sao Paulo only. Trading values are combined Sao Paulo and Rio de Janeiro. The base date forIBOVESPA is 1968=0.000000001. The base date for the IFCG Brazil Index is Dec. 1984=100. In calculating share of total market cap,IFCG market cap is not adjusted for cross holdings.


Brazil 1998: (Currency in Millions) 227

Sao Paulo Stock ExchangeMr. Gilberto Mifano, CEORua XV de Novembro, 275Sao Paulo−SP, 01013−001BrazilTel: (55−11) 233−2000Fax: (55−11) 239−4981http://www.bovespa.com.br/

Rio de Janeiro Stock ExchangeMr. Fernando Opitz, ChairmanMr. Sergio Luiz Berardi, CEOPraca XV de Novembro, 20Centro − Rio de Janeiro, 20010−010BrazilTel: (55−21) 514−1010Fax: (55−21) 221−2151http://www.bvrj.com.br/

IFC Correspondent:Lopes Filho & AssociadosRua Araujo Porto Alegre36−8 andarRio de Janeiro, RJ 20030−010BrazilTel: (55−21) 210−2152Fax: (55−21) 240−2828http://www.lopesfilho.com.br

Brazil 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Sao Paulo Bolsa deValores

592 581 570 565 550 544 543 551 536 527


In reais 0.18231 0.9576 16.9512 201.503 11,603 160,321 143,502 225,474 285,139 194,399

In U.S. dollars 44,368 16,354 42,759 45,261 99,430 189,281 147,636 216,990 255,478 160,887

Trading Value

Inreais 0.01707 0.13425 1.92273 34.408 1,922.7 71,666 72,693 112,669 219,073 170,123

In U.S. dollars 16,762 5,598 13,373 20,525 57,409 109,498 79,186 112,108 203,260 146,594

Turnover ratio (%) 17.9 23.6 22.0 31.5 32.6 83.4 47.8 61.1 85.8 71.0

Local Index

IBOVESPA* 0.00616 0.02516 0.6078 6.7805 375.45 4,353.9 4,299.0 7,039.9 10,196.0 6,784.0

Change in index (%) 1,762.5 308.3 2,316.0 1,015.6 5,437.2 1,059.6 −1.3 63.8 44.8 −33.5

IFC Global Index

Number of stocks 56 67 69 69 70 83 87 86 87 100


Brazil 1989−1998: (Currency in Millions; End of Period Levels) 228

http://www.bovespa.com.br/

http://www.bvrj.com.br/

http://www.lopesfilho.com.br


43.5 40.1 47.6 51.3 61.2 59.1 64.1 61.7 68.7 60.7

P/E ratio 5.9 4.7 15.5 −24.4 12.6 13.1 36.3 14.5 12.4 7.0

P/BV ratio 0.7 0.3 0.8 0.4 0.5 0.6 0.5 0.7 1.0 0.6

Dividend yield (%) 0.7 9.4 0.6 0.7 0.4 0.7 3.4 2.3 3.9 7.8

Total return index* 170.7 58.6 158.4 158.9 316.9 538.2 429.3 577.1 720.9 440.3

Change in index (%) 39.9 −65.7 170.3 0.3 99.4 69.8 −20.2 34.4 24.9 −38.9

Economic Data

Gross domesticproduct (US$)

448,763 464,989 407,729 390,567 438,299 546,486 703,912 774,946 820,381 778,292


1,430.7 2,947.7 432.8 951.6 1,928.0 2,075.9 66.0 15.8 6.9 −


0.0113 0.1610 1.0902 12.243 320.920 0.8470 0.9720 1.0391 1.1161 1.2083

Exchange rate(average of period)

0.0028 0.0660 0.4057 4.6118 92.1026 0.6545 0.9180 1.0050 1.0778 1.1605

Notes: Market cap figures are for Sao Paulo only. Trading values are combined Sao Paulo and Rio de Janeiro. The basedate for IBOVESPA is 1968=0.000000001. The base date for the IFCG Brazil Index is Dec. 1984=100. Brazil reformedits currency on July 1, 1994, exchanging its former currency (the cruzeiro real) for a new currency (the real) at a rate of2,750:1. This series has been adjusted to reflect the change. IBOVESPA was divided by 10 on Feb. 10, 1994, and againon March 3, 1997. The series has not been adjusted to reflect the second change. In calculating share of total market cap,IFCG market cap is not adjusted for cross holdings.

Bulgaria

Market Performance

The Bulgarian stock market followed the lead of other more prominent Eastern European markets during 1998,gaining ground through midyear and then retreating after the onset of the currency and debt crisis in Russia. TheBulgaria Stock Exchange−Sofia Warburg 30 Index, launched in December 1997 as an off−exchange index, lost38% by the end of the year. The dollar−based IFCG Bulgaria Index fell 30%, while the local currency, the lev,fell 33.28% for the year.

Equities evinced signs of life at the start of 1998 when trading resumed at the newly opened BSE−Sofia StockExchange. The market gained more than 50% on positive corporate fundamentals, a steady lev, and low inflation.Banks, many trading at low price−to−earnings ratios, drew considerable investor attention during the rally, asthose institutions that survived the 1996−97 banking crisis—in which 30% of banking institutions wereclosed—were seen as solvent and with high capitalization ratios.

Despite the positive investment climate at home, equities slipped into a downward spiral in June following theturmoil on global markets. The Russian financial crisis sent Bulgarian stocks diving to new lows in August and


Bulgaria 229

September, although the overall impact of the crisis on Bulgaria's economy was muted given the country's limitedexposure to Russian markets. Bulgarian equities showed signs of recovery later in the year but stopped short of afull rebound as the market lacked positive domestic news on which to base further advancement.

The Bulgarian equity market remained small and illiquid in 1998. Despite overall corporate stability, the market isperceived by investors as risky, poorly regulated, and particularly vulnerable to global crises. Stock marketdevelopment was also hampered as the economy remained weak and a lack of new lending activity continued toimpose a drag on growth. Economic restructuring, in particular the sale of strategic stakes in government−ownedfirms to domestic and foreign investors, inched forward at a slow pace.

Bulgaria maintained two main markets in 1998—the official market and the free market. The official market isdivided in "A", "B", and "C" segments, each differing according to listing requirements. Group "A" representsrelatively large companies, traded typically by portfolio investors. Group "B", or the parallel market, includessmaller, less liquid companies that trade occasionally. Lastly, group "C" is a provisional market that includes onlyshares issued under Bulgaria's mass privatization scheme and maintains less strict listing requirements. Presentlythere are sixteen companies listed on the official market. There are virtually no requirements on the free marketexcept an agreement with the Central Depository and free negotiability of shares. There are 985 listed companiesbut most are rarely if ever traded. Only about 20 to 30 companies trade fairly regularly but their volumes are lowand, accordingly, price reliability is poor.

New trading regulations designed to bolster the Bulgarian equity market were proposed in October, but have yetto be adopted. Measures included the introduction of an electronic trading system for the free market and itsconnection to the Central Depository and inter−bank system, as well as a maximum 10% daily price fluctuationlimit for all free market stocks. Currently there is a similar 5% restriction in the official market.break


Bulgaria 230


IFCG Bulgaria Index Correlation(36−month period ending 12/98)





Exchange Rate(lev per U.S. dollar)

Bulgaria 1998:(Currency in Millions)



Bulgarian StockExchange—Sofia

15 15 15 15 15 15 15 15 15 15 15 998


In lev 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 3,832.0 1,651,106

In US dollars 2.1 2.1 2.1 2.1 2.1 2.1 2.2 2.1 2.3 2.3 2.3 992.3

Trading Value

In lev 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 19,283.6

In US dollars 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 11.6


Bulgaria 1998: (Currency in Millions) 231

Turnover ratio 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.3

Local Index

− − − − − − − − − − − − −

Change in index (%) − − − − − − − − − − − −

IFC Global Index

Number of stocks 12 12 12 12 12 12 12 12 12 12 12 10


− − − − − − − − − − − 36.4


− − − − − − − − − − − 19.3

P/E ratio −12.1 −12.1 −12.1 −12.1 −12.1 −12.1 −12.1 −12.1 −12.1 −12.1 −12.1 15.1

P/BV ratio 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.9 0.4

Dividend yield (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0



−1.8 −0.6 −0.8 2.3 0.6 −1.4 2.2 −1.2 7.0 1.5 −3.1 −33.0

Exchange Rates


1,809.20 1,820.20 1,834.00 1,795.50 1,782.40 1,810.20 1,769.00 1,791.80 1,673.20 1,647.50 1,702.60 1,664.00

Notes: Statistics through November 1998 represent companies listed on the old Bulgarian Stock Exchange, which was closed. Figures fromDecember 1998 represent listed companies and companies traded on the new exchange, the BSE Stock Exchange—Sofia. The base date for theIFCG Bulgaria Index is Dec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Bulgarian Stock Exchange—SofiaMr. Apostol Apostolov, Chief Executive1 Macedonia Sq.1040 SofiaBulgariaTel: (359−2) 986 5915Fax: (359−2) 87 55 66

IFC Correspondent:Global Finance39 Vitosha Blvd, I FloorSofia 1000BulgariaTel: (359−2) 81 00 36Fax: (359−2) 80 59 00


Bulgaria 1998: (Currency in Millions) 232

Bulgaria 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bulgarian StockExchange—Sofia

− − − − − 16 26 15 15 998


In lev − − − − − − 4,389.1 3,832.0 3,832.0 1,651,105.6

In US dollars − − − − − − 61.4 7.3 2.2 992.3

Trading Value

In lev − − − − − − 300.7 5.2 0.0 19,283.6

In US dollars − − − − − 4.4 0.0 0.0 11.0

Turnover ratio (%) − − − − − − 7.7 0.1 0.0 0.0

Local Index

− − − − − 118.4 113.6 104.3 77.6 77.6 77.6

Change in index (%) − − − − − −4.1 −8.2 −25.6 0.0 0.0

IFC Global Index

Number of stocks − − − − − − 12 12 12 10

Share of market cap. (%)− − − − − − − − − 36.4

P/E ratio − − − − − − − 16.9 16.9 15.1

P/BV ratio − − − − − − − 0.9 0.9 0.4

Dividend yield (%) − − − − − − − 0.2 0.0 0.0



− − − − − − − −83.0 −70.6 −30.0

Economic Data


Bulgaria 1989−1998: (Currency in Millions; End of Period Levels) 233


21,747 20,726 10,944 10,374 10,833 9,781 13,106 9,830 10,085 −


− − − − − − − − − −


− − − − − − 71.503 523.30 1,775.50 1,664.00


− − − − − − 67.938 178.43 − 1,756.73

Notes: Statistics through November 1998 represent companies listed on the old Bulgarian Stock Exchange, which was closed.Figures from December 1998 represent listed companies and companies traded on the new exchange, the BSE StockExchange—Sofia. The base date for the IFCG Bulgaria Index is Dec. 1995=100. In calculating share of total market cap,IFCG market cap is not adjusted for cross holdings.

Chile

Market Performance

Chilean shares posted lackluster results in 1998, depressed by low commodity prices, high interest rates, andcontinuing emerging market volatility. The dollar−based IFCI and IFCG indexes lost 29.8% and 30.0%,respectively, compared to gains of 3.6% and 3.4% in 1997. Having posted double−digit gains in the early 1990s,Chilean shares have failed to maintain momentum, declining in three of the last four years. Overall, index levelswere flat early in the year, but soon plummeted on reduced demand from Asia for Chilean pulp and copper, andon spillover effects of the August Russian ruble devaluation. On a more positive note, GDP expanded a solid3.5% in 1998, while inflation remained moderately low at 4.7%.

In an attempt to stimulate equity trading, the government implemented a series of policy changes by reducing thecapital control tax, or encaje, from 30% to 10% in June, and then reducing it to zero in late−August. The encajerequired foreign investors to maintain 30% of their investment in a non−interest bearing account at the centralbank for a period of one year. The one−year holding period for portfolio investment is still in place.

First quarter trading was mixed, as losses from reduced copper and pulp export revenues to Asia were offset bypositive 1997 earnings by bluechip electricity generators Enersis, Endesa, and Chilectra. Reduced commodityexport revenues forced the government to adopt a high interest rate policy early in the year, in an effort to narrowthe country's trade gap and defend the Chilean peso. Investor pessimism caused by high interest rates depressedshares late in the quarter, as the IFCI Index closed with a marginal loss of 0.8%.


Chile 234

Fears of a recession in Japan, Chile's second largest trading partner, soured market sentiment in the second quarterafter the IFCI Index plunged 20.9%. Concern over drastically reduced demand for Chilean goods from Korea andJapan cast a shadow over the market given that one−third of the country's exports are sent to Asia. During thequarter, Chilean pension funds increased bond holdings to take advantage of interest rates at 12 percentage pointsover inflation while foreign investors remained sidelined awaiting signs of an interest rate cut.

Panic seized the Santiago Stock Exchange in the third quarter as news of the Russian ruble devaluation in Augustdrove the local IGPA Index to near five−year lows. Trading was heavy as pension funds and foreign investorspulled out of the Chilean equity market en masse. The IFCI Index lost a further 20.9%. High interest rate levels,with the benchmark rate hovering around 12.5%, continued to take their toll on blue chips CTC and Enersis,which depend heavily on debt financing.

Successive interest rate cuts, a rally in ADR trading on Wall Street, and approval of a $41.5 billion IMF aidpackage for Brazil lifted shares from record lows in the fourth quarter of the year. Shrugging off news of theOctober arrest of former President Augusto Pinochet in London, the market capitalized on attractive buyingopportunities and removal of the encaje, racing ahead 13.0%. Late quarter gains were insufficient to recoup muchof the year's losses as the market closed down 30% for the year.break

Monthly Value traded(US$ millions)

IFCI Chile Index Correlation(5−year period ending 12/98)



Chile 235





Chile 1998:(Currency in Millions)

Notes: The base date for the IGPA Index is Dec. 1980=100. The base date for the IFCG Chile Index is Dec. 1984=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Santiago Stock ExchangeMr. Pablo Yrarrázabal Valdés, Chairman

Electronic Stock ExchangeMr. Andres Valenzuela del Valle, President

IFC Correspondent:Julio Salas M Y Asociados


Chile 1998: (Currency in Millions) 236

Calle La Bolsa 64SantiagoChileTel: (56−2) 698−2001, 695−8077Fax: (56−2) 697−2236http://www.bolsantiago.cl/

Huerfanos 770, 14th floorSantiagoChileTel: (56−2) 639−4699Fax: (56−2) 639−9015http://www.bolchile.cl/presenta/ipresent.htm

Santa Lucia 150, piso 5SantiagoChileTel: (56−2) 632−3166Fax: (56−2) 632−5268

Chile 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bolsa de Comerciode Santiago

213 215 221 245 263 279 284 291 295 277


In pesos 2,819,6424,596,60810,490,22911,333,74919,233,96927,349,44530,035,24927,981,72631,592,24824,545,666

In U.S. dollars 9,587 13,645 27,984 29,644 44,622 68,195 73,860 65,940 72,046 51,866

Trading Value

In pesos 224,673 233,884 663,347 735,798 1,131,810 2,208,808 4,393,212 3,487,298 3,120,943 2,034,540

In U.S. dollars 866 783 1,900 2,029 2,797 5,263 11,072 8,460 7,445 4,419

Turnover ratio (%) 9.9 6.3 8.8 6.7 7.4 9.5 15.3 12.0 10.5 7.2

Local Index

IGPA index* 757.6 1,166.7 2,483.7 2,733.5 3,915.5 5,425.2 5,740.0 4,902.6 4,794.4 3,594.8

Change in index (%)64.8 54.0 112.9 10.1 43.2 38.6 5.8 −14.6 −2.2 −25.0

IFC Global Index

Number of stocks 26 35 35 35 35 40 47 47 53 51


63.6 62.9 68.2 74.0 64.1 66.1 65.1 61.1 69.1 67.9

P/E ratio 5.6 7.9 15.9 13.0 20.0 21.4 17.1 14.6 14.7 15.1


Chile 1989−1998: (Currency in Millions; End of Period Levels) 237

http://www.bolsantiago.cl/

http://www.bolchile.cl/presenta/ipresent.htm

P/BV ratio 0.9 1.0 1.7 1.7 2.1 2.5 2.1 1.6 1.6 1.1

Dividend yield (%) 9.5 5.0 3.5 3.8 2.7 2.4 3.5 3.9 3.9 4.1

Total return index* 1,026.0 1,440.9 2,853.9 3,315.6 4,462.9 6,470.7 6,508.0 5,575.3 5,944.9 4,311.4

Change in index (%)51.2 40.4 98.1 16.2 34.6 45.0 0.6 −14.3 6.6 −27.5

Economic Data


27,527 30,307 34,635 41,833 45,452 49,692 59,348 68,570 77,082 78,025


17.0 26.0 21.8 15.4 12.7 11.4 8.2 7.4 6.1 −


294.110 336.860 374.870 382.330 431.040 401.050 406.650 424.350 438.500 473.250


259.331 298.544 349.141 362.693 404.720 419.709 396.791 412.226 419.216 460.441

Notes: The base date for the IGPA Index is Dec. 1980=100. The base date for the IFCG Chile Index is Dec. 1984=100. In calculating share oftotal market cap, IFCG market cap is not adjusted for cross holdings.

China

Market Performance

Chinese shares in Shanghai, Shenzhen, and Hong Kong suffered large losses in 1998, rocked by financial marketvolatility in Asia. Anxiety over China's slowing economic growth and corporate profits, coupled with nervousnessover the Chinese yuan and pressure on the Hong Kong currency (which is pegged to the U.S. dollar), draggedprices of all classes of shares lower. The IFCI China Index, composed of B−shares (listed in Shanghai orShenzhen), and H−shares and "red chips" (listed in Hong Kong) posted a 53% loss in 1998, mirroring lossesthroughout the region. On November 2, Hong Kong red chips were added to the IFC China Index.

Ripples from the Asian crisis were felt from the beginning, as Hong Kong's Peregrine Investment Holdingsbecame the next casualty in the Asian financial crisis, prompting the Hang Seng Index to decline 8.7% on January12. Chinese shares, reacting to a regional spurt in February, surged 37.5% in IFCI terms in the second month onoptimism that the crisis would leave China unscathed. In Hong Kong, lower interest rates provided a boost toH−shares, as the three−month interbank rate was lowered to a four−month low of 7.14% in February from morethan 14% in January.

After rallying in February, the downtrend resumed through September on intermittent rumors that Chineseauthorities would competitively devalue the Chinese yuan to improve exports. Fear that a recession in Japanwould have global repercussions prompted foreign investors to distance themselves. China's exports dropped by1.5% in May, unnerving investors because it was the first monthly decline in 22 months. Meanwhile, foreigninvestable B−shares, which had languished from poor liquidity, were revived for a short stint in May followingmotions by the government to approve Sino−foreign mutual funds. Yet trading remained cautious, even afterChina cut bank−lending rates by 1.12 percentage points on July 1 and reduced bank deposit rates by 0.5percentage points. In August, turbulence in Hong Kong stocks pummeled China shares, as the Hong Kong


China 238

government spent more than U.S. $12.5 billion from its U.S. $96.5 billion reserves to boost Hong Kong shares.Hong Kong's deviation from a long tradition of not intervening in financial markets accentuated the severity of theregional crisis. Meanwhile, A−shares (reserved for Chinese investors) tumbled on fear about the catastrophicfloods along the Yangtze River, the country's worst since 1954.

Vigorous fiscal spending and an ease in the money supply helped China to achieve economic growth of 7.8% in1998, slightly below the 8% target. While a buoyant U.S. market helped spur a buying spree in late September,the close of Guangdong International Trust and Investment Corp. (GITIC) on October 6 quickly cast a shadow onthe market. The GITIC bankruptcy, after failing on an $8.8 billion bond payment, aroused fears about thefinancial health of "ITICs" and banks. (The nation's 242 itics—international trust companies—were created toborrow foreign currency from international banks and lend on behalf of city and provincial governments.) Stocksquivered on the central bank's order requiring all firms to repatriate unauthorized foreign currency abroad byOctober 30 to shore up the nation's $140 billion reserves.

In the final days, China passed its first comprehensive securities law, effective July 1, 1999. The law covers allaspects of the industry, ranging from stock trading to the operation of stock exchanges and securities firms, and itconsolidates regulatory authority with the Chinese Securities Regulatory Commission.break


IFCI China Index Correlation(5−year period ending 12/98)



China 239




Exchange Rate(yuan per U.S. dollar)

China 1998:(Currency in Millions)


Number ofListedCompanies

Total 751 757 763 776 792 811 814 820 829 837 845 853


In yuan 1,765,4611,741,7741,796,9332,026,0472,172,9092,091,9092,094,7491,843,6162,031,7611,997,6212,062,9951,915,088

In U.S.dollars

213,259 210,387 217,039 244,754 262,451 252,655 252,992 222,659 245,441 241,323 249,208 231,322

Trading Value

In yuan 168,492 114,453 166,541 340,353 311,074 249,805 167,600 145,270 202,171 178,198 214,358 99,237

In U.S.dollars

20,353 13,825 20,115 41,116 37,573 30,171 20,242 17,545 24,423 21,527 25,894 11,987

Turnoverratio (%)

9.7 6.5 9.4 17.8 14.8 11.7 8.0 7.4 10.4 8.8 10.6 5.0


China 1998: (Currency in Millions) 240

Local Index

SSE CompositeIndex*

1,222.9 1,206.5 1,243.0 1,343.4 1,411.2 1,339.2 1,316.9 1,150.2 1,242.9 1,217.3 1,247.4 1,146.7

Change inindex (%)

2.4 −1.3 3.0 8.1 5.0 −5.1 −1.7 −12.7 8.1 −2.1 2.5 −8.1

IFC GlobalIndex

Number ofstocks

195 195 195 195 195 195 195 195 195 195 214 214

Share ofmarket cap.(%)*

37.6 38.0 37.4 34.8 33.3 31.4 30.7 29.9 28.9 28.2 45.4 44.9

Share oftradingvalue (%)

24.4 26.4 29.9 26.0 24.8 22.2 21.1 20.3 21.7 20.8 41.5 36.7

P/E ratio 34.4 34.5 35.0 36.3 31.5 28.3 27.6 24.8 28.4 27.4 25.8 23.8

P/BV ratio 3.9 3.9 3.9 4.1 3.7 3.3 3.2 2.7 2.5 2.4 2.2 2.1

Dividendyield (%)

1.3 1.3 1.3 1.3 1.2 1.5 1.4 1.1 1.1 1.1 0.8 0.9

Total returnindex*

137.0 137.2 138.7 144.6 148.3 133.6 129.9 112.6 118.8 114.6 117.0 107.2

Change intotal returnindex (%)

−1.1 0.1 1.1 4.3 2.5 −9.9 −2.8 −13.3 5.5 −3.5 2.1 −8.4

Economic Data

Exchange rate(end of period)

8.2785 8.2789 8.2793 8.2779 8.2793 8.2797 8.2799 8.2800 8.2780 8.2778 8.2782 8.2789

Notes:The base date for the Shanghai Composite Index is Dec. 19, 1990=100. The base date for the IFCG China Index is Dec. 1992=100. Market cap and value traded figures combined both Shanghai and

Shenzhen stock exchanges. The IFC Indexes are comprised of Chinese A−, B−, and H−class shares until November 1998 when Hong Kong "red chips" were added. China H−class shares and the HongKong "red chips" are listed on the Stock Exchange of Hong Kong. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Shanghai Stock ExchangeTu Guangshao, President

528 Dudongnan RoadShanghai, PRC 200120ChinaTel: (86−21) 6880−8888Fax: (88−21) 6880−7813http://www.sse.com.cn

Shenzhen Stock ExchangeGui Min Jie, President

5045 Shennan East RoadShenzhen, PRC 518010ChinaTel: (86−755) 208−3333, 208−3570Fax: (86−755) 208−3112http://www.sse.org.cn

IFC Correspondent:Stock Exchange Executive Council

4th Fl., Tongguang Jindu Ofc.Bldg. c/o Shui Zhui 2 Post OfcBeijing 100026ChinaTel: (86−10) 6508−5854Fax: (86−10) 6500−8011, 500−7702


China 1998: (Currency in Millions) 241

http://www.sse.com.cn

http://www.sse.org.cn

China 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Total − − 14 52 183 291 323 540 764 853


In yuan − − 11,019 105,000 352,934 367,585 349,791 943,981 1,708,630 1,915,088

In U.S. dollars − − 2,028 18,255 40,567 43,521 42,055 113,755 206,366 231,322

Trading Value *

In yuan − − 4,366 92,177 375,571 840,775 415,580 2,128,478 3,063,656 2,357,553

In U.S. dollars − − 820 16,715 43,395 97,526 49,774 256,008 369,574 284,766

Turnover ratio (%) − − − 158.9 164.0 233.4 115.9 329.0 231.0 130.1

Local Index

SSE Composite* − 100.0 292.8 780.4 833.8 647.9 555.2 917.0 1194.1 1146.7

Change in index (%) − − 192.8 166.5 6.8 −22.3 −14.3 65.2 30.2 −4.0

IFC Global Index

Number of stocks − − − 61 81 117 149 180 195 214


− − − 91.3 47.3 44.2 58.5 51.8 38.9 44.9

P/E ratio − − − − 57.3 20.1 16.7 27.8 34.5 23.8

P/BV ratio − − − − 4.8 1.3 1.0 2.1 3.9 2.1

Dividend yield (%) − − − − 0.2 2.3 3.2 0.8 1.3 0.9

Total return index* − − − 100.0 92.7 62.1 54.4 104.2 138.5 107.2

Change in index (%) − − − − −7.3 −33.0 −12.4 91.5 32.9 −22.6

Economic Data


China 1989−1998: (Currency in Millions; End of Period Levels) 242


342,292 354,644 376,617 418,181 431,780 542,534 700,219 816,490 901,981 −


18.3 3.1 3.5 6.3 14.6 24.2 16.9 8.3 2.8 −


− − 5.4342 5.7518 8.7000 8.4462 8.3174 8.2984 8.2796 8.2789


− − 5.3234 5.5146 8.6548 8.6210 8.3494 8.3141 8.2897 8.2789

Notes: The base date for the Shanghai Composite Index is Dec. 19, 1990=100. The base date for the IFCG China Index is Dec.1992=100. Market cap and value traded figures combined both Shanghai and Shenzhen stock exchanges. The IFC Indexes arecomprised of Chinese A−, B−, and H−class shares until November 1998 when Hong Kong "red chips" were added. China H−classshares and the Hong Kong "red chips" are listed on the Stock Exchange of Hong Kong. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings.

Colombia

Market Performance

Colombian equities suffered heavy losses in 1998, depressed by interest rates at 13−year highs, the devaluation ofthe peso, and a collapse in emerging markets investor confidence following the August Russian loan default. Apresidential victory by former Bogota mayor and business community favorite, Andres Pastrana, provedinsufficient to curb losses, as the dollar−based IFCI and IFCG indexes closed down 46.8% and 43.6%,respectively, for the year. Lack of foreign investor confidence in Colombia stifled trading on the country's threestock exchanges, while better returns on fixed−income investments lured domestic investors away from equities.GDP grew 0.2% in 1998 compared to 3.1% in 1997, while inflation narrowly edged down from 17.7% to 16.7%for the same period. Guerilla violence continued unabated with peace talks aimed at putting an end to thedecades−old civil war commencing in early 1999.

Bank, cement, and retail company shares led the Colombian market lower in the first quarter of 1998, as highinterest rates sapped demand for loans and increased company borrowing costs. The central bank's policy ofsuccessive interest rate hikes aimed at halting the peso's slide hurt equity trading early−on, as the IFCI ColombiaIndex closed down 25.0% in the first quarter. In company news, Brewer Bavaria separated its beverage andinvestment interests, listing separate shares on Colombian stock markets in January, while Banco IndustrialColombiano (BIC) completed its purchase of a 51% stake in Banco de Colombia, forming the country's largestbank, BanColombia.

Uncertainty over the outcome of the May 31 presidential elections and postponement of a share issuance by thecountry's largest cellular service provider, Cellumovil, drove the market down further in the second quarter, as theIFCI Index shed an additional 10.8%. Lacking the necessary majority to win the May 31 presidential elections,candidates proceeded to a run−off in June, with Andres Pastrana narrowly defeating liberal party candidateHoracio Serpa. Banco Ganadero declined an offer by Spain's Banco Bilbao Viscaya to boost its equity stake inGanadero, a move analysts believed would make the stock less liquid. Retailer Exito's shares declined because ofits failed attempt to increase its stake in rival retailer Cadenalco.


Colombia 243

A loss of confidence in emerging markets stemming from the August Russian ruble devaluation crushed theBogota bolsa in the third quarter of the year as the IFCI Index plunged 37.5%. Foreign funds exited the country'sexchanges in Bogota, Medellin, and Cali in droves, as panicked investors sought refuge in developed countrybond and equity markets. The September 2 announcement of a peso devaluation punished the market even further,bringing the local IBB Index to its lowest levels since December 1996. Blue−chip companies also fell on bleakprospects for company earnings and a slow−down in economic growth.

Renewed buying from foreign and institutional investors in November, combined with $2 billion in 1999 loancommitments to Colombia from the IMF and the World Bank, lifted the market in the fourth quarter of the year asthe IFCI Index posted a hefty gain of 27.3%. Retailers Cadenalco and Exito led the market boom early in thequarter on expectations of strong Christmas sales while blue chips Bavaria and Banco Bogota rose on favorablethird−quarter profits.break


IFCI Colombia Index Correlation(5−year period ending 12/98)



Colombia 244





Colombia 1998:(Currency in Millions)

Notes: From 1995, number of listed companies, market cap and value traded figures are for the combined Bogota, Medellin, and Calistock exchanges. Prior to that, the data include only Bogota. The base date for the Bogota Stock Exchange's IBB Index is Jan. 1991=100.The base date for the IFCG Colombia Index is Dec. 1984=100. In calculating shares of total market cap, IFCG market cap is not adjustedfor cross holdings. Share of trading value in December 1998 decreased substantially due to trading totaling 450,000 million Colombianpesos of non−index stocks.


Colombia 1998: (Currency in Millions) 245

Bogota Stock ExchangeAugusto Acosta Torres,PresidentCarrera 8, No. 13−82Piso 4Santa Fe de BogotaColombiaTel: (57−1) 243−6501,243−6502Fax: (57−1) 281−3170http://www.bolsabogota.com.co

Medellin Stock ExchangeMr. Christian Toro Ludeke,PresidentEdificio Bolsa de MedellinCarrera 50, No. 50−48Medellin, AntioquiaColombiaTel: (57−4) 260−3000Fax: (57−4) 251−1981http://www.bolsamed.com.co

Occidente Stock ExchangeMr. Julian Dominguez Rivera,PresidentCalle 10 #4−40, Piso 13Edificio Bolsa de OccidenteColombiaCaliColombiaTel: (57−2) 889−8400Fax: (57−2) 889−9435,889−8731http://www.bolsadeoccidente.com.co

IFC Correspondent:Corredores Asociados S.A.Carrera 7 No. 71−52Torre B Piso 16Sante Fe De Bogota, D.C. 1ColombiaTel: (57−1) 312−3100Fax: (57−1) 312−2788http://www.corredores.com

Colombia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Total 82 80 83 80 89 113 190 189 189 163

MarketCapitalization *

In pesos 480,531 740,673 2,846,9294,611,8187,499,83711,665,54117,727,77617,241,60525,322,92420,670,361

In U.S. dollars 1,136 1,416 4,036 5,681 9,237 14,028 17,893 17,137 19,529 13,357

Trading Value *

In pesos 28,092 34,389 126,557 420,709 596,047 1,811,394 1,145,770 1,408,685 2,164,116 2,197,875

In U.S. dollars 74 71 203 554 732 2,191 1,254 1,360 1,894 1,539

Turnover ratio (%) 6.5 5.6 7.1 11.4 9.8 18.9 7.8 8.1 10.2 9.6

Local Index

IBB* 975.9 1,392.3 // 358.1 499.9 749.1 889.9 755.0 844.1 1,431.7 1,109.2

Change in index (%) 11.9 42.7 − 39.6 49.8 18.8 −15.2 11.6 69.6 −22.5


Colombia 1989−1998: (Currency in Millions; End of Period Levels) 246

http://www.bolsabogota.com.co

http://www.bolsamed.com.co

http://www.bolsadeoccidente.com.co

http://www.corredores.com

IFC Global Index

Number of stocks 20 20 20 20 20 25 25 27 27 24


90.5 94.5 91.8 89.9 75.3 81.5 47.6 61.8 67.4 55.3

P/E ratio 5.3 8.4 40.1 27.9 25.5 19.5 11.3 10.4 15.5 11.8

P/BV ratio 0.7 0.8 2.3 1.7 1.8 1.4 1.0 0.8 1.1 0.8

Dividend yield (%) 7.0 7.6 2.3 1.9 1.9 1.7 2.6 3.1 2.9 5.1

Total return index* 389.8 535.9 1,561.1 2,171.6 2,925.4 3,770.7 2,874.5 3,106.0 3,978.1 2,358.6

Change in index (%) 12.2 37.5 191.3 39.1 34.7 28.9 −23.8 8.1 28.1 40.7

Economic Data


39,536 40,270 41,485 49,215 55,800 70,154 80,533 85,850 95,745 91,108


25.8 29.1 30.4 27.0 22.6 23.8 21.0 20.2 18.5 −


423.090 523.000 705.410 811.770 811.900 831.600 990.750 1006.095 1,296.650 1,547.500


381.828 485.375 622.164 759.433 814.420 826.745 913.893 1035.651 1,142.334 1,427.992

Notes: From 1995, number of listed companies, market cap and value traded figures are for the combined Bogota, Medellin, and Cali stockexchanges. Prior to that, the data includes only Bogota. The base date for the Bogota Stock Exchange's IBB Index is Jan. 1991=100. Thebase date for the IFCG Colombia Index is Dec. 1984=100. Prior to 1991, the General Index was used for local index data. In calculatingshares of total market cap, IFCG market cap is not adjusted for cross holdings. Share of trading value in December 1998 decreasedsubstantially due to trading totaling 450,000 million Colombian pesos of non−index stocks.

Cote d'Ivoire

Market Performance

Despite a less than stellar finish by West African shares, the year could only be considered a success judging bythis year's returns among emerging markets. After months of low turnover and illiquidity, the announcement ofthe opening of the new West African regional bourse finally brought renewed hope to investors in Cote d'Ivoire.The net affect was a 4.4% gain in the dollar−based IFCG Cote d'Ivoire Index for 1998.

Equity returns in the first quarter of the year were mixed, as Ivorian shares drifted lower in January amidconfusion over the official closure of the Abidjan Stock Exchange on December 31 and delays in the opening ofthe new West African regional exchange. The IFCG Index shed 4.6% early on, while the local BVA All−ShareIndex dipped 1.7%, as profit taking and concerns surrounding the new exchange caused shares to fall. The marketmanaged to register a mixed performance in March as losses in some select shares and a weaker currencycountered gains in other issues. The signing of a new, three−year IMF−World Bank loan package worth nearly$2.2 billion did little to bolster interest in stocks.


Cote d'Ivoire 247

While second quarter results were positive, the resignation of the chief executive of the regional exchangeovershadowed other market news during the period. International investors remained on the sidelines as concernsgrew regarding delays in the opening of the West African exchange. Still, the local BVA Index managed to gain amodest 2.1% in June while the IFCG Index gained 2.2% in dollar terms.

September proved to be the highlight of the year, as stocks rose in the first few weeks of trading on the newregional stock exchange. The new Bourse Régionale des Valeurs Mobilières, or BRVM, finally opened onSeptember 16. Although the 35 original stocks from the old bourse comprised the initial listings, the exchangeintends to eventually include companies from Benin, Burkina Faso, Guinea−Bissau, Mali, Niger, Senegal, andTogo.

Concern regarding the limited free float available to foreign and local investors resulted in lower−than−expectedreturns on the BRVM during the fourth quarter. November proved to be an especially difficult month as theBRVM All−Share Index shed 9.9% in local currency terms and the IFCG Index declined 19.9% in dollars. Localanalysts attributed the sharp drop to profit−taking, low liquidity, and selling by small investors to pay school feesat the start of the school year. A rule change at year's end allowing operators to conduct transactions throughaccredited brokers without going through the computerized order matching system brought about large increasesin trading volumes and solid returns. Previously, block trading needed to be approved by the BRVM and couldonly be conducted at the price fixed by the previous day's closing session. This new rule, along with thegovernment's announcement to sell its stake in nine companies already listed on the BRVM, set the stage forstrong market returns going into 1999.break

Monthly Value Traded IFCG Cote d'Ivoire Index Correlation IFCG P/E Ratio


Cote d'Ivoire 248

(US$ millions) (36−month period ending 12/98) (end of month values)



Exchange Rate(CFA francs per U.S. dollar)

Cote d'Ivoire 1998:(currency in Millions)



BRVM 35 35 35 35 35 35 35 35 35 35 35 35


In CFA francs 736,898 759,014 759,122 774,295 771,388 795,675 777,978 785,520 892,704 1,121,3751,016,3321,018,934

In US dollars 1,197.2 1,248.5 1,225.5 1,287.5 1,305.2 1,315.1 1,304.2 1,306.5 1,594.4 2,023.8 1,792.0 1,817.9

Trading Value

In CFA francs 575.0 614.0 3,078.0 1,691.0 1,060.0 1,933.0 1,003.0 1,353.2 1,516.5 2,871.0 1,878.0 5,411.1

In US dollars 0.9 1.0 5.0 2.8 1.8 3.2 1.7 2.3 2.7 5.2 3.3 9.7

Turnover ratio (%) 0.2 0.1 0.4 0.2 0.1 0.3 0.1 0.2 0.2 0.3 0.2 0.5

Local Index

BRVM All−Share* 430.3 435.4 440.9 456.8 472.9 482.9 492.0 497.9 // 107.3 108.5 97.8 98.0


Cote d'Ivoire 1998: (currency in Millions) 249

Change in index (%)−8.8 1.2 1.3 3.6 3.5 2.1 2.1 1.0 − 1.1 −9.9 0.3

IFC Global Index

Number of stocks 12 11 11 11 11 11 11 11 11 11 11 12


96.0 66.1 64.5 67.6 62.9 68.0 66.1 66.4 65.7 51.6 47.1 70.5


70.2 78.6 80.1 65.2 57.1 38.2 83.3 53.1 76.8 48.1 30.8 26.0

P/E ratio 9.0 9.4 9.2 9.9 9.1 9.6 9.0 9.2 10.4 10.4 8.4 8.5

P/BV ratio 3.0 3.1 3.0 3.2 3.0 3.1 3.0 3.0 3.4 3.4 2.8 2.8

Dividend yield (%) 0.0 0.0 0.0 3.2 2.4 5.2 6.4 6.3 5.6 5.6 6.9 4.5



−3.7 5.1 −4.4 14.3 −1.7 5.5 −2.8 0.8 20.7 −0.1 −19.7 1.8

Exchange Rates


615.500 607.925 619.420 601.400 591.020 605.040 596.500 601.250 559.900 554.100 567.150 560.500

Notes: In September 1998, IFC switched from the BVA Index to the BRVM All−Share Index. The base date for the BRVM All−Share Indexis Sept. 16, 1998=100. The base date for the IFCG Cote d'Ivoire Index is Dec. 1995=100. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings.

Abidjan Stock ExchangeMr. Leon Naka, ChairmanBourse Régionale des Valeurs Mobilières S.A.18, avenue Joseph Anoma01 BP 3802 AbidjanCote d'IvoireTel: (225) 326685, 326686Fax: (225) 326684

IFC Correspondent:Hudson FinanceImmeuble MACI, 3eme étage/18 BPAbidjan, 18Cote d'IvoireTel: (225) 33−2233Fax: (225) 33−2224

Cote d'Ivoire 1989−1998:(Currency in Millions; End of Period Levels)


Cote d'Ivoire 1989−1998: (Currency in Millions; End of Period Levels) 250

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


BVRM 23 23 25 27 24 27 31 31 35 35


In CFA francs 153,630.0140,729.0140,000.0131,000.0122,000.0224,000.0425,000.0475,490.0738,635.01,018,934.0

In US dollars 530.9 548.8 540.5 482.5 413.9 428.3 866.4 914.4 1,276.0 1,817.9

Trading Value

In CFA francs 1,640.0 5,032.0 1,909.0 1,143.0 1,606.8 6,400.0 7,050.0 9,947.0 14,216.0 22,983.8

In US dollars 5.1 18.5 6.8 4.3 5.7 11.6 14.1 19.5 24.3 39.0

Turnover ratio (%) 1.1 3.4 1.4 0.8 1.3 3.7 2.2 2.2 2.3 2.6

Local Index

BRVM All−Share* 106.9 103.7 102.2 62.9 90.5 125.6 277.2 357.8 437.6 // 98.0

Change in index (%) 1.7 −3.0 −1.4 −38.5 43.9 38.8 120.7 29.1 22.3 −

IFC Global Index

Number of stocks − − − − − − 8 8 11 12


− − − − − − 70.7 71.8 64.2 70.5

P/E ratio − − − − − − − 8.4 8.8 8.5

P/BV ratio − − − − − − − 2.3 2.9 2.8

Dividend yield (%) − − − − − − − 4.8 0.0 4.5



− − − − − − − 10.7 −10.6 10.8

Economic Data


9,757 10,796 10,493 11,153 10,405 7,666 9,992 10,700 10,251 −


Cote d'Ivoire 1989−1998: (Currency in Millions; End of Period Levels) 251


1.0 −0.8 1.7 4.2 2.2 26.1 14.3 2.5 5.6 −


289.400 256.450 259.000 271.490 294.775 523.000 490.550 519.980 578.850 560.500


319.007 272.260 282.106 264.690 283.160 550.000 499.150 510.131 584.825 589.260

Notes: In September 1998, IFC switched from the BVA Index to the BRVM All−Share Index. The base date for the BRVM All−Share Indexis Sept. 16, 1998=100. The base date for the IFCG Cote d'Ivoire Index is Dec. 1995=100. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings.

Croatia

Market Performance

The Croatian equity market finished 1998 with hefty losses as the dollar−based IFCG Croatia Index dropped34.4% and the kuna−based CROBEX Index dropped 33.8%. Share price movements were choppy throughout theyear, mirroring volatility on world bourses caused by the Asian crisis. The market plunged by about 40% inAugust as a result of the Russian debt moratorium and ruble collapse, but a recovery began in September thatcontinued through year's end.

On April 7, 1998, IFC announced the launching of the IFCG Croatia Index, along with new indexes for Estonia,Latvia, Romania, and the Ukraine. The IFCG Croatian Index has eight stocks with an initial market capitalizationof $1.76 billion. The market is dominated by pharmaceutical group Pliva and Zagrebacka Banka, which representabout 65% of market capitalization and liquidity. The market's development thus far has been impeded by a lackof other well−capitalized stocks but, according to many analysts, future growth in capitalization and liquidity willbe fueled by a market full of hidden opportunities.

Several developments in early 1998 began to set the stage for future market development. In January, the statebegan distributing free privatization vouchers for 450 state−owned firms worth some $2 billion. On February 17,Croatia's central depository agency announced that 14 issuers would transfer share registering responsibilities tothe electronic clearing and settlement agency. This was seen as a positive development in the market wheretransactions sometimes drag on for weeks and share certificates are issued by individual companies. In March, theZagreb bourse launched an upgraded and fully−automated trading system to enable automated matching of ordersand allow for continuous trading. In spite of the positive news, however, trading was sluggish in March due to alack of capital inflow. Local activity mostly mirrored movements in London, where GDR issues of Pliva andZagrebacka Banka trade.


Croatia 252

A significant drop in the market in April was attributed to the decline in Zagrebacka Banka, which fell onunfavorable 1997 earnings results. Share prices continued to slide in the following months amid ongoing politicaltensions. Conflicts between nationalists and reformers slowed down the privatization process considerably anddepressed market sentiment.

The summer lethargy of July came to an abrupt end in August, precipitated by the financial crisis in Russia, whichpushed Croatian equities into a free fall with the IFCG Index plummeting 41.3% over the month. Russia has beenCroatia's sixth largest export market and fifth largest provider of imports. Fortunately, Pliva's conservativepolicies toward Russia didn't leave the company with a high level of exposure, and this helped to pull the marketup in September and stabilize it in October.

The IFCG Index jumped 15% in November on a wave of gains on global markets. The ZSE approved the fulllisting of food conglomerate Podravka. It opens the way for Podravka GDRs to be listed on the London StockExchange. The board of Ericsson Nikola Tesla turned down a proposal to list the company's shares on the ZagrebStock Exchange. The market was mostly quiet and flat at year's end.break


IFCG Croatia Index Correlation(12−month period ending 12/98)



Croatia 253




Exchange Rate(kuna per U.S. dollar)

Croatia 1998:(Currency in Millions)



Zagreb StockExchange

45 45 47 47 50 49 48 48 49 50 50 50


In kuna 26,037.2 28,338.1 27,539.2 25,676.0 21,806.3 22,039.5 21,488.3 17,335.2 17,848.6 16,940.5 18,485.1 19,978.4

In US dollars 4,043.7 4,420.8 4,242.9 3,992.4 3,378.7 3,411.7 3,351.1 2,665.3 2,889.0 2,754.5 2,903.3 3,190.2

Trading Value

In kuna 62.7 131.0 76.3 93.7 38.9 19.7 34.5 16.5 50.0 35.3 42.9 56.0

In US dollars 9.7 20.4 11.8 14.6 6.0 3.1 5.4 2.5 8.1 5.7 6.7 9.0

Turnover ratio (%) 0.0 0.5 0.3 0.3 0.2 0.1 0.2 0.1 0.3 0.2 0.2 0.3

Local Index


Croatia 1998: (Currency in Millions) 254

CROBEX* 913.9 1,025.6 1,028.4 933.6 824.8 824.8 794.0 462.8 561.1 601.0 705.9 711.6

Change in index (%)−1.7 12.2 0.3 −9.2 −11.6 0.0 −3.7 −41.7 21.2 7.1 17.4 0.8

IFC Global Index

Number of stocks 8 8 8 8 8 8 8 8 8 8 8 8


69.4 71.6 74.1 72.1 75.0 74.3 73.3 52.6 61.9 70.2 75.6 71.0


− 68.4 89.2 91.7 70.8 79.7 81.4 85.0 82.9 96.8 95.3 91.8

P/E ratio 23.8 26.1 24.1 21.6 17.2 12.4 11.8 6.9 7.8 8.5 10.1 11.1

P/BV ratio 1.7 1.8 1.8 1.6 1.4 1.4 1.3 0.8 0.9 1.0 1.1 1.3

Dividend yield (%) − − − − − − − − − − − 2.8



−10.2 10.4 −1.1 −9.5 −12.6 0.8 −3.0 −42.2 18.8 12.2 13.0 3.9

Exchange Rates


6.4390 6.4101 6.4907 6.4313 6.4541 6.4599 6.4124 6.5041 6.1781 6.1502 6.3670 6.2624

Notes: The base date for the CROBEX Index is July 1, 1997=1000. The base date for the IFCG Croatia Index is Dec. 1997=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings

Zagreb Stock ExchangeMr. Marinko Papuga, General ManagerZeljko Kardum, Public & Government RelationsKsaver 208Zagreb, 10000CroatiaTel: (385−1) 4677−684Fax: (385−1) 4677−680http://www.zse.hr

IFC Correspondent:CA IB SecuritiesPetrinjska #38Zagreb, 10000CroatiaTel: (385−1) 4811−144Fax: (385−1) 432−074

Croatia 1989−1998:(Currency in Millions; End of Period Levels)


Croatia 1989−1998: (Currency in Millions; End of Period Levels) 255

http://www.zse.hr

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Zagreb Stock Exchange − − − − − 29 61 66 77 50


In kuna − − − − − 2,893.0 3,087.6 16,475.2 26,760.4 19,978.4

In US dollars − − − − − 513.9 580.8 2,974.5 4,245.7 3,190.2

Trading Value

In kuna − − − − − 1,510.0 244.5 1,230.6 2,094.7 657.7

In US dollars − − − − − 251.8 46.8 226.5 343.3 104.0

Turnover ratio (%) − − − − − − 8.2 12.6 9.7 2.8

Local Index

CROBEX* − − − − − − − − 1,002.1 715.8

Change in index (%) − − − − − − − − − −28.6

IFC Global Index

Number of stocks − − − − − − − − 8 8

Share of market cap. (%)* − − − − − − − − − 71.0

P/E ratio − − − − − − − − − 11.1

P/BV ratio − − − − − − − − − 1.3

Dividend yield (%) − − − − − − − − − 2.8

Total return index* − − − − − − − − 100.0 68.6


− − − − − − − − − −31.4

Economic Data


− − 12,355 9,942 11,693 14,226 18,081 19,081 − −

Change in consumer price 1,400.0 500.0 122.2 632.5 1,483.6 107.3 4.0 4.3 4.1 −


Croatia 1989−1998: (Currency in Millions; End of Period Levels) 256

index (%)


− − − − − 5.6290 5.3160 5.5400 6.3030 6.2624


− − − − − 5.9960 5.2300 5.4340 6.1010 6.3252

Notes: The base date for the CROBEX Index is July 1, 1997=1000. The base date for the IFCG Croatia Index is Dec. 1997=100.In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Czech Republic

Market Performance

Czech equities posted sizable losses in 1998, with the Prague Stock Exchange's PX−50 Index falling 20.4% inlocal currency terms and the IFCI and IFCG indexes falling 7.3% and 10.0%, respectively, in dollars. Despiteperiods of volatility, the Czech equity market mostly fluctuated through August when global financial marketturmoil, the Russian crisis, and signs of recession combined to depress Czech equity prices.

In January, political instability ahead of June parliamentary elections and signs of a slowing economy dominatedinvestor sentiment, and share prices dropped by more than 9%. Stocks suffered losses in spite of Parliament'sapproval of a law establishing a securities commission to oversee the nation's capital market. In February, investorsentiment became more positive as worries about the Asian crisis receded. The Czech government approvedNomura Europe's 9 billion koruna ($300 million) purchase of a stake in IPB in March. It also chose advisers forselling its stakes in other major banks. The IFCI Czech Index ended the quarter with a gain of 6.3%.

These measures sent out a positive signal and investors in the region began targeting relatively cheap stocks inPrague in April. However, turbulence in emerging markets and sharp declines across Eastern European exchangesin May added to the market's woes, which already included political risk due to the uncertain outcome of theupcoming June election. Equities posted significant losses. On May 21, a new market−maker−based system waslaunched on the Prague Stock Exchange. The system aims to concentrate liquidity in the organized market, ratherthan the less transparent over−the−counter system. Only four of the most liquid issues were allowed to trade onthe new system: Komercni Banka, Unipetrol, CEZ, and SPT Telecom. For the quarter, the IFCI Czeck Index fell7.1%.

Election results fueled a sharp rebound in Czech equities late in June, after right−wing parties unexpectedly won atwo−seat majority. The rally reversed three weeks of losses as the Russian financial crisis undermined investor


Czech Republic 257

confidence in emerging markets. But the Russian turmoil eventually took its toll in August when the IFCI Indexdropped 30.3% in dollar terms. Severe corrections on Wall Street contributed to the market's fall. As a result ofdevelopments in Russia, major Czech banks, such as Komercni Banka and Ceska Sporitelna, were severely hit.Ceska Sporitelna said it would need at least $32.5 million in additional provisions to cover potential losses fromRussian securities holdings. With the exception of bank stocks, the weakness in share prices during this period(the IFCI Index fell 20.6%) reflected little on the state of the domestic economy. In fact, the majority of blue chipsposted healthy half−year profits.

Stocks rebounded in October after the U.S. Federal Reserve Board cut interest rates. A subsequent cut in localrates supported the advances. However, after S&P downgraded its country rating in November due to lack ofprogress in bank restructuring, the deepening recession, and problems in the legal system, the stock market fellinto stagnation for the rest of the year. For the quarter, the IFCI Index rose 18.3%.break


IFCI Czech RepublicIndex Correlation(59−month period ending 12/98)





Exchange Rate(koruna per U.S. dollar)


Czech Republic 258

Czech Republic 1998:(Currency in Millions)



Prague StockExchange

275 274 273 273 273 272 271 271 270 266 263 261


In koruna 410,806 428,974 454,505 449,903 414,262 426,727 446,322 354,156 342,156 355,493 359,036 361,737

In U.S. dollars 11,639 12,618 13,281 13,688 12,566 13,076 14,487 10,895 11,305 12,257 11,799 12,045

Trading Value

In koruna 6,637 10,682 15,499 8,665 10,819 13,983 13,275 16,260 16,160 10,822 11,818 18,179

In U.S. dollars 188 314 453 264 328 428 431 500 534 373 388 605

Turnover ratio (%) 1.5 2.5 3.5 1.9 2.5 3.3 3.0 4.1 4.6 3.1 3.3 5.0

Local Index

PX−50* 455.7 477.4 505.0 500.9 454.0 467.0 491.3 377.4 359.8 388.3 389.5 394.2

Change in index (%)−8.0 4.8 5.8 −0.8 −9.4 2.9 5.2 −23.2 −4.7 7.9 0.3 1.2

IFC Global Index

Number of stocks 41 41 41 41 41 41 41 41 41 41 37 37


75.1 76.2 78.1 79.2 79.2 79.0 79.9 87.1 86.3 77.9 78.1 74.2


7.8 93.3 92.0 89.6 80.5 94.3 96.1 96.4 88.5 97.5 92.2 81.9

P/E ratio 31.7 31.9 34.5 24.7 23.4 23.3 43.5 39.0 −17.8 −15.8 −13.2 −11.3

P/BV ratio 0.8 0.8 0.9 0.8 0.8 0.8 0.8 0.8 0.8 0.7 0.7 0.7

Dividend yield (%) 3.0 2.9 2.6 3.6 2.9 1.4 2.3 2.5 2.8 3.1 2.9 3.2


−9.2 9.4 4.0 3.1 −7.4 0.7 12.6 −24.7 −0.5 10.7 −3.1 2.5


Czech Republic 1998: (Currency in Millions) 259


Exchange Rates


35.2970 33.9970 34.2225 32.8675 32.9675 32.6345 30.8085 32.5070 30.2655 29.0040 30.4305 30.0310

Notes: The base date for the PX−50 Index is Apr. 1994=1,000. The base date for the IFCG Czech Republic Index is Dec. 1993=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Prague Stock ExchangePavel Hollman, General SecretaryVladimir Ezr, Deputy Secretary GeneralRybna 14Praha 1, 110 05Czech RepublicTel: (42−02) 2183−1111Fax: (42−02) 2183−3040http://www.pse.cz/en

IFC Correspondent:Zivnostenska Banka a.s.Na Prikope 20Praha 1, 113 80Czech RepublicTel: (42−02) 2412−7212Fax: (42−02) 2412−7474

Czech Republic 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Prague Stock Exchange− − − − − 1,024 1,635 1,588 276 261


In koruna − − − − − − 417,689 492,188 443,320 361,737

In U.S. dollars − − − − − − 15,664 18,077 12,786 12,045

Trading Value

In koruna − − − − − 38,218 96,099 228,733 223,941 152,800

In U.S. dollars − − − − − 1,328 3,630 8,431 7,055 4,741


Czech Republic 1989−1998: (Currency in Millions; End of Period Levels) 260

http://www.pse.cz/en

Turnover ratio (%) − − − − − − − 50.3 47.9 38.0

Local Index

PX−50* − − − − − 557.2 425.9 539.6 495.3 394.2

Change in index (%) − − − − − − −23.6 26.7 −8.2 −20.4

IFC Global Index

Number of stocks − − − − 60 60 65 74 41 37


− − − − − − 65.1 79.7 75.4 74.2

P/E ratio − − − − 18.8 16.3 11.2 17.6 37.1 −11.3

P/BV ratio − − − − 1.3 1.0 0.9 0.9 0.8 0.7

Dividend yield (%) − − − − − 1.1 1.4 1.4 2.8 3.2

Total return index* − − − − 100.0 81.1 65.0 79.1 56.2 51.8

Change in index (%) − − − − − −18.9 −19.9 21.7 −29.0 −7.8

Economic Data


34,742 31,517 24,292 27,951 31,185 39,882 50,894 56,554 52,035 −


− − − − − − − − − −


− − − − − 28.1890 26.6660 27.2280 34.6735 30.0310


− − − − − 28.7824 26.4729 27.1314 31.7436 32.2284

Note: The base date for the PX−50 Index is Apr. 1994=1,000. The base date for the IFCG Czech Republic Index isDec. 1993=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Ecuador

Market Performance

Local equities suffered their worst losses since the inception of the IFCG Ecuador Index in December 1995,punished by record−low oil prices, two currency devaluations, and worries over a possible collapse of the bankingsystem. Lingering damage inflicted by the El Niño weather phenomenon as well as the Andean nation's inabilityto address its fiscal and current account deficits weighed heavily on the market all year, as the IFCG EcuadorIndex plummeted 36.9% in dollar terms. Despite brief rallies in trading following the election of Quito mayor


Ecuador 261

Jamil Mahuad to the presidency and a settlement in the long standing border dispute with Peru, the stock marketdeclined sharply throughout the course of the year. Economic growth slowed from 3.4% in 1997 to 1.3% in 1998,while the fiscal and current account deficits worsened to 4.2% and 11.2% of GDP, respectively. Annual inflationof 43.4% were the worst in the region.

Shares closed down in the first quarter of 1998 as heavy rains caused by El Niño disrupted fruit and vegetablecultivation and adversely affected the country's businesses and infrastructure. A government announcement citinga need for $2 billion in spending over the next ten years to repair damages caused by El Niño and the March 7.5%devaluation of the sucre dampened investor sentiment, helping the IFCG Index shed 8.1% for the quarter.

Equities continued their downward trend in the second quarter, as oil prices at 12−year lows pressured thecountry's fiscal and trade deficits. Oil accounts for approximately 25% of government revenue and 22% of exportearnings. Political uncertainty over the July run−off for the presidential elections also cast a shadow over themarket as the IFCG Index lost a further 11.3% during this period. The elections proceeded to a second round onJuly 12 after no clear victor emerged in the first round in May.

A change in presidential leadership proved insufficient to reverse losses in the third quarter, as a second sucredevaluation in September sent the dollar−based IFCG Index 11.7% lower. While the stock market greetedPresident Jamil Mahuad's July victory enthusiastically, gains proved ephemeral as the government devalued thecurrency by 15%. The introduction of an economic austerity package by President Mahuad sparked violentprotests from labor unions and indigenous groups forcing banking, brewery, and cement shares lower.

Investor concerns heightened in the fourth quarter following congressional approval of a 1% financial transactiontax to replace the moribund income tax scheme. High levels of income tax evasion have dealt a harsh blow to thecountry's domestic finances, forcing the government to enact revenue enhancement policies. While the transactiontax is expected to alleviate the government's fiscal shortfalls, underlying economic conditions continued todepress market sentiment. The IFCG Index closed down 12.3% for the quarter as leading banks cut credit lines,increasing worries of a banking crisis on the horizon.break


Ecuador 262


IFCG Ecuador Index Correlation(36−month period ending 12/98)





Exchange Rate(sucres per U.S. dollar)

Ecuador 1998:(Currency in Millions)


Number of Listed Companies

GuayaquilStockExchange

41 41 41 41 40 40 40 40 38 37 37 37


Ecuador 1998: (Currency in Millions) 263


In sucres 9,489,8629,585,7289,793,00710,240,14210,277,93510,266,66510,531,01310,761,7369,776,0649,900,2399,632,42410,467,184

In USdollars

2,096.1 2,108.9 2,003.9 2,016.1 1,975.3 1,946.7 1,964.4 1,969.8 1,603.4 1,471.5 1,490.0 1,526.7

Trading Value

In sucres 86,803.0 74,453.0 99,798.0 26,131.0 26,531.0 39,032.0 48,021.0 127,753.0 95,157.0 31,304.0 18,929.0 65,799.3

In USdollars

19.2 16.4 20.4 5.1 5.1 7.4 9.0 23.4 15.6 4.7 2.9 9.6

Turnoverratio (%)

0.9 0.8 1.0 0.3 0.3 0.4 0.5 1.2 0.9 0.3 0.2 0.6

Local Index

BVG* 214.5 223.5 233.2 233.7 232.1 225.0 229.4 237.4 228.8 225.5 223.0 223.1

Change inindex (%)

−0.9 4.2 4.3 0.2 −0.7 −3.1 1.9 3.5 −3.6 −1.5 −1.1 0.1

IFC GlobalIndex

Number ofstocks

12 12 12 12 12 12 12 12 12 12 12 12


59.0 60.7 67.4 61.9 65.6 62.2 62.6 61.8 66.6 64.7 65.9 61.5


75.0 27.5 77.1 87.6 43.2 62.3 77.5 61.0 92.7 67.9 87.8 48.3

P/E ratio 14.9 15.4 2.9 2.8 2.9 3.9 4.0 4.1 4.0 6.9 6.8 6.6

P/BV ratio 1.8 1.8 2.1 2.0 2.1 1.6 1.7 1.7 1.7 1.5 1.4 1.2

Dividendyield (%)

4.8 5.5 10.8 10.1 9.5 9.7 10.8 9.7 9.9 10.2 10.3 10.2

Totalreturnindex*

87.5 91.5 86.9 80.3 82.6 77.2 79.6 78.9 69.2 62.5 64.4 60.8

Change in total returnindex (%) −1.4

4.6 −5.0 −7.6 2.9 −6.6 3.1 −0.9 −12.3 −9.7 3.1 −5.6

ExchangeRates


Ecuador 1998: (Currency in Millions) 264


4,527.42 4,545.39 4,887.00 5,079.10 5,203.30 5,274.00 5,360.83 5,463.23 6,096.97 6,727.97 6,464.70 6,856.17

Notes:The base date for the BVG Index Jan. 3, 1994=100. The base date for the IFCG Ecuador Index is Dec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Guayaquil Stock ExchangeEnrique Arosemena, Chief Executive Officer

Luis Alvarez, Director of Operations9 de octubre110 y PichinchaGuayaquilEcuadorTel: (593−4) 564−304, 561−519Fax: (593−4) 561−871http://www4.bvg.fin.ec/eng

Stock Exchange of QuitoGonzalo Chiriboga Chavez, President

Mr. Arturo Quiroz Riumallo, Executive OfficerAv. Amazonas 540 y CarrionPiso 8Quito 3772EcuadorTel: (593−2) 526−805, 551−837Fax: (593−2) 526−048http://www.ccbvq.com

IFC Correspondent:Guayaquil Stock Exchange

9 de octubre110 y PichinchaGuayaquilEcuadorTel: (593−4) 564−304, 561−519Fax: (593−4) 561−871

Ecuador 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Guayaquil StockExchange

− − − 65 142 145 40 42 41 37


In sucres − − − 128,828.02,171,259.95,664,301.97,680,973.07,062,168.09,481,380.010,467,184.0

In US dollars − − − 69.4 1,097.8 2,496.4 2,631.4 1,945.5 2,127.8 1,526.7

Trading Value

In sucres − − − − 266,491 1,060,951 600,789.2 384,070.0 744,240.0 739,711.3

In US dollars − − − − 134.7 467.6 234.3 120.4 186.1 135.3

Turnover ratio (%) − − − − 23.2 27.1 9.0 5.2 9.0 7.4

Local Index

BVG* − − − − − 174.6 154.4 198.8 217.5 223.1

Change in index (%) − − − − − − −11.6 28.8 9.4 2.6


Ecuador 1989−1998: (Currency in Millions; End of Period Levels) 265

http://www4.bvg.fin.ec/eng

http://www.ccbvq.com

IFC Global Index

Number of stocks − − − − − − 11 11 12 12


− − − − − − 58.7 62.1 59.0 61.5

P/E ratio − − − − − − − 12.2 14.8 6.6

P/BV ratio − − − − − − − 2.4 1.8 1.2

Dividend yield (%) − − − − − − − 6.0 4.9 10.2



− − − − − − − −8.3 −3.2 −31.5

Economic Data


9,824 10,685 11,752 12,656 14,304 16,606 17,939 19,040 19,768 19,766


75.6 48.5 48.8 54.3 45.0 27.4 22.9 24.4 30.6 −


− − − 1,857.5001,977.850 2,269.000 2,919.000 3,630.000 4,456.000 6,856.170


− − − 1,533.9601,941.525 2,198.000 2,564.500 3,190.175 3,998.669 5,465.744

Notes: The base date for the BVG Index Jan. 3, 1994=100. The base date for the IFCG Ecuador Index is Dec. 1995=100. In calculating shareof total market cap, IFCG market cap is not adjusted for cross holdings.

Egypt

Market Performance

While Egyptian equities fell prey to the contagion affecting most emerging markets in 1998, domestic factorswere equally if not more at play. For the year, the dollar−based IFCI Egypt Index fell 35% while the EFG Indexfell 25.4% in pound terms.

Volatility in Asian markets in early 1998 spilled over to international markets, where many Egyptian GDRs aretraded, and had a significant impact on local prices. The Iraqi crisis in February also contributed to investorunease. Domestically, upcoming IPOs drew liquidity from the Egyptian Stock Exchange (ESE) as local investorssold shares to raise cash. Falling profit margins on luxury flour had an impact on the milling sector that was feltthroughout 1998. Another significant contributor to Egyptian price declines was the government's decision toclose a popular tax loophole. The old law allowed the deduction of interest expenses from taxable income, whilealso allowing interest earned on Treasury bills to count as tax−exempt income. Analysts feared that the law wouldhurt 1998 bank earnings, and it destabilized that sector for much of the first half of the year.


Egypt 266

After two months of declines, the trend reversed in March. Egyptian milling companies and banks strengthenedslightly from bargain−hunting, and the insurance sector gained following the passage of a law aimed at allowing agreater level of foreign investment in local insurance companies.

Egyptian shares posted their sharpest losses in the second quarter, dropping more than 17% in the investableseries. In the period beginning April 3 and ending August 28, the IFCI Index recorded just four weekly gains. Thelack of foreign investor confidence that plagued emerging markets following a rout in May translated into lightlocal activity as well, and prices mostly drifted until September. The largest decline took place in August whenIFCI Egypt fell 12% in price terms. The Egyptian exchange performed better than most other markets tracked bythe IFC, however, possibly because Egypt's stock prices were already seen as depressed.

A general cooling of the emerging market−led panic benefited stocks in September and the IFCI Index gained7%. Perception that Middle Eastern markets had been relatively unscathed by the global meltdown helpedunderpin the gains. Prices rallied strongly early in the month after the entry of several new funds spurred buying.News that the government plans to invite experts to assist in promoting and underwriting state asset sales alsoencouraged investors. The government announced plans to sell further stakes in partially privatized firms in aneffort to deepen its asset sales program.

In October, Sherif Raafat announced that he would resign as chairman of the Cairo and Alexandria stockexchanges, effective mid−December. Raafat's resignation was met calmly by the marketplace, likely because ofassurances that the transition to his successor, Sameh El−Torgoman, would go smoothly.

Regional tension in November did nothing to improve investor sentiment in Cairo, and the IFC indexes for Egyptdeclined further. Stocks were mixed through much of December as the beginning of the Ramadan holiday atmid−month contributed to sluggish trade volumes. This is traditionally an inactive time at the ESE, and manyinvestors took conservative positions until market activity picks up again, usually in mid−January.break


Egypt 267


IFCI Egypt Index Correlation(22−month period ending 12/98)





Exchange Rate(pounds per U.S. dollar)

Egypt 1998:(Currency in Millions)



Egypt StockExchange

656 658 668 674 681 700 702 745 770 797 834 861


Egypt 1998: (Currency in Millions) 268


In pounds 68,810 69,436 72,352 71,773 69,860 70,873 71,498 72,241 81,518 77,869 78,586 83,141

In U.S. dollars 20,164 20,399 21,241 21,048 20,479 20,776 20,878 21,179 23,906 22,702 23,017 24,381

Trading Value

In pounds 789 1,782 1,648 864 1,291 1,454 734 1,555 1,576 1,104 1,195 3,165

In U.S. dollars 231 523 484 253 378 426 214 456 462 322 350 928

Turnover ratio (%) 1.1 2.6 2.3 1.2 1.8 2.1 1.0 2.2 2.0 1.4 1.5 3.9

Local Index

EFG* 5,044.9 5,021.5 5,239.5 5,150.5 4,655.5 4,504.8 4,498.8 3,918.8 4,155.7 3,915.8 3,908.8 4,003.8

Change in index (%) −5.8 −0.5 4.3 −1.7 −9.6 −3.2 −0.1 −12.9 6.0 −5.8 −0.2 2.4

IFC Global Index

Number of stocks 54 54 54 54 54 54 54 54 54 54 66 66


49.1 48.5 48.1 47.6 49.2 46.0 44.8 40.8 38.4 37.8 44.1 42.0


60.1 56.8 62.7 66.4 56.5 45.6 62.5 34.9 51.8 57.9 74.7 30.3

P/E ratio 10.2 10.1 11.0 10.6 10.9 10.4 10.3 9.1 9.6 9.2 8.6 8.7

P/BV ratio 3.3 3.2 3.1 3.0 3.1 2.9 2.9 2.6 2.6 2.4 2.6 2.6

Dividend yield (%) 4.3 4.3 4.3 4.7 5.5 5.7 5.7 6.4 6.0 7.3 8.9 7.4



−5.4 −0.5 3.3 −1.5 −8.2 −4.4 −1.4 −11.6 6.8 −4.4 −1.5 1.5

Exchange Rates


3.4125 3.4038 3.4063 3.4100 3.4113 3.4113 3.4245 3.4110 3.4100 3.4300 3.4143 3.4100

Notes: The base date for the EFG Index is Jan. 2, 1993=1,000. The base date for the IFCG Egypt Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.


Egypt 1998: (Currency in Millions) 269

Cairo Stock ExchangeDr. Sameh El Torgoman,Chairman4−A. El Sherifeen StreetCairoEgyptTel: (20−2) 392−1447,392−8698Fax: (20−2) 392−8526http://www.egyptse.com

Alexandria Stock ExchangeDr. Sameh El Torgoman, Chairman11 Talat Harb StreetAl MunsheaAlexandriaEgyptTel: (20−3) 484−3600, 484−3601Fax: (20−3) 484−3603http://www.egyptse.com

IFC Correspondent:EFG−Hermes55 Charles de Gaulle St.GizaEgyptTel: (20−2) 571−7846, 571−7848Fax: (20−2) 571−6121, 571−0849http://www.EFG−hermes.com

Egypt 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Egypt Stock Exchange 510 573 627 656 674 700 746 649 654 861


In pounds 4,381 5,071 8,845 10,845 12,807 14,480 27,420 48,086 70,873 83,141

In U.S. dollars 1,711 1,765 2,651 3,259 3,814 4,263 8,088 14,173 20,830 24,381

Trading Value

In pounds 229 342 428 597 569 2,557 2,294 8,374 19,902 17,155

In U.S. dollars 91 126 139 195 170 757 677 2,463 5,859 5,028

Turnover ratio (%) 5.4 7.2 6.1 6.1 4.8 18.7 10.9 22.2 33.5 22.3

Local Index

EFG* − − − 1,000.0 1,377.0 3,537.3 3,269.7 4,615.1 5,353.7 4,003.8

Change in index (%) − − − − 37.7 156.9 −7.6 41.1 16.3 −25.4

IFC Global Index

Number of stocks − − − − − − 32 32 54 66

− − − − − − 50.5 44.7 51.0 42.0


Egypt 1989−1998: (Currency in Millions; End of Period Levels) 270

http://www.egyptse.com

http://www.egyptse.com

http://www.EFG-hermes.com


P/E ratio − − − − − − − 11.3 11.5 8.7

P/BV ratio − − − − − − − 3.2 3.9 2.6

Dividend yield (%) − − − − − − − 4.9 3.4 7.4


Change in index (%) − − − − − − − 48.1 23.6 −25.3

Economic Data


39,648 43,130 36,971 41,857 47,197 51,898 59,100 67,651 75,605 78,097


21.3 16.8 19.7 13.6 12.1 8.2 15.7 7.2 4.6 −


2.5600 2.8736 3.3370 3.3280 3.3580 3.3970 3.3900 3.3929 3.4025 3.4100


2.5200 2.7072 3.0873 3.0652 3.3497 3.3800 3.3900 3.3996 3.3966 3.4122

Notes: The base date for the EFG Index is Jan. 2, 1993=1,000. The base date for the IFCG Egypt Index is Dec.1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Estonia

Market Performance

Estonian equities fell sharply in 1998, initially in reaction to the Asian meltdown, regional problems, and worriesthat the local economy was overheated. Later in the year, the Russian crisis drew liquidity from the market andcaused a further deterioration in share prices. For the year, the IFCG Estonia Index lost 65.4% of its value indollar terms.

On April 7, 1998, IFC announced the launching of the IFCG Estonia Index, along with new indexes for Croatia,Latvia, Romania, and the Ukraine. Each index has a base date of December 1997=100 and is not included in theIFCG Composite Index. The Estonian index has ten stocks and is dominated by Hansabank, which representsabout 62% of market capitalization.

Estonian equities held steady in early 1998, although foreign investors were cautious about investing in Estoniafollowing the passage of new controversial legislation that imposed taxes on dividends paid to foreign residents.Rumors of a possible consolidation in the banking sector resulted in price volatility. These developmentscompounded by weakness in the kroon caused a 12.5% plunge in the value of the IFCG Index in February. Apartial recovery in March minimized losses in the first quarter to 3.8% in IFCG terms.

Poor performance by the banking sector pulled equities lower in April, with market heavyweights Savings Bankand Union Bank of Estonia among the biggest decliners. The general slump on the regional bourses dragged


Estonia 271

Estonia even lower in May, causing the IFCG Estonia Index to plunge 30.7% in dollar terms. Even goodeconomic news—a steady drop in interest rates from 15.7% to 9.5% since the beginning of the year and 1998GDP growth projected at 6%—could not hold back the selling pressure. Weakness in the banking sector pulledEstonian shares to new lows in June, with the dollar−based IFCG Index falling a further 21.8%.

The banking sector entered a consolidation period during the summer months, as many became hopeful thatmergers would allow them to expand across the Baltic region. The IFCG Index rebounded 7.0% in July and thensurged 12.3% in August as investors ignored the Russian crisis and losses on neighboring Baltic bourses. Analystsattributed the August gains to active bidding for Hansabank by two Swedish banks. This activity lifted the shareprices of other Estonian banks. The summer rally came to an end in September when the IFCG Index plunged31.0% as competitive bidding came to an end.

The Estonian stock market stagnated in October as investors awaited signs of stability in the aftermath of theRussian crisis and seized any opportunity for profit taking. This trend was reversed in November, as Union Bankof Estonia, the second biggest banking group in the Baltic region, announced a strategic partnership with theSwedish Bank SEB and the International Finance Corporation. This spurred interest in the banking sector and theindex forged ahead. Finally, December brought fresh selling amid an absence of positive economic or corporatedevelopments. Trading activity contracted in December following losses reported by largest banks and a holidayseason slowdown.break


IFCG Estonia Index Correlation(12−month period ending 12/98)



Estonia 272




Exchange Rate(kroon per U.S. dollar)

Estonia 1998:(Currency in Millions)



Tallin StockExchange

28 28 28 28 28 28 28 26 26 26 26 26


In kroons 15,708.0 13,559.5 15,255.3 14,957.0 10,761.0 8,825.0 9,169.0 9,838.9 6,554.0 6,894.6 7,362.0 6,928.0

In US dollars 1,074.7 933.9 1,031.0 1,042.3 757.5 610.4 643.5 688.0 489.2 520.6 539.2 519.4

Trading value

In kroons 2,324.4 1,504.8 1,973.4 1,648.2 954.6 1,048.5 769.1 1,113.6 1,256.4 313.8 183.1 114.0

In US dollars 159.0 103.6 133.4 114.9 67.2 72.5 54.0 77.9 93.8 23.7 13.4 8.5

Turnover ratio (%) 13.0 10.3 13.7 10.9 7.4 10.7 8.5 11.7 15.3 4.7 2.6 1.6

Local Index


Estonia 1998: (Currency in Millions) 273

TALSE* 262.3 227.2 257.6 233.5 164.9 132.8 139.6 150.6 103.0 96.2 102.4 90.7

Change in index (%) −1.2 −13.4 13.4 −9.4 −29.3 −19.5 5.1 7.9 −31.6 −6.6 6.5 −11.4

IFC Global Index

Number of stocks 12 12 12 12 12 12 10 10 10 10 10 10


89.2 89.9 89.7 87.0 82.9 80.5 98.7 88.5 85.8 76.0 76.7 92.5


95.2 96.9 90.1 85.7 86.7 94.5 92.5 96.3 97.4 89.2 81.7 73.8

P/E ratio 11.3 56.3 19.3 10.2 7.1 7.9 12.7 12.4 10.1 9.4 10.1 25.9

P/BV ratio 2.7 2.5 2.8 2.1 1.5 1.2 1.6 1.5 1.0 0.9 1.0 1.0

Dividend yield (%) − − − − − − − − − − − 2.6



0.1 −12.5 9.9 −7.4 −29.8 −21.6 7.0 12.3 −31.0 −5.8 4.5 −12.0

Exchange Rates


14.6164 14.5197 14.7969 14.3500 14.2052 14.4588 14.2496 14.3000 13.3980 13.2440 13.6540 13.3388

Notes: The base date for the TALSE Index is June 3, 1996=100. The base date for the IFCG Estonia Index is Dec. 1997=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Tallin Stock ExchangeMr. Gert Tiivas, Chairman of the Managing BoardMs. Eva Palu, Manager of Investor RelationsRavala 6TallinEstonia, EE0001Tel: (372) 640−8840Fax: (372) 640−8801http://www.tse.ee

IFC Correspondent:Talinvest Suprema SecuritiesParnu mnt. 10Tallin, 10148EstoniaTel: (372) 640 5700Fax: (372) 640 5701http://www.tss.ee

Estonia 1989−1998:(Currency in Millions; End of Period Levels)


Estonia 1989−1998: (Currency in Millions; End of Period Levels) 274

http://www.tse.ee

http://www.tss.ee

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Tallin Stock Exchange − − − − − − − − 27 26


In kroon − − − − − − − − 15,821.0 6,928.0

In US dollars − − − − − − − − 1,100.6 519.4

Trading Value

In kroon − − − − − − − − 20,600.0 13,203.7

In US dollars − − − − − − − − 1,483.9 939.2

Turnover ratio (%) − − − − − − − − − 116.1

Local Index

TALSE* − − − − − − − − 257.3 90.7

Change in index (%) − − − − − − − − − −64.8

IFC Global Index

Number of stocks − − − − − − − − 12 10

Share of market cap. (%)* − − − − − − − − 87.0 92.5

P/E ratio − − − − − − − − 12.0 25.9

P/BV ratio − − − − − − − − 2.9 1.0

Dividend yield (%) − − − − − − − − − 2.6



− − − − − − − − − −64.8

Economic Data


6,422 7,977 5,689 4,226 4,011 4,036 4,789 4,370 4,682 5,462

Change in consumer price − − − − − − − − − −


Estonia 1989−1998: (Currency in Millions; End of Period Levels) 275

index (%)


− − − − − − − − 14.3747 13.3388


− − − − − − − − 13.8820 14.0584

Notes: The base date for the TALSE Index is June 3, 1996=100. The base date for the IFCG Estonia Index is Dec.1997=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Ghana

Market Performance

Punctuating 1998 with a strong December finish, the Ghana Stock Exchange (GSE) finished the year not only asone of the world's best performing stock markets, but also as the top IFC frontier equity market in local terms.The IFCG Ghana Index gained more than 29.5% in dollars, while the local index shone with almost a 70% returnin cedi terms. After several years of double−digit declines, the cedi was mostly stable in 1998, falling just 4.3%against the U.S. dollar.

After a struggling finish in 1997, shares rallied on the GSE in late January, following interest rate declines and therelease into the market of several blocks of Pioneer Tobacco, Home Finance Corp., and Mobil shares. During themonth, the IFCG Index rose 1.4% while the GSE All−share Index climbed almost 10% as investors scrambled tobuy the newly released shares. In March, the GSE All−Share Index climbed to new highs, as investors cheered theannouncement of an IMF−approved $110 million loan for Ghana.

Equities continued their upward trend in April as surging demand for shares far outpaced supply. Despiteprofit−taking in late May and early June, seven straight trading days of gains at the end of June ensured an overallrise for the second quarter.

At the outset of July, news that the World Bank had approved a $50 million interest−free loan gave share prices aboost. The loan was to help develop free trading zones within Ghana, which would pave the way for stronggrowth in the local export industries. August and September returns, however, were not so good as foreigninvestors took to the sidelines, stymied by a lack of share liquidity. Talk of an electricity price hike and fallingearnings for banking sector stocks also deterred investors from actively trading during the period.

In October, the market shed 8.2% in local terms, while the IFCG Index faired slightly better, falling only 0.23% in


Ghana 276

dollar terms. Despite being considered the most attractively priced brewery stock on the GSE, shares of indexconstituent Guinness Ghana fell almost 19% on worries that increasing competition would erode future earnings.With three multinational brewers now controlling the beer market in the region, it was feared that the companywould need to spend more money on advertising to boost sales growth, which would severely strain thecompany's earnings and stock price. Local equities, however, rallied in both November and December as solidgains in the banking sector closed out a strong year on the exchange.break


IFCG Ghana Index Correlation(36−month period ending 12/98)





Exchange Rate(cedis per U.S. dollar)

Ghana 1998:(Currency in Millions)


Ghana 1998: (Currency in Millions) 277



Ghana StockExchange

21 21 21 21 21 21 21 21 21 21 21 21


In cedis 2,629,5402,862,4803,203,6303,744,7303,512,8303,347,4503,194,3403,255,9802,961,8603,002,0903,095,9003,245,610

In USdollars

1,148.6 1,245.9 1,383.3 1,622.9 1,522.2 1,441.0 1,362.2 1,400.4 1,273.9 1,276.1 1,323.0 1,383.9

Trading Value

In cedis 6,571.1 7,358.2 13,062.2 24,083.7 9,165.5 18,185.1 5,108.4 9,647.8 3,212.0 29,952.2 2,501.2 9,523.2

In USdollars

2.9 3.2 5.6 10.4 4.0 7.8 2.2 4.1 1.4 12.7 1.1 4.1

Turnoverratio (%)

0.4 0.3 0.4 0.7 0.3 0.5 0.2 0.3 0.1 1.0 0.1 0.3

Local Index

GSE All Share* 563.8 648.5 849.2 1,184.6 1,028.5 970.2 1,012.2 980.2 854.3 784.4 776.3 868.3

Change inindex (%)

10.0 15.0 30.9 39.5 −13.2 −5.7 4.3 −3.2 −12.8 −8.2 −1.0 11.8

IFC GlobalIndex

Number ofstocks

8 8 8 8 8 8 8 8 8 8 8 8

Share ofmarket cap.(%)

91.0 90.9 90.0 83.6 85.7 85.7 83.7 86.0 85.9 86.4 87.3 86.9


96.1 54.1 95.5 79.0 37.2 88.2 41.2 96.6 56.7 20.4 88.3 81.2

P/E ratio 11.7 12.8 12.5 12.1 11.6 11.0 10.3 11.1 10.0 10.1 10.5 10.5

P/BV ratio 2.1 2.3 2.5 2.3 2.2 2.1 1.9 2.0 1.8 1.8 1.9 2.0

Dividendyield (%)

3.3 2.8 2.2 2.1 2.5 2.8 2.6 5.0 5.5 5.8 9.9 9.6

57.3 62.3 70.6 77.6 74.6 70.6 65.7 71.0 64.3 64.3 69.8 73.2


Ghana 1998: (Currency in Millions) 278

Total returnindex*


1.4 8.8 13.3 9.9 −3.9 −5.3 −7.0 8.1 −9.4 0.0 8.4 5.0

Exchange Rates


2,289.41 2,297.50 2,316.00 2,307.46 2,307.68 2,323.00 2,345.00 2,325.00 2,325.00 2,352.50 2,340.00 2,345.23

Notes:The base date for GSE All Share Index 1990−93=100. The base date for the IFCG Ghana Index is Dec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross

holdings.

Ghana Stock ExchangeMr. Yeboa Amoa, Managing Director

Dr. F.D. Tweneboa, General Manager5th Floor CEDI HouseLiberia Road, P.O. Box 1849AccraGhanaTel: (233−21) 66−9908, 66−9914, 66−9935Fax: (233−21) 66−9913

IFC Correspondent:Gold Coast Securities Ltd.

Chadwick House, 1st FloorSelwyn Market StreetP.O. Box 17187AccraGhanaTel: (233−21) 661192, 661193Fax: (233−21) 661180

Ghana 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Ghana Stock Exchange− − 13 15 15 17 19 21 21 21


In cedis − − 29,600.0 43,753.0 96,514.0 1,968,400.02,399,020.02,597,210.02,552,780.03,245,610.0

In US dollars − − 75.8 84.1 118.4 1,872.9 1,648.8 1,492.5 1,137.8 1,383.9

Trading Value

In cedis − − 104.7 173.5 3,177.9 73,088.1 27,590.6 27,785.1 95,839.0 138,370.7

In US dollars − − 0.3 0.4 4.8 75.1 22.3 17.0 46.7 59.8


Ghana 1989−1998: (Currency in Millions; End of Period Levels) 279

Turnover ratio (%) − − − 0.5 4.5 7.1 1.3 1.1 3.7 4.8

Local Index

GSE All Share* − − − 79.1 170.8 371.7 298.1 360.8 511.7 868.3

Change in index (%) − − − − 116.1 117.6 −19.8 21.0 41.8 69.7

IFC Global Index

Number of stocks − − − − − − 8 8 8 8


− − − − − − 98.7 93.3 91.1 86.9

P/E ratio − − − − − − − 11.8 11.4 10.5

P/BV ratio − − − − − − − 2.7 2.1 2.0

Dividend yield (%) − − − − − − − 3.7 3.4 9.6



− − − − − − − −18.9 −30.3 29.6

Economic Data


5,249 5,886 6,600 6,413 5,966 5,440 6,461 6,927 6,884 −


25.2 37.3 18.1 10.0 25.0 24.9 74.3 34.1 27.9 −


− − 390.630 520.000 815.000 1,051.000 1,455.000 1,740.225 2,243.635 2,345.230


− − 367.830 438.167 661.967 973.750 1,237.167 1,633.574 2,051.569 2,315.613

Notes: The base date for GSE All Share Index 1990−93=100. The base date for the IFCG Ghana Index is Dec. 1995=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Greece

Market Performance

Greek equities registered outstanding results throughout 1998, with the local Athens Stock Exchange (ASE) Indexclosing the year at record highs. Shaken a little by turbulence in Russia and Asia, the Greek market neverthelessshrugged off bearish sentiments. The EU economic convergence requirements, combined with a respectedgovernment perceived as committed to economic reforms, contributed to investors' confidence. Also, rapidly


Greece 280

falling inflation and interest rates, strong GDP growth and corporate earnings, lower current account deficits, astable currency, and some structural improvements made Greece a relatively secure investment niche in the riskyemerging markets environment. Over the year, the drachma−based ASE Index rose 85% while the dollar−basedIFC indexes gained 91.1%.

Stocks zigzagged during the first two months of 1998, finishing the period slightly lower. Trading was heavilyinfluenced by the direction of money market rates. Indications of government intentions to push forward reformsappeared in mid−February and gave a temporary boost to stocks.

Most of the gains in 1998 came in March and April, when equities surged by almost 85%. In March, the marketbenefited from optimism over the economic climate and expectations over Greece's likely prospects for joiningthe European single currency. Devaluation of the drachma by 14% against the ECU, after it entered the EU'sexchange rate mechanism in mid−March, gave a major boost to the market. Many large companies, such astelecom OTC and the largest banks, jumped by 8% in single trading sessions, the maximum allowed by stockexchange rules. Bullish sentiment persisted in April after Parliament approved a reform package to revamp thelocal air carrier and to manage the ongoing corporate consolidation and restructuring process. The investmentcommunity hailed the decision of National Bank of Greece to merge with its subsidiary Mortgage Bank.

The banking sector set the tone for the market in May as investors responded to the unfolding story of thegovernment sale of Ionian Bank. The bouncy ride developed into losses in June amid ongoing uncertaintysurrounding the bank's sale and downward pressure from declining European and Asian markets. The priceswings continued throughout the summer with equities rising in July, in part from the successful IPO of HellenicPetroleum, and falling back in August.

Stocks extended their losses in September because of persistent volatility in international markets and fears aboutthe contagion effects of the Russian crisis. However, the worst was over, and the market rebounded in Octoberand continued an upward trend through year's end. The government signaled that it was sticking with plans to sellstate assets to boost revenues. Stocks rallied on this news and on an unexpected interest rate cut by the U.S.Federal Reserve Board. Rebounding U.S. and European markets, as well as domestic buying sparked by positiveearnings and expectations of a short−term interest rate cut, firmed foreign investor confidence. The OTE andPanafon Hellenic Telecom offerings in November attracted foreign interest and caused a spillover effect thatbenefited other large−cap stocks.

Despite the market's historic highs, analysts expect the positive momentum to continue in 1999 and for the marketto test new highs.break


Greece 281


IFCI Greece Index Correlation(5−year period ending 12/98)





Exchange Rate(drachma per U.S. dollar)

Greece 1998:(Currency in Millions)


Greece 1998: (Currency in Millions) 282

Notes: The base date for the ASE Composite Index is 1980=100. The base date for the IFCG Greece Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Athens Stock ExchangeSpiridon Kouniakis, President10 Sophocleous StreetAthens, 105 59GreeceTel: (30−1) 321−1301Fax: (30−1) 321−3938http://www.ase.gr

IFC Correspondent:Alpha Brokerage S.A.6 Dragatsaniou Str.Athens GR−10559GreeceTel: (30−1) 331−3315Fax: (30−1) 331−1193

Greece 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Athens StockExchange

119 145 126 129 143 216 212 224 230 244


Greece 1989−1998: (Currency in Millions; End of Period Levels) 283

http://www.ase.gr


In drachma 996,623 2,428,9292,295,5942,042,8963,071,8013,589,9554,036,0005,965,0009,692,64022,401,771

In U.S. dollars 6,376 15,228 13,118 9,489 12,319 14,921 17,060 24,178 34,164 79,992

Trading Value

In drachma 89,006 621,370 444,977 306,800 623,434 1,248,1701,409,5281,994,4375,774,20813,884,785

In U.S. dollars 549 3,924 2,443 1,605 2,713 5,145 6,091 8,283 21,146 46,999

Turnover ratio (%) 10.9 36.3 18.8 14.1 24.4 37.5 37.0 39.9 73.8 86.5

Local Index

ASE Composite* 459.4 932.0 809.7 672.3 958.7 868.9 914.1 933.5 1,479.6 2,737.5

Change in index (%) 64.3 102.9 −13.1 −17.0 42.6 −9.4 5.2 2.1 58.5 85.0

IFC Global Index

Number of stocks 26 35 32 32 35 36 50 58 56 56


66.7 55.9 60.7 56.7 56.7 53.8 59.6 76.3 77.2 66.5

P/E ratio 16.6 16.7 10.7 6.9 10.2 10.4 10.5 10.4 17.6 33.6

P/BV ratio 2.2 4.3 2.3 1.7 1.9 1.9 1.8 2.0 3.1 4.8

Dividend yield (%) 4.6 5.0 3.8 11.0 4.8 4.6 4.5 3.7 2.9 1.6

Total return index* 446.4 911.2 735.9 537.4 655.3 668.6 737.5 774.8 1,065.2 2,083.8

Change in index (%) 80.2 104.1 −19.2 −27.0 21.9 2.0 10.3 5.1 37.5 95.6

Economic Data


67,082 82,914 89,048 98,445 92,195 98,653 114,780 122,946 − −


13.7 20.4 19.5 15.9 14.4 10.9 8.9 8.2 5.5 −


156.30 159.50 175.00 215.30 249.35 240.60 236.58 246.71 283.71 280.05


162.11 158.34 182.16 191.12 229.80 242.62 231.42 240.78 273.06 295.42


Greece 1989−1998: (Currency in Millions; End of Period Levels) 284

Notes: The base date for the ASE Composite Index is 1980=100. The base date for the IFCG Greece Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Hungary

Market Performance

This past year was both highly volatile and largely negative for the Hungarian equity market. The local BUXIndex declined by 21.1% in forint terms, while IFCI and IFCG Hungary indexes each lost 10.8% in dollar terms.

Equities posted strong gains in the first quarter, backed by reports of solid corporate earnings growth. MajorHungarian companies reported 1997 earnings growth of about 50%. By April 3, the IFCI Index had gained 22.5%,reaching what would prove to be its highest value for the year.

Blue−chip companies and the government each exploited the market's early−year gains and went forward withnew issues. The state sold an 11% stake in oil and gas company MOL at the end of March, while strategic ownerEdF and OTP sold a combined 30% stake in electricity distributor Démász. The sale made Démász the firstelectricity utility to be listed on the Budapest Stock Exchange (BSE) and boosted the BSE's market capitalizationby 9%.

Equities remained flat in April, with drug−maker Richter reporting lower−than−expected first−quarter earnings,news that cast a shadow on profit expectations across the board. Shares plummeted in May, as the first round ofparliamentary elections indicated that the ruling socialist−liberal coalition would be replaced by a newgovernment led by center−right Fidesz−MPP. Campaign promises that tough fiscal policies would be relaxedcreated nervousness on the market while discussions of changes in the pharmaceutical sector subsidy system anda shortening of Matav's monopoly in the telephone services market added to investors' anxiety.

As the new government made it clear that no radical changes in macroeconomic policy were planned and fears ofthe looming Russian crisis seemed to abate, the equities market enjoyed a period of moderate rise in June andJuly. This period of relative stability was halted suddenly and severely by the August collapse of the Russianmarket, which mercilessly demolished all the gains in the region and at least temporarily tarnished the region'simage in the eyes of investors. All shares took a heavy beating, but the most stinging losses were incurred bycompanies with lower liquidity and direct exposure to Russia. Hardest hit were companies in the pharmaceuticaland building material sectors (Richter, Graboplast, Zalakerámia).

Within two months, IFCI Hungary Index plummeted by 38%. Many fund managers who were overweightHungary, relative to their benchmarks, took advantage of the market's relatively high liquidity to lighten easternEuropean exposure and to raise funds with which to cover redemptions.


Hungary 285

In the fourth quarter, the market saw a significant correction, allowing the IFCI Index to finish the year down only10.8%. This was a very welcome close following year−to−date performance of down 35% at the end ofSeptember. Concerted monetary easing in the developed markets combined with relative restraint in Brazil'sdeterioration helped to revive hopes for emerging markets in general. Domestically, the rapidly decreasinginflation rate also provided support for the market, while local institutional investors did some window dressing atthe end of the year. The only positive performers for the year were three large and very liquid companies with lowexposure to foreign markets: OTP (up 39%), MOL (up 19.3%) and Matav (up 13.6%). Zalakeramia (down 72%),Primagaz (down 63%), Egis (down 61%) and Richter (down 60%) sustained the worst losses.break


IFCI Hungary Index Correlation(5−year period ending 12/98)





Exchange Rate(forint per U.S. dollar)

Hungary 1998:(Currency in Millions)


Hungary 1998: (Currency in Millions) 286



Budapest StockExchange

49 50 50 52 52 53 53 53 53 53 53 55


In forint 2,830,2373,114,7023,484,9943,465,3573,015,1783,255,1223,483,7762,288,7872,169,3232,507,5862,744,1773,020,083

In U.S.dollars

13,603 14,925 16,338 16,427 14,085 14,879 16,132 10,205 9,924 11,560 12,513 14,028

Trading Value

In forint 181,722 208,772 278,926 336,297 286,107 276,200 312,110 306,359 334,071 289,956 318,076 331,762

In U.S.dollars

873 1,000 1,308 1,594 1,337 1,262 1,445 1,366 1,528 1,337 1,450 1,541

Turnoverratio (%)

6.2 7.0 8.4 9.7 8.8 8.8 9.3 10.6 15.0 12.4 12.1 11.5

Local Index

BUX* 7,421.6 8,256.9 8,656.2 8,552.2 7,057.1 7,805.7 8,215.3 5,252.5 4,571.1 5,312.0 5,976.3 6,307.7

Change inindex (%)

−7.2 11.3 4.8 −1.2 −17.5 10.6 5.3 −36.1 −13.0 16.2 12.5 5.5

IFC GlobalIndex

Number ofstocks

15 15 15 15 15 15 15 15 15 15 15 15

Share ofmarket cap.(%)

87.4 89.3 90.6 88.2 88.7 89.4 89.9 87.8 89.0 89.9 90.2 86.5

Share oftradingvalue (%)*

92.3 93.1 93.7 90.7 93.9 95.2 92.6 13.6 96.3 95.1 92.7 93.1

P/E ratio 24.8 27.9 31.6 30.5 26.9 18.7 20.1 12.9 12.3 14.4 16.1 17.0

P/BV ratio 3.8 4.3 4.9 4.7 4.1 3.6 3.8 2.5 2.4 2.8 3.1 3.2

Dividendyield (%)

0.5 0.4 0.4 0.4 0.9 1.0 1.0 1.5 1.6 1.3 1.1 1.1

223.4 246.8 272.6 266.8 232.7 246.6 268.4 165.9 162.9 191.9 208.7 223.4


Hungary 1998: (Currency in Millions) 287

Total returnindex*


−9.8 10.5 10.5 −2.1 −12.8 6.0 8.8 −38.2 −1.8 17.8 8.7 7.1

Exchangerates (end ofperiod)

208.065 208.695 213.305 210.955 214.065 218.780 215.960 224.280 218.600 216.910 219.300 215.295

Notes:The base date for the BSE BUX Index in Jan. 2, 1991=1,000. The base date for the IFCG Hungary Index is Dec. 1992=100. In calculating share of total market cap, IFCG market cap is not adjusted

for cross holdings.

Budapest Stock ExchangeMr. Andras Simor, Chairman, Stock Exchange Council

Dr. Maria Dunavolgyi, Chief Executive OfficerDeak Ferenc U. 5.1052 Budapest, HungaryTel: (36−1) 429−6700Fax: (36−1) 429−6800http://www.bse.hu

Email: [email protected]

IFC Correspondent:Concorde Securities Ltd.

Vorosmarty 1 x.em1051 BudapestHungaryTel: (36−1)266−8035Fax: (36−1) 266−8036http://www.con.hu

Email: concorde@ con.hu

Hungary 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Budapest StockExchange

− − 21 23 28 40 42 45 49 55


In forint − − 38,200 47,207 81,741 181,527 327,775 852,456 3,058,360 3,020,083

In U.S. dollars − − 505 562 812 1,604 2,399 5,273 14,975 14,028

Trading Value

In forint − − 8,723 2,996 9,136 28,382 44,054 245,265 1,436,083 3,460,357

In U.S. dollars − − 117.0 38 99 270 355 1,641 7,684 16,135


Hungary 1989−1998: (Currency in Millions; End of Period Levels) 288

http://www.bse.hu

http://www.con.hu

Turnover ratio (%) − − − 7.0 14.2 21.6 17.3 41.6 73.4 113.9

Local Index

BUX* − − 837.6 890.9 1,264.1 1,470.1 1,528.9 4,134.3 7,999.1 6,307.7

Change in index (%) − − − 6.4 41.9 19.6 4.0 170.4 93.5 −21.1

IFC Global Index

Number of stocks − − − 12 13 13 17 18 15 15


− − − 84.2 81.2 46.6 33.2 85.6 87.4 86.5

P/E ratio − − − − 52.4 −55.3 12.0 17.5 27.3 17.0

P/BV ratio − − − − 1.6 1.7 1.2 2.0 4.2 3.2

Dividend yield (%) − − − − 2.7 2.7 3.1 1.0 0.5 1.1


Change in index (%) − − − − 24.6 −15.3 −27.1 97.8 62.9 −9.8

Economic Data


29,151 33,059 33,445 37,249 38,610 41,491 44,662 45,176 45,725 −


16.9 29.0 34.2 22.9 22.5 18.9 28.3 23.5 18.3 −


− − 75.620 83.970 100.700 113.150 136.630 161.650 204.225 215.295


− − 74.735 78.988 92.007 105.210 124.060 149.492 186.887 214.462

Notes: The base date for the BSE BUX Index in Jan. 2, 1991=1,000. The base date for the IFCG Hungary Index is Dec. 1992=100.In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

India

Market Performance

Poor results hounded Indian equities in 1998, as the fall−out effects from the Asian crisis weighed on investorsentiment, as did the formation of a new coalition government and the detonation of nuclear devices, whichsparked economic sanctions. For the year, the dollar−based IFCI and IFCG India indexes shed 23.0% and 15.3%,respectively, while the local BSE−200 Index of the Mumbai Stock Exchange dropped 11.4% in rupee terms. Therupee depreciated 7.7% in 1998.


India 289

Bearish investor sentiment prevailed in early 1998 as investors worried about weakness in the rupee andspeculated about a possible downgrade in the country's credit rating by Moody's. (India's foreign debt−rating wasdowngraded below investment grade in the second quarter.) An unexpected drop in overnight interest rates andoptimism that a strong government would emerge from the March 7 national elections turned this sentimentaround later in the first quarter. Despite the election of a coalition government composed of the Hindu−Nationalistand Bharatiya Janata Party (BJP), share prices continued to proceed upward amid confidence in the coalition'scommitment to revive the economy as well as to spearhead major infrastructure projects. For the quarter, the IFCIIndex gained 5%, as did the BSE−200 Index.

Most of the year's damage occurred in the second quarter, as hopes for a strong government quickly evaporatedfollowing a lukewarm reception of the fiscal budget. Later in the quarter, the market's discordant direction took itscue from national politics, as BJP party members demanded the resignation of other party ministers amid chargesof corruption. Nuclear tests dealt the final blow to Indian equities after both India and Pakistan detonated nucleardevices despite the ire of the international community. As a result, the United States and Japan pressured for thecomplete stoppage of government−to−government loans, including any World Bank and IMF−sponsored loans.The IFCI India Index lost 21.4% in the second quarter.

The fragile coalition government of Prime Minister Atal Vajpayee amid the backdrop of the continuing woes ofAsia's financial crisis shaped negative third−quarter results. Share prices recovered considerable ground at the endof the period, however, after companies were authorized to buy back shares and restrictions on companiesborrowing from each other were eased, effective in October. The likelihood that the government would sign thenuclear test−ban treaty—thereby easing economic sanctions imposed by the United States in May—also providedsupport. The IFCI Index dropped an additional 4.5% this quarter.

The final quarter saw Indian equities drop still lower, but at a much slower pace, thanks to a more optimisticoutlook for 1999. The prospects for a more stable government continued to look slim after the Congress Partydefeated the BJP in two key state elections in November. However, concerns diminished after the BJP took astrong stance on opening up the insurance industry to foreign participation as well as on granting exclusivemarketing rights to pharmaceuticals. The IFCI India Index fell 2.3% while the BSE−200 Index dropped 2%during the final three months of 1998.break


India 290


IFCI India Index Correlation(5−year period ending 12/98)





Exchange Rate(rupee per U.S. dollar)

India 1998:(Currency in Millions)



Mumbai StockExchange

5,850 5,852 5,853 5,853 5,852 5,854 5,850 5,851 5,854 5,855 5,857 5,860



India 1998: (Currency in Millions) 291

In rupee 4,695,1305,263,5705,603,2505,802,3805,618,4904,854,6104,834,2004,648,8704,797,1104,527,7904,467,2804,470,100

In U.S.dollars

120,946 133,763 141,917 146,100 134,817 114,563 113,639 109,334 113,132 106,888 104,915 105,188

Trading Value

In rupee 173,810 164,970 233,100 266,840 234,400 224,950 212,420 182,110 276,470 223,706 202,210 266,870

In U.S.dollars

4,477 4,192 5,904 6,719 5,624 5,309 4,993 4,283 6,520 5,281 4,749 6,280

Turnoverratio (%)

3.6 3.3 4.3 4.7 4.1 4.3 4.4 3.8 5.8 4.8 4.5 6.0

Local Index

BSE 200* 313.6 348.2 376.6 398.3 375.7 325.8 324.5 305.1 320.4 293.7 291.5 314.0

Change inindex (%)

−11.5 11.0 8.1 5.8 −5.7 −13.3 −0.4 −6.0 5.0 −8.3 −0.8 7.7

IFC GlobalIndex

Number ofstocks

133 133 133 133 133 133 133 133 133 133 142 142


49.9 49.5 50.2 50.7 48.9 49.3 49.0 47.7 48.8 47.4 61.4 66.4


78.5 93.6 89.1 81.8 66.3 70.2 61.2 59.4 53.7 52.4 92.0 94.2

P/E ratio 13.6 15.2 16.4 17.1 15.0 13.1 13.1 11.4 12.3 11.5 11.5 13.5

P/BV ratio 2.0 2.2 2.4 2.5 2.3 2.0 2.0 1.6 1.7 1.6 1.7 1.8

Dividendyield (%)

2.0 1.8 1.8 1.8 1.8 2.3 2.2 2.4 2.1 2.3 2.0 1.9

Total returnindex*

330.3 363.1 393.2 409.7 369.7 319.1 317.8 296.6 313.1 291.7 289.6 316.4


−9.8 9.9 8.3 4.2 −9.8 −13.7 −0.4 −6.7 5.5 −6.8 −0.7 9.3

Exchange Rates

Exchange rates(end of period)

38.8200 39.3500 39.4825 39.7150 41.6750 42.3750 42.5400 42.5200 42.4028 42.3600 42.5800 42.4963


India 1998: (Currency in Millions) 292

Notes:The base date for the BSE 200 is 1989−90=100. The base date for the IFCG India Index is Dec. 1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross

holdings.

Mumbai Stock ExchangeMr. J.C. Parekh, President

Mr. R.C. Mathur, Executive Director25th floor, Phiroze Jeejeebhoy TowersDalal StreetMumbai, 400 001, IndiaTel: (91−22) 265−5860Fax: (91−22) 265−8121http://bseindia.com

IFC Correspondent:Crisil Research & Information Services

Sane Guruji Premises386 Veer Savarkar Marg, PrabhadeviMumbai, 400 025IndiaTel: (91−22) 432−4810Fax: (91−22) 431−6835

India 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Mumbai Stock Exchange 2,407 2,435 2,556 2,781 3,263 4,413 5,398 5,999 5,843 5,860


In rupee 460,000 700,000 1,231,4401,867,6103,050,0004,000,0004,472,9704,392,3105,037,1604,470,100

In U.S. dollars 27,316 38,567 47,730 65,119 97,976 127,515 127,199 122,605 128,466 105,188

Trading Value

In rupee 280,320 382,091 548,350 572,723 675,152 851,360 445,764 940,672 1,959,5402,661,856

In U.S. dollars 17,362 21,918 24,295 20,597 21,879 27,290 13,738 26,599 53,954 64,498

Turnover ratio (%) 68.8 65.9 56.8 37.0 27.5 24.1 10.5 21.2 41.6 56.0

Local Index

BSE 200* 839.9 1,040.7 // 233.6 314.8 407.5 442.5 313.7 305.1 354.4 314.0

Change in index (%) 32.4 23.9 − 23.6 29.5 8.6 −29.1 −2.7 16.2 −11.4

IFC Global Index


India 1989−1998: (Currency in Millions; End of Period Levels) 293

http://bseindia.com

Number of stocks 60 60 62 62 108 119 123 131 133 142

Share of market cap. (%) 46.0 40.6 36.2 39.0 50.3 51.3 45.4 50.2 52.6 66.4

P/E ratio 14.9 17.8 25.4 33.7 39.7 26.7 14.2 12.3 15.2 13.5

P/BV ratio 2.5 2.9 3.9 4.7 4.9 4.2 2.3 2.1 2.3 1.8

Dividend yield (%) 1.9 1.9 1.3 0.7 1.0 1.0 1.8 1.7 1.8 1.9


Change in index (%) 4.3 18.7 18.4 22.9 18.8 7.4 −34.2 −2.1 7.1 −13.6

Economic Data


274,190 298,329 251,550 243,834 258,432 306,847 334,429 359,718 381,566 383,429


6.2 9.0 13.9 11.8 6.4 10.2 10.2 9.0 7.2 −


16.8400 18.1500 25.8000 28.6800 31.1300 31.3688 35.1650 35.8250 39.2100 42.4963


16.1457 17.4326 22.5704 27.8066 30.8583 31.1970 32.4471 35.3656 36.3184 41.2705

Notes: The base date for the BSE 200 is 1989−90=100. The base date for the IFCG India Index is Dec. 1984=100. In 1994, IFC switchedfrom using the F.E. Bombay Index to the BSE 200 because the latter is more representative of market movements. In calculating share oftotal market cap, IFCG market cap is not adjusted for cross holdings.

Indonesia

Market Performance

Equities on the Jakarta Stock Exchange (JSE) plummeted in 1998 in response to the economic recession andAsian contagion. Stock prices were extremely volatile, reacting to wild swings in the exchange rate and a majorshift in the political landscape, culminating in President Suharto's resignation after 32 years in office. The IFCIIndonesia Index plummeted 64.4% in U.S. dollars between March and September while the fragile rupiahdepreciated from 8,650 to 10,700. Signs of an economic recovery, bolstered by rallies throughout Asia, hoistedJSE stocks in the last quarter, narrowing the 1998 IFCI loss to 28.1% in dollar terms.

The value of the rupiah swung unpredictably in the first quarter, reacting with severity to a foreign sell−off andthe predicament of high interest rates. Local and foreigner investors alike were unnerved by the prospect thatrising unemployment and bankruptcies would incite political and social instability. In the midst of mountingpressure against the currency, the government latched onto a controversial solution—a currency board system.After severe international scrutiny, however, the proposal was laid to rest in March. The rates on the benchmarkone−month SBI government bills surged to 45% in March to rein in inflation that stood at 39%, year on year, a23−year high. Aggravating the situation was the IMF's decision to stall the March installment of a $40 billioninternational aid package, calling upon Indonesia to implement the reforms agreed to in the aid plan, includingbank restructuring, dismantling of cartels, and privatization.


Indonesia 294

A weak rupiah and steep interest rates of up to 100% choked company fundamentals through September. Stocksbenefiting from a weak currency (i.e., earnings predominantly in foreign currency) bucked the decline. Analystsfound it difficult to judge companies' fundamental value because earnings were unreliable, the currency wasunstable, and the political system was crumbling under pressure from student groups and opposition parties.Rapid rises in food and commodity prices precipitated the resignation of President Suharto in May. Vice PresidentB.J. Habibie replaced Suharto at the helm, pledging new general elections for the country in 1999. Nevertheless,equities were unable to break the downward spiral in June, as companies with ties to the Suharto familyplummeted.

The market bounced back in July on a more stable political environment and market−oriented policies. Thegovernment also concluded an agreement with the IMF to resume aid. A backlash in August from the Russiancrisis and the weak Japanese yen spooked investors and dampened enthusiasm. Japan is both a source ofinvestment for Indonesia and a major export market. Banking stocks rose on government support for rebuildingthe financial system. Furthermore, setbacks in the privatization process and developments in the new bankruptcylaw generated great caution among Indonesia investors, who worried that it would lead to the liquidation anddelisting of dozens of companies.

Stocks rallied in the last quarter because of a regional rally, stronger regional currencies, and lower interest ratesin the U.S. and Europe. JSE stocks surged 55.9% and 46.5% in October and November, respectively, as investorsreturned to hunt for bargains. The year finished on an upbeat note, slowed only by uncertainty over a smoothdemocratic election process set for 1999 and the government's plans to privatize more of its stakes in 12 majorstate−controlled companies.break


Indonesia 295


IFCI Indonesia Index Correlation(5−year period ending 12/98)





Exchange Rate(rupiah per U.S. dollar)

Indonesia 1998:(Currency in Millions)



Jakarta StockExchange

287 287 287 287 287 287 287 287 287 287 287 287


In rupiah (/1,000) 199,859 198,401 223,309 191,852 175,319 188,146 203,332 144,547 116,575 127,477 163,813 175,729

In U.S. dollars 19,034 22,418 25,816 23,759 15,515 12,713 15,462 12,906 10,895 16,773 22,062 22,104

Trading Value

In rupiah (/1,000) 11,833 14,682 13,897 10,277 5,097 5,667 8,709 5,733 5,074 5,935 8,388 4,393

In U.S. dollars 1,127 1,659 1,607 1,273 451 383 662 512 474 781 1,130 553

Turnover ratio(%)

6.6 7.4 6.6 4.9 2.8 3.1 4.4 3.3 3.9 4.9 5.8 2.6


Indonesia 1998: (Currency in Millions) 296

Local Index

JSE Composite* 486.0 482.4 541.4 460.1 420.5 445.9 481.7 342.4 276.1 300.8 386.3 398.0

Change inindex (%)

21.0 −0.7 12.2 −15.0 −8.6 6.0 8.0 −28.9 −19.4 8.9 28.4 3.0

IFC Global Index

Number of stocks 62 62 62 62 62 62 62 62 62 62 58 58


71.1 66.9 69.0 64.8 68.7 70.4 71.3 67.2 61.0 62.6 69.2 70.7

Share oftrading value(%)

80.6 69.6 68.7 53.6 70.1 72.5 60.0 59.6 73.8 67.4 80.8 63.2

P/E ratio 12.8 12.6 14.7 11.8 10.7 11.7 −44.8 −31.7 −23.6 −28.3 −95.8 −106.2

P/BV ratio 1.7 1.6 1.9 1.5 1.4 1.5 1.6 1.2 0.8 1.0 1.4 1.5

Dividend yield(%)

2.3 2.4 2.0 2.5 2.7 2.3 0.8 1.0 1.4 1.3 0.9 0.8

Total returnindex*

23.3 27.2 32.5 28.0 17.1 14.2 18.0 15.3 11.6 17.9 26.2 25.5

Change in totalreturn index(%)

−35.0 16.9 19.2 −13.9 −38.7 −16.9 26.7 −15.4 −24.1 54.7 46.3 −2.5

Exchange Rates


10,500.008,850.00 8,650.00 8,075.00 11,300.0014,800.0013,150.0011,200.0010,700.007,600.00 7,425.00 7,950.00

Notes:The base date for the JSE Composite Index is Oct. 1982=100. The base date for the IFCG Indonesia Index is Dec. 1989=100. Market cap and value traded figures are for the Jakarta Stock

Exchange. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Jakarta Stock ExchangeMr. Cyril Noerhadi, President

Jl. Jend. Sudirman Kav. 52−53Jakarta, 12190IndonesiaTel: (62−21) 515−0515Fax: (62−21) 515−0330http://www.jsx.co.id


The Surabaya Stock ExchangeBibin Busono, President

Gedung Medan Pemuda 5th. Floor (Bank Exim)Jl. Pemuda 27−31Surabaya, Java Timur 60271, IndonesiaTel: (62−31) 531−0646, 531−0246Fax: (62−31) 531−0823, 531−9490http://www.bes.co.id


IFC Correspondent:Institute for Economic & Financial Research

Jl. Cik Ditiro No. 31Jakarta 10310IndonesiaTel: (62−21) 310−8057, 310−7058Fax: (62−21) 314−5584


Indonesia 1998: (Currency in Millions) 297

http://www.jsx.co.id

http://www.bes.co.id

Indonesia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Jakarta StockExchange

57 125 141 155 174 216 238 253 282 287


In rupiah (1/1,000) 4,050.0 15,264.6 13,537.0 24,839.5 69,299.6 103,835.2152,246.5215,026.1159,929.9175,729.0

In U.S. dollars 2,254 8,081 6,823 12,038 32,953 47,241 66,585 91,016 29,105 22,106

Trading Value

In rupiah(1/1,000) 957.0 7,318.1 5,778.3 7,909.2 19,088.1 25,488.0 32,358.4 74,829.9 120,384.799,684.7

In U.S. dollars 541 3,992 2,922 3,903 9,158 11,801 14,403 32,142 41,650 9,709

Turnover ratio (%) 38.6 75.8 40.1 41.2 40.5 29.4 25.3 40.7 64.2 59.4

Local Index

JSE Composite* 399.7 417.8 247.4 274.3 588.8 469.6 513.8 637.4 401.7 398.0

Change in index (%) 31.0 4.5 −40.8 10.9 114.6 −20.2 9.4 24.0 −37.0 −0.9

IFC Global Index

Number of stocks 57 84 73 63 41 47 50 50 62 58


− 64.3 77.5 72.0 55.0 47.0 56.6 69.4 67.1 70.7

P/E ratio 56.6 20.3 11.6 12.2 28.9 20.2 21.4 21.6 10.5 −106.2

P/BV ratio 5.8 3.4 1.6 1.6 3.1 2.4 2.7 2.7 1.4 1.5

Dividend yield (%) − 0.5 0.0 2.1 1.3 1.5 1.9 1.3 2.9 0.8


Change in index (%) − −0.6 −42.3 2.8 113.6 −19.4 12.0 19.9 −73.8 −28.8


Indonesia 1989−1998: (Currency in Millions; End of Period Levels) 298

Economic Data


101,455 114,426 128,168 139,116 158,007 176,892 202,132 227,370 214,995 −


6.4 7.8 9.4 7.5 9.7 8.5 9.4 8.0 6.7 −


1,797.0 1,889.0 1,984.0 2,063.5 2,103.0 2,198.0 2,286.5 2,362.5 5,495.0 7,950.0


1,770.1 1,833.3 1,977.6 2,026.6 2,084.2 2,159.8 2,246.6 2,328.1 2,890.4 10,267.8

Notes: The base date for the JSE Composite Index is Oct. 1982=100. The base date for the IFCG Indonesia Index is Dec.1989=100. Market cap and value traded figures are for the Jakarta Stock Exchange. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings.

Israel

Market Performance

Despite international market pressures, both the IFCI and IFCG indexes managed to gain ground in 1998 in localcurrency terms. Ongoing weakness in the shekel, however, erased the gains in dollar terms and the two series fellmore than 14%.

Share prices on the Tel Aviv Stock Exchange (TASE) dropped considerably early in the year, but managed tostabilize by the end of the first quarter. Political concerns—domestic worries over the stability of Prime MinisterBenjamin Netanyahu's coalition government and international fears stemming from the rising U.S.−Iraqitension—coupled with financial instability in Asia to drive down share prices. The Asian economies proveddoubly damning, as many Israeli export firms were active in Asia, and the instability that Asian declines promptedin New York (where many Israeli firms trade) were mirrored in Tel Aviv. Providing some comfort to investorsduring this period were lower−than−expected inflation figures for December 1997. Later in the period, a centralbank interest rate cut brought about the lowest rates in years and set the tone for much of the year. Stock pricesalso gained as Gulf tensions eased and New York equities recovered.

Stocks rebounded in April as a weakened shekel raised earnings prospects for exporters. Prices rose steadily inMay, slipping only periodically in response to volatility in emerging markets, following the crises in Asia andRussia. But the unstable shekel proved problematic during this period and through year's end, falling more than17% over the 12−month period.


Israel 299

Israeli equities fared better than most emerging markets in August, dropping about 11% in a month where theIFCI Composite Index plunged more than 28%, despite the country's close economic ties to international markets.Export−driven sectors were especially vulnerable and uneven price movements in New York and major Europeancenters further depressed local share prices. A significant interest rate cut, the eighth of the year, provided onlytemporary relief from selling pressure, and the market remained bearish until late November.

Israeli shares surged nearly 7% in the third week of November, allowing the IFC indexes to rally almost 8% forthe month. Political tension cast a shadow over the TASE earlier in the quarter, as the debate over the Wye RiverPeace Accord detracted attention from the equities market. The Bank of Israel's decision to counter inflation byraising lending rates helped the shekel strengthen slightly during the period.

Concerns for Israel's economy and domestic stability translated into a volatile market at year's end. Progress in thepeace process was tempered by the resignation of the finance minister and by a call from Prime MinisterNetanyahu for early elections. A rally at the end of December staved off further losses.break


IFCI Israel Index Correlation(24−month period ending 12/98)



Israel 300




Exchange Rate(shekel per U.S. dollar)

Israel 1998:(Currency in Millions)



Tel Aviv StockExchange

640 643 648 645 638 651 653 652 654 653 652 650


In shekel 146,819 156,062 166,584 169,009 178,713 176,523 176,670 164,673 157,567 155,922 163,644 164,857

In U.S. dollars 40,780 43,548 46,243 45,630 48,903 48,087 48,458 43,389 40,976 36,439 39,041 39,628

Trading Value

In shekel 2,622 2,629 4,112 3,160 4,401 4,204 2,734 4,087 3,266 3,445 4,085 4,171

In U.S. dollars 728 734 1,141 853 1,204 1,145 750 1,077 849 805 975 1,003

Turnover ratio (%) 1.8 1.7 2.5 1.9 2.5 2.4 1.5 2.4 2.0 2.2 2.6 2.5

Local Index


Israel 1998: (Currency in Millions) 301

Tel Aviv 100* 267.1 282.3 302.8 307.4 326.8 319.0 318.6 293.6 280.8 280.3 296.4 299.9

Change in index (%)−8.2 5.7 7.3 1.5 6.3 −2.4 −0.1 −7.8 −4.4 −0.2 5.8 1.2

IFC Global Index

Number of stocks 49 49 49 49 48 48 48 48 48 48 48 49


69.2 68.4 69.2 69.5 69.2 68.3 68.0 66.8 66.9 67.3 69.6 66.9


80.9 82.9 82.3 77.8 80.2 74.3 77.1 82.1 85.4 87.0 86.9 79.6

P/E ratio 13.2 13.7 15.0 15.4 15.0 15.4 15.1 14.2 12.2 11.9 13.0 13.3

P/BV ratio 1.3 1.3 1.5 1.5 1.5 1.4 1.4 1.3 1.3 1.2 1.3 1.2

Dividend yield (%) 1.8 1.7 1.6 1.7 1.4 1.4 1.9 1.9 1.8 2.0 1.8 1.9



−9.5 4.2 8.0 −1.5 7.4 −3.8 0.2 −11.5 −4.1 −10.8 8.0 0.7

Exchange Rates


3.6003 3.5837 3.6024 3.7039 3.6544 3.6709 3.6458 3.7953 3.8453 4.2790 4.1916 4.1601

Notes: The base date for the Tel Aviv 100 Index is Dec. 31, 1991=100. The base date for the IFCG Israel Index is Dec. 1996=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Tel Aviv Stock ExchangeProf. Yair Orgler, Chairman54, Ahad Maam StTel Aviv 65202IsraelTel: (972−3) 567−7411Fax: (972−3) 510−5379http://www.tase.co.il

IFC Correspondent:Bank Hapoalim62 Yehuda Halevi StTel Aviv 65227IsraelTel: (972−3) 567−4003, 567−5823Fax: (972−3) 567−4864http://www.bankhapoalim.co.il/national

Israel 1989−1998:(Currency in Millions; End of Period Levels)


Israel 1989−1998: (Currency in Millions; End of Period Levels) 302

http://www.tase.co.il

http://www.bankhapoalim.co.il/national

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Tel Aviv StockExchange

262 216 229 377 558 638 654 655 640 650


In shekel 16,149 6,807 14,100 81,907 151,607 98,779 114,150 116,629 160,132 164,857

In U.S. dollars 8,227 3,324 6,176 29,634 50,773 32,730 36,399 35,934 45,268 39,628

Trading Value

In shekel 7,491 11,160 19,121 36,134 85,828 75,609 27,569 25,644 37,004 42,916

In U.S. dollars 3,909 5,535 8,389 14,694 30,327 25,110 9,155 8,045 10,727 11,291

Turnover ratio (%) − − − − − − − − 26.7 26.4

Local Index

Tel Aviv 100* − − 100.0 204.8 245.0 173.6 208.2 211.0 291.0 299.9

Change in index (%) − − − 104.8 19.6 −29.1 19.9 1.3 37.9 3.1

IFC Global Index

Number of stocks − − − − − − − 42 49 49


− − − − − − − 64.5 69.4 66.9

P/E ratio − − − − − − − 15.2 14.3 13.3

P/BV ratio − − − − − − − 1.4 1.4 1.2

Dividend yield (%) − − − − − − − − 1.7 1.9

Total return index* − − − − − − − 100.0 124.4 106.5

Change in index (%) − − − − − − − − 24.4 −14.4

Economic Data


44,600 52,490 59,170 65,771 65,926 74,670 86,585 95,110 98,081 −


Israel 1989−1998: (Currency in Millions; End of Period Levels) 303


20.2 17.2 19.0 11.9 10.9 12.3 10.0 11.3 9.0 −


1.9630 2.0480 2.2830 2.7640 2.9860 3.0180 3.1361 3.2456 3.5374 4.1601


1.9164 2.0162 2.2792 2.4591 2.8301 3.0111 3.0113 3.1876 3.4495 3.8009

Notes: The base date for the Tel Aviv 100 Index is Dec. 31, 1991=100. The base date for the IFCG Israel Index is Dec.1996=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Jamaica

Market Performance

A gloomy economic environment weighed on Jamaican shares in 1998 as diminished demand and prices forJamaican commodities, such as bauxite and aluminum, undermined investor sentiment. High interest rates anddeclining credit exacerbated the island economy's banking crisis and caused more failing financial institutions tocome under government control. As a result, the IFCG Jamaica Index, which only tracks Jamaican−domiciledcompanies, tumbled 19.4% in Jamaican dollars and 21.3% in U.S. dollars. (The government's defense of theJamaican dollar capped the local currency's depreciation for the year to 2.32%.) In contrast, the local JamaicaStock Exchange Index, which includes cross−listed firms domiciled in other Caribbean countries, gained 3.8% inJamaican dollar terms.

The IFCG Jamaica Index dropped 5.3% in the first quarter as negative economic news depressed marketsentiment. In February, index constituent Caldon Finance Group entered into voluntary receivership, citing amismatch between long−term assets and short−term liabilities. News of a rise in the trade deficit to a recordUS$1.35 million and record losses in the insurance industry, topping J$1 billion (US$28.2 million), added to thepessimism and encouraged speculation against the currency by late March.

Equity returns were flat in the second quarter, as a June decline in short−term interest rates from 24% to 23%helped stem losses. Confidence in the financial sector deteriorated significantly by mid−quarter prompting thegovernment's Financial Sector Adjustment Agency to assume responsibility for more non−performing loans. InMay, the agency injected J$19.5 million into the still−viable NCB Financial Group. At the same time, trading wassuspended in three more index constituents, including Workers Savings & Loan. By June, the troubled financialsector was largely controlled by Bank of Nova Scotia and National Commercial Bank, which together hold morethan 90% of the capital of the entire banking system.


Jamaica 304

The IFCG Index sank 13.0% in the third quarter as international trade tensions and social unrest depressedequities. Caribbean governments reacted vehemently to U.S. threats to impose 100% punitive import duties onmore than 300 European Union products, unless changes were made to the EU's banana import regime. Socialdisaffection mounted late in the period when three people were killed during September rioting over the arrest ofseveral ruling party officials, and the parliament was attacked by a group claiming that government policiesfavored the rich. Stocks fell in October and November as the financial bailout pushed the fiscal deficit above 8%of GDP. The IFCG Index fell 9.7% over the period as local investors opted for bonds. In response to the growingdeficit, the government issued a one−year, 26.5% debenture in October. A second attempt to tap capital marketswas rebuffed in November, and the government was forced to announce spending cuts. September's social unrestsparked formation of a coalition of business leaders to contest the government's tenuous economic policy mix thathas led to a burgeoning fiscal deficit, high real interest rates, and an overvalued exchange rate. Year−endoptimism stoked a recovery in December, however, sending the IFCG Index 8.7% higher. Finance Minister OmarDavies was mildly optimistic about the island's economy, predicting that Jamaica would finally record economicgrowth in 1998. In spite of high unemployment, the market was also buoyed by news that consumer spendingincreased 36.1% in 1998.break


IFCG Jamaica Index Correlation(36−month period ending 12/98)




Exchange Rate(Jamaican dollars per U.S. dollar)


Jamaica 305


Jamaica 1998:(Currency in Millions)



Jamaica StockExchange

49 49 49 49 49 49 49 49 49 49 49 49


In Jamaica dollars 78,877.0 81,918.7 79,465.4 82,491.5 80,449.0 85,104.9 96,830.7 96,516.9 89,973.1 76,178.0 71,167.2 79,039.4

In US dollars 2,171.6 2,270.2 2,238.5 2,266.2 2,213.0 2,345.8 2,666.8 2,655.3 2,466.0 2,049.9 1,928.7 2,139.1

Trading Value

In Jamaica dollars 74.8 138.3 100.8 120.1 324.4 105.7 161.8 79.5 128.1 50.4 91.5 110.8

In US dollars 2.1 3.8 2.8 3.3 8.9 2.9 4.5 2.2 3.5 1.4 2.5 3.0

Turnover ratio (%) − 0.2 0.1 0.2 0.4 0.1 0.2 0.1 0.1 0.1 0.1 0.2

Local Index

JSE* 19,577.9 20,435.8 20,463.5 21,090.1 20,613.0 21,842.8 25,331.5 25,296.7 23,912.6 20,050.4 18,940.9 20,593.3

Change in index (%)−1.4 4.4 0.1 3.1 −2.3 6.0 16.0 −0.1 −5.5 −16.2 −5.5 8.7

IFC Global Index

Number of stocks 21 21 21 21 21 21 21 21 21 21 21 19


69.2 64.9 65.7 63.3 62.4 61.0 53.4 54.0 50.7 56.5 58.3 58.5


89.6 95.0 95.5 − 98.5 84.4 99.4 91.5 97.2 84.1 82.2 99.3

P/E ratio 7.8 7.9 7.7 7.3 6.8 6.9 7.1 7.4 6.5 6.1 6.3 5.6

P/BV ratio 1.1 1.0 1.0 1.1 0.9 0.9 0.9 0.9 0.8 0.8 0.7 0.8


Jamaica 1998: (Currency in Millions) 306

Dividend yield (%) 3.8 4.1 4.3 4.5 4.7 4.6 4.5 4.7 5.7 6.0 6.5 6.1



−3.2 −1.3 −0.2 −1.7 −3.1 3.6 −0.7 1.5 −12.5 −7.1 −1.7 9.8

Exchange Rates


36.3223 36.0845 35.5000 36.4002 36.3522 36.2800 36.3100 36.3483 36.4856 37.1620 36.9000 36.9500

Notes: The base date for the JSE Index is June 30, 1969=100. The base date for the IFCG Jamaica Index is Dec. 1995=100. In calculating shareof total market cap, IFCG market cap is not adjusted for cross holdings.

Jamaica Stock ExchangeMrs. R. Humphries−Lewin, ChairmanMr. C. Wain Iton, General Manager40 Harbour St.P.O. Box 1084Kingston, JamaicaTel: (876) 967−3271, 967−3272Fax: (876) 922−6966http://www.jamstockex.com

IFC Correspondent:Barita Investments Ltd.15 St. Lucia WayKingston 5JamaicaTel: (876) 929−2681Fax: (876) 929−8432http://www.baritagroup.com

Jamaica 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Jamaica StockExchange

45 44 44 48 50 50 51 46 49 49


In Jamaica dollars 6,200.0 7,320.0 22,215.0 76,974.3 41,879.3 58,018.1 50,755.8 66,116.3 79,619.6 79,039.4

In US dollars 956.8 910.7 1,033.6 3,227.4 1,469.4 1,752.7 1,270.4 1,887.3 2,205.9 2,139.1


Jamaica 1989−1998: (Currency in Millions; End of Period Levels) 307

http://www.jamstockex.com

http://www.baritagroup.com

Trading Value

In Jamaica dollars 516.0 230.0 1,157.0 4,678.3 8,346.8 5,155.5 11,560.4 1,435.7 2,691.3 1,486.1

In US dollars 89.8 32.0 95.5 386.1 336.3 157.6 340.7 38.5 75.9 40.9

Turnover ratio (%) − 3.4 7.8 9.4 14.0 10.3 21.3 2.5 3.7 1.9

Local Index

JSE* 2,075.8 2,539.4 7,681.5 25,745.9 13,099.7 16,676.7 14,267.0 16,616.0 19,846.7 20,593.3

Change in index (%) 44.2 22.3 202.5 235.2 −49.1 27.3 −14.4 16.5 19.4 3.8

IFC Global Index

Number of stocks − − − − − − 22 22 22 19


− − − − − − 823 77.7 71.1 58.5

P/E ratio − − − − − − − 8.5 8.8 5.6

P/BV ratio − − − − − − − 1.0 1.1 0.8

Dividend yield (%) − − − − − − − 9.3 3.8 6.1

Total return index − − − − − − 100.0 145.1 161.5 134.5


− − − − − − − 45.1 11.3 −16.7

Economic Data


4,105 4,239 3,737 3,185 4,002 4,001 4,181 4,070 4,135 6,607


14.3 22.0 51.1 77.3 22.1 35.1 19.9 26.4 9.7 −


6.4800 8.0380 21.4925 23.8500 28.5000 33.1030 39.9520 35.0328 36.0937 36.9500


5.7446 7.1840 12.1159 12.1159 24.8200 32.7042 33.9325 37.2774 35.4740 36.4637

Notes: The base date for the JSE Index is June 30, 1969=100. The base date for the IFCG Jamaica Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Jordan


Jordan 308

Market Performance

Foreign investor activity dried up on the Amman Finance Market (AFM) in 1998, as regional events and domesticeconomic concerns took their toll on investors, allowing the bearish sentiment characterizing the market since theprevious summer to continue. Heightened tensions between the United States and Iraq continued through much ofthe year, causing great concern for Jordan's economic growth. Because Iraq is Jordan's single−largest tradingpartner, a disruption of ties between the two would have serious ramifications for the marketplace. Also, startingat mid−year, fears concerning King Hussein's health were at the forefront when he flew to the U.S. for cancertreatments. After a rough start, however, Jordanian equities staged a strong mid−year performance and ended1998 as one of the few IFCI markets to post gains. The dollar−based IFCI Jordan Index finished the year up 3.0%.

Turnover was light in early 1998, with little foreign investor activity to compensate for the sluggish local tradecommon during the observance of Ramadan. Following the mid−January 'Eid holiday, fears that Washingtonwould use force to make Saddam Hussein comply with U.N. resolutions depressed prices. Foreign investorsremained firmly on the sidelines until trading resumed, following the successful conclusion of negotiations onFebruary 23 between Iraq and the U.N. Trading activity was focused on Jordanian drug and industrial stocks withsubstantial commercial interests in Iraq. An agreement with Israel to strengthen economic relations between thetwo states was signed, and government attempts to assert control over the funds industry prompted some funds toliquidate their assets, flooding the AFM with excess shares.

Positive factors spurring a second−quarter boost included the release of well−received 1997 earnings anddomestic enthusiasm for blue chips trading at attractive valuations. Weeks of solid gains lifted the IFCI Index inApril and May. The government repealed its plans to regulate provident and savings funds, and the rallycontinued as local investors moved in to buy firms that posted healthy earnings for 1997. Optimism that highdividend levels would be forthcoming was bolstered when several blue chips announced bonus shares. The IFCIIndex fell throughout most of June, however, but picked up at month's end as portfolio managers bought shares towindow−dress their mid−year holdings. The stalled Middle East peace process remained a cause for concern,however. King Hussein flew to the U.S. to begin cancer treatment in late July.

Jordanian shares closed almost flat in August, proving to be an anomaly during the volatility affecting mostemerging markets. Domestic demand was boosted by the release of positive earnings reports, but foreign moneyretreated from emerging markets in general. The Jordanian market then dropped in September, although lowforeign investor interest protected stocks from the severe volatility seen on international markets. Trading wasthin and high interest rates pulled investors away from equities. In other news, the AFM announced newdisclosure requirements in the form of quarterly financial reports, and Bassam al−Saket was appointed chief of theJordan Securities Commission.

Shares later benefited from plans to privatize part of Jordan Cement Factory. The sale of the government's stake inJordan Cement was widely cheered as a shot in the arm to the state privatization program. The successful sale to


Market Performance 309

French firm LaFarge provided a boost to blue chips for the rest of the year.break


IFCI Jordan Index Correlation(5−year period ending 12/98)





Exchange Rate(dinar per U.S. dollar)

Jordan 1998:(Currency in Millions)



146 146 147 147 146 148 148 148 150 150 150 150


Jordan 1998: (Currency in Millions) 310

Amman FinancialMarket


In dinars 3,836 4,039 3,967 4,039 4,278 4,173 4,260 4,251 4,112 3,923 3,999 4,157

In U.S. dollars 5,400 5,680 5,580 5,677 6,016 5,870 5,996 5,970 5,784 5,510 5,616 5,838

Trading Value

In dinars 20 23 48 32 32 23 51 37 20 24 9 5 60

In U.S. dollars 28 32 67 45 45 33 72 52 28 33 134 84

Turnover ratio (%) 0.5 0.6 1.2 0.8 0.8 0.5 1.2 0.9 0.5 0.6 2.4 1.5

Local Index

AFM General* 166.8 169.6 165.8 170.3 179.8 174.6 180.2 179.5 171.3 161.8 165.2 170.1

Change in index (%) −1.4 1.7 −2.3 2.7 5.6 −2.9 3.2 −0.4 −4.6 −5.5 2.1 3.0

IFC Global Index

Number of stocks 44 44 44 44 44 44 44 44 44 44 41 41


80.7 77.6 77.3 81.4 82.6 81.9 83.0 83.1 81.9 80.6 81.0 80.0


72.6 76.7 83.7 79.3 79.7 75.1 85.2 58.9 77.3 80.2 20.9 77.6

P/E ratio 14.3 14.5 13.3 14.3 15.7 15.0 16.5 16.6 16.0 15.1 15.6 15.9

P/BV ratio 1.8 1.8 1.6 1.6 1.8 1.7 1.8 1.8 1.8 1.7 1.7 1.8

Dividend yield (%) 2.1 2.0 2.1 2.3 2.0 2.1 2.0 1.9 2.0 2.1 1.8 1.8



−0.5 0.9 −0.5 4.2 9.0 −4.2 6.5 0.2 −3.8 −6.0 3.0 2.6

Exchange Rates

Exchange rates (end ofperiod)

0.7105 0.7110 0.7110 0.7115 0.7110 0.7110 0.7105 0.7120 0.7110 0.7120 0.7120 0.7120


Jordan 1998: (Currency in Millions) 311

Notes: The base date for the AFM General Index is Dec. 1991=100. The base date for the IFCG Jordan Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Amman Financial MarketDr. Bassam al−Saket, ChairmanJordan Securities CommissionP.O. Box 8802Amman, JordanTel: (962−6) 607−216,660−170Fax: (962−6) 686−830http://www.accessme.com/AFM/

IFC Correspondent:Amman Financial MarketP.O. Box 8802AmmanJordanTel: (962−6) 607−216, 660−170Fax: (962−6) 686−830http://www.accessme.com/AFM/

Jordan 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Amman FinancialMarket

106 105 101 103 101 95 97 98 139 150


In dinars 1,378 1,283 1,691 2,269 3,360 3,234 3,311 3,230 3,863 4,157

In U.S. dollars 2,162 2,001 2,512 3,365 4,891 4,594 4,670 4,551 5,446 5,838

Trading Value

In dinars 365 266 292 879 933 430 362 211 355 464

In U.S. dollars 652 407 432 1,317 1,377 626 517 297 501 653

Turnover ratio (%) 29.9 20.0 19.6 44.4 33.1 13.0 11.1 6.5 10.0 11.6

Local Index

AFM General* 93.3 80.4 100.0 129.9 158.4 143.6 159.2 153.5 169.2 170.1

Change in index (%) 10.4 −13.8 24.4 29.9 22.0 −9.4 10.8 −3.6 10.3 0.5

IFC Global Index


Jordan 1989−1998: (Currency in Millions; End of Period Levels) 312

http://www.accessme.com/AFM/

http://www.accessme.com/AFM/

Number of stocks 25 25 29 27 29 42 50 51 44 41


70.2 74.3 62.7 59.1 52.0 60.7 74.6 74.1 81.2 80.0

P/E ratio 14.4 7.8 10.0 14.5 17.9 20.8 18.2 16.9 14.4 15.9

P/BV ratio 1.6 1.4 1.4 1.6 2.0 1.7 1.9 1.7 1.8 1.8

Dividend yield (%) 2.4 6.5 8.7 2.5 2.7 2.4 1.9 2.3 2.1 1.8


Change in index (%) −1.1 4.3 15.2 24.7 24.1 −9.7 12.7 −1.3 14.5 10.8

Economic Data


4,128 4,020 4,193 5,138 5,487 6,037 6,591 6,793 7,015 −


25.7 16.2 8.2 4.0 3.3 3.5 2.4 6.5 3.0 −


0.6376 0.6409 0.6730 0.6742 0.6870 0.7040 0.7090 0.7098 0.7093 0.7120


0.5599 0.6544 0.6762 0.6671 0.6776 0.6880 0.7010 0.7094 0.7094 0.7112

Notes: The base date for the AFM General Index is Dec. 1991=100. The base date for the IFCG Jordan Index is Dec.1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Kenya

Market Performance

Despite the successful re−election of President Daniel Arap Moi in January and its obvious effect of helpingensure continuity in the government and of strengthening sentiment on the stock market, the shilling−basedNairobi Stock Exchange (NSE) Index lost more than 4% in 1998. The more narrowly focused IFCG Kenya Index,however, gained more than 13.8% in dollar terms.

Shares moved higher through mid−January with domestic investors, who had stayed away from equities ahead ofthe elections, returning to the Nairobi exchange and boosting buying activity. Shares slid in the last weeks of themonth as ethnic killings, which claimed more than 85 lives in a two−week period, pushed foreign investors to thesidelines and reversed local investor sentiment. The downtrend continued throughout February and March aslower−than−expected 1997 profits for some firms drove investors to profit−taking. The switch to higher−yieldinggovernment securities, coupled with a turn toward investing in Treasury bills because of rising interest ratesbrought the market down at the close of the second quarter.

Shares finally began to rebound in June, and thanks to a strong shilling, the dollar−based IFCG Index posted again of 7.5% for the month. Volume and turnover for June also dramatically increased as a result of FinanceMinister Simeon Nyachae's announcement of a new deficit−fighting budget. As a result, the period finished withstrong returns, as government efforts helped draw investors back into equities and away from the security of


Kenya 313

Treasury bills.

The positive results were short−lived, however, as terrorists bombed the U.S. Embassy in Kenya, shattering thelives of many and clouding the future of Kenyan equities. As a result of the attack, foreign investors remainedwary throughout the third quarter, keeping their distance from the Kenyan market. High interest rates alsodampened investors' enthusiasm for equities as the government benchmark 91−day Treasury bill exceeded a23.5% yield. An increase in foreign investor selling and a large reduction in local interest highlighted the market'spessimism.

By October, the stock exchange had fallen to a four−and−a−half−year low. During the month, the local NSEIndex dropped 2.7% in shillings, while the IFCG Index fell 0.8% in dollars. Local market attitudes, however,remained cautiously optimistic that a recent decrease in domestic interest rates combined with government effortsto balance the budget would be enough to draw investors away from Treasury bills and back into the equitymarket. By December, Kenyan shares posted substantial gains, rallying from the previous two months oflackluster performance. The bourse ended the year posting its 19th gain in 20 sessions, bringing renewedexcitement into the market.break


IFCG Kenya Index Correlation(36−month period ending 12/98)



Kenya 314




Exchange Rate(shillings per U.S. dollar)

Kenya 1998:(Currency in Millions)



Nairobi StockExchange

58 58 58 58 58 58 58 58 58 58 58 58


In shillings 124,180.9123,786.8119,994.3112,597.4117,218.2118,949.0116,413.4115,248.9112,519.2109,321.9105,919.1125,575.2

In USdollars

2,069.7 2,063.1 1,999.9 1,890.8 1,846.0 1,999.1 1,971.4 1,940.2 1,873.8 1,832.7 1,763.8 2,023.8

Trading Value

In shillings 266.8 494.8 613.7 212.8 351.4 416.3 390.6 412.3 420.0 248.8 401.0 520.7

In USdollars

4.4 8.2 10.2 3.6 5.5 7.0 6.6 6.9 7.0 4.2 6.7 8.4

Turnoverratio (%)

0.0 0.4 0.5 0.2 0.3 0.3 0.3 0.4 0.4 0.2 0.4 0.4

Local Index


Kenya 1998: (Currency in Millions) 315

NSE* 3,348.1 3,362.2 3,213.3 3,015.0 3,016.4 2,908.5 2,868.2 2,862.7 2,810.3 2,733.7 2,583.7 2,962.1

Change inindex (%)

7.4 0.4 −4.4 −6.2 0.0 −3.6 −1.4 −0.2 −1.8 −2.7 −5.5 14.6

IFC GlobalIndex

Number ofstocks

17 17 17 17 17 17 17 17 17 17 17 17


78.5 79.3 77.9 76.1 78.0 77.7 77.7 77.6 77.0 78.2 78.2 80.3


79.5 74.2 55.9 53.6 66.6 73.7 80.2 77.6 50.0 84.1 81.9 48.5

P/E ratio 8.5 8.5 8.2 7.2 7.8 7.8 7.6 6.8 6.4 6.8 6.6 8.1

P/BV ratio 1.6 1.6 1.6 1.4 1.5 1.5 1.4 1.4 1.4 1.4 1.3 1.6

Dividendyield (%)

9.3 9.2 10.6 10.4 9.8 10.0 10.1 10.2 8.9 7.2 7.3 5.9

Total returnindex*

109.4 110.0 108.1 99.6 100.6 108.5 106.6 106.4 103.3 102.5 99.8 118.9


11.3 0.5 −1.8 −7.8 1.0 7.8 −1.8 −0.1 −2.9 −0.8 −2.6 19.2

Exchange Rates


60.0000 60.0000 60.0000 59.5500 63.5000 59.0500 59.4000 60.0500 59.6500 60.0500 62.0500

Notes:The base date for the NSE Index is Jan. 1, 1964=100. The base date for the IFCG Kenya Index is Dec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross

holdings.

Nairobi Stock ExchangeP.O. Box 43633

1st F., Nation CentreNairobiKenyaTel: (254−2) 230−692Fax: (254−2) 224−200http://www.africaonline.co.ke/stockexchange.bin

IFC Correspondent:Loita Asset Management Ltd.

16th Floor, Ambank HouseUniversity WayNairobiKenyaTel: (254−2) 219−015, 219−033Fax: (254−2) 218−992


Kenya 1998: (Currency in Millions) 316

http://www.africaonline.co.ke/stockexchange.bin

Kenya 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Nairobi StockExchange

57 54 53 57 56 56 56 56 58 58


In shillings 10,780.0 10,902.0 12,706.0 23,063.0 72,395.0 136,831.0105,527.0101,539.8114,181.3125,575.2

In US dollars 499.1 452.7 452.6 636.8 1,059.9 3,081.8 1,886.1 1,846.2 1,824.0 2,023.8

Trading Value

In shillings − 235.0 302.0 384.0 825.2 3,076.0 3,348.8 3,835.3 6,125.6 4,749.1

In US dollars − 10.3 11.0 11.9 14.2 62.1 65.1 67.1 104.4 78.7

Turnover ratio (%) − 2.2 2.6 2.1 1.7 2.9 2.8 3.7 5.7 4.0

Local Index

NSE* 815.8 915.3 958.3 1,167.3 2,513.7 4,559.4 3,468.9 3,114.1 3,115.1 2,962.1

Change in index (%) −5.0 12.2 4.7 21.8 115.3 81.4 −23.9 −10.2 0.0 −4.9

IFC Global Index

Number of stocks − − − − − − 16 17 17 17


− − − − − − − 78.5 80.2 80.3

P/E ratio − − − − − − − 6.6 7.9 8.1

P/BV ratio − − − − − − − 1.5 1.5 1.6

Dividend yield (%) − − − − − − − 10.3 10.5 5.9



− − − − − − − −0.4 −1.3 21.0


Kenya 1989−1998: (Currency in Millions; End of Period Levels) 317

Economic Data


8,341 8,533 8,043 7,951 5,752 7,149 9,054 9,244 10,240 −


12.9 15.6 19.8 29.5 45.8 29.0 0.8 8.8 12.0 −


21.6010 24.0840 28.0741 36.2163 68.3060 44.4000 55.9500 55.0000 62.6000 62.0500


20.5725 22.9150 27.5079 32.2170 58.0010 49.5000 51.4300 57.1456 58.6641 60.3539

Notes: The base date for the NSE Index is Jan. 1, 1964=100. The base date for the IFCG Kenya Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Korea

Market Performance

The Korean stock exchange finished 1998 as the best−performing emerging market in dollar terms as sweepingreforms countered the country's worst financial crisis. Investors who braved the market were greatly rewarded asthey re−evaluated corporate Korea and its underlying fundamentals. Their gamble paid off handsomely when thedollar−denominated IFCI and IFCG Korea indexes chalked up extraordinary gains of 121.1% and 118.8%,respectively, while the won−based Korea Composite Index (KOSPI) capped the year with a 49.5% return.

In retrospect, the phenomenal gains in the first quarter of 1998 proved to be a knee−jerk reaction by foreigninvestors hoping for an immediate recovery. Toward the end of the quarter, more realistic sentiments prevailed asthe release of economic indicators painted a very sobering picture of the bloodletting to follow. Nevertheless, thetemporary upswing in confidence did breathe new life into the market as the KOSPI Index rose by 27.8% whilethe dollar−based IFCI Index zoomed up 58.1%, partly from the 22.4% appreciation of the won.

Reality set in the following quarter when the market was besieged on from numerous fronts: a faltering bankingsector, rising labor unrest, and a weakening yen proved too powerful even for the most risk−seeking investor. Theproblems besetting the banking sector reached their apex after the Financial Supervisory Commission announcedthe forced merger of five ailing banks with healthier ones before the end of the year. The release of April's 6.7%jobless rate, a 12−year high, precipitated a high degree of labor unrest during the period. The yen'ssix−and−a−half−year low against the dollar, a primary factor in determining Korea's competitive exportadvantage over its Japanese counterparts, spurred a month−on−month decline of 22.9% for the IFCI Index inMay. Second−quarter losses stood at 36.5% for the index.


Korea 318

Third−quarter results were relatively flat despite a 28% appreciation of the won, which resulted in a 28% increasein the IFCI Korea Index in July. The won's exchange rate of 1,208 per dollar in late July reflected a 50%appreciation over six months. This wasn't enough to entice foreign investors back into the market as share priceswere battered by the Russian meltdown, yen depreciation, lower first−half GDP figures, rising unemployment,and labor disputes. The IFCI Korea Index shed only 2.1% for the quarter, respectable considering the backdrop ofevents. The first and last quarters of 1998 really spelled the difference for South Korean equities this year. Asincere effort to shore up its financial sector and the political will to mete out reforms yielded a staggering124.6% gain in the IFCI Index in the fourth quarter alone. Three factors precipitated the phenomenal gains: thewon appreciated an additional 15.7% during the period; the yen strengthened to an unexpected 115 yen−to−dollarrate, which is beneficial to Korean exports; and finally, because of the won's stability, there was a full turn inmonetary policy, allowing interest rates to drop from a high of 30% earlier in the year to about 7%.

In exchange news, the foreign investment limit on Korean securities was lifted on May 22 with the followingexceptions: KEPCO & POSCO (30%), mining (49.99%), air transportation (49.99%), and information andcommunication (33%).break


IFCI Korea Index Correlation(5−year period ending 12/98)



Korea 319




Exchange Rate(won per U.S. dollar)

Korea 1998:(Currency in Millions)



Korea StockExchange

776 776 776 776 773 772 762 760 760 752 750 748


In won (1/1,000) 106,214 108,477 93,820 82,815 66,058 60,819 71,474 64,673 65,049 89,559 100,771 137,798

In U.S. dollars 69,694 66,428 67,740 61,964 46,933 44,297 58,085 47,888 46,773 67,874 80,875 114,593

Trading Value

In won (1/1,000) 18,966 20,414 15,723 9,514 8,058 8,262 12,349 8,822 9,405 14,589 23,047 43,696

In U.S. dollars 12,445 12,501 11,352 7,118 5,725 6,018 10,036 6,532 6,763 11,056 18,497 36,338

Turnover ratio (%) 21.4 19.0 15.5 10.8 10.8 13.0 18.7 13.0 14.5 18.9 24.2 36.6

Local Index


Korea 1998: (Currency in Millions) 320

KOSPI* 567.4 558.9 481.0 421.2 332.0 297.8 343.3 310.1 310.0 403.4 451.8 562.4

Change in index (%) 50.8 −1.5 −13.9 −12.4 −21.2 −10.3 15.3 −9.7 0.0 30.1 12.0 24.5

IFC Global Index

Number of stocks 195 195 195 195 195 195 195 195 195 195 181 180


79.8 81.3 81.7 84.7 86.4 83.6 81.8 82.2 83.0 76.4 80.2 74.9


70.6 64.0 62.9 61.1 67.0 67.7 73.0 56.9 54.0 75.4 72.3 72.3

P/E ratio 27.8 26.3 23.3 20.8 −26.6 −13.3 −15.2 −13.7 −14.5 −18.3 −35.0 −47.1

P/BV ratio 0.8 0.8 0.7 0.6 0.5 0.4 0.5 0.5 0.4 0.6 0.7 0.9

Dividend yield (%) 1.1 1.1 1.2 1.3 1.6 1.9 1.6 1.8 1.8 1.4 1.3 0.9



70.9 −7.3 1.0 −7.7 −23.2 −11.2 28.4 −19.4 −4.4 32.8 22.5 37.1

Exchange Rates


1,524.0 1,633.0 1,385.0 1,336.5 1,407.5 1,373.0 1,230.5 1,350.5 1,390.8 1,319.5 1,246.0 1,202.5

Notes: The base date for the KOSPI is Jan. 1980=100. The base date for the IFCG Korea Index is Dec. 1984=100. In calculating share oftotal market cap, IFCG market cap is not adjusted for cross holdings.

Korea Stock ExchangeMr. In−Kie Hong, Chairman & CEO33 Yoido−dongYongdeungpo−kuSeoul, 150−010KoreaTel: (82−2) 3774−9000Fax: (82−2) 786−0263http://www.kse.or.kr

IFC Correspondent:Korea Securities Finance Corp.34−9 Yeouido−DongYongdeungpo−KuSeoulKoreaTel: (82−2) 3770−8574Fax: (82−2) 784−0243

Korea 1989−1998:(Currency in Millions; End of Period Levels)


Korea 1989−1998: (Currency in Millions; End of Period Levels) 321

http://www.kse.or.kr

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Korea Stock Exchange626 669 686 688 693 699 721 760 776 748


In won (1/1,000) 95,476.8 79,019.7 73,117.8 84,712.0 112,665.3151,217.2141,151.4117,370.070,988.9 137,798.5

In U.S. dollars 140,946 110,594 96,373 107,448 139,420 191,778 181,955 138,817 41,881 114,593

Trading Value

In won(1/1,000) 81,200.0 53,454.0 62,565.0 90,624.0 169,920.0229,772.0142,913.0142,642.0162,281.0192,845.0

In U.S. dollars 121,264 75,949 85,464 116,101 211,710 286,056 185,197 177,266 170,237 137,859

Turnover ratio (%) 101.5 61.3 82.3 114.8 172.2 174.1 97.8 110.3 172.3 184.7

Local Index

KOSPI* 909.7 696.1 610.9 678.4 866.2 1,027.4 882.9 651.2 376.3 562.5

Change in index (%) 0.3 −23.5 −12.2 11.0 27.7 18.6 −14.1 −26.2 −42.2 49.5

IFC Global Index

Number of stocks 61 77 92 91 134 162 162 162 195 180


45.7 57.4 62.9 61.9 65.6 65.2 68.0 63.6 79.2 74.9

P/E ratio 28.1 16.4 21.3 21.4 25.1 34.5 19.8 11.7 17.9 −47.1

P/BV ratio 2.2 1.3 1.0 1.1 1.4 1.6 1.3 0.8 0.5 0.9

Dividend yield (%) 1.3 0.5 1.6 1.8 0.6 1.3 1.4 2.3 3.0 0.9


Change in index (%) 7.0 −25.4 −15.9 3.6 20.9 19.1 −6.9 −38.2 −68.7 122.0

Economic Data


222,151 253,671 294,175 307,938 332,821 380,820 456,357 484,571 442,543 −


Korea 1989−1998: (Currency in Millions; End of Period Levels) 322


5.7 8.6 9.3 6.2 4.8 6.2 4.5 4.9 4.4 −


677.400 714.500 758.700 788.400 808.100 788.500 775.750 845.500 1,695.0001,202.500


669.610 703.815 732.065 780.563 802.606 803.240 771.679 804.677 953.266 1,398.854

Notes: The base date for the KOSPI is Jan. 1980=100. The base date for the IFCG Korea Index is Dec. 1984=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Latvia

Market Performance

The Latvian stock market spiraled lower in 1998, as worse−than−expected corporate results, an emerging marketsell−off by foreign funds, and political disputes with Russia, Latvia's largest trading partner, combined forces todrive the market lower. Concern about the Latvian market's exposure to Russian financial turmoil also fed lossesin the latter half of 1998. For the year, the dollar−based IFCG Latvia Index lost 67.4%.

The stock market moved slightly lower in the first quarter of 1998, as foreign investors remained sidelined amidconcern over the Asian meltdown's domino impact on emerging markets. Domestic investors were more cautiousthan ever, resulting in low liquidity, while the majority of activity was concentrated in a few blue chips. The RigaStock Exchange launched a new real time price−weighted RICI Index in the first quarter in response to demandfrom investors. Bearish sentiment prevailed at the end of the quarter amid pessimistic expectations for 1997results, due out in late March and April, and deteriorating relations with Russia.

On April 7, 1998, IFC announced the launching of the IFCG Latvia Index, along with new indexes for Croatia,Estonia, Romania, and the Ukraine. Frontier market indexes are calculated on a monthly, rather than daily basis,and are not included in the IFC Global Composite Index. The Latvian index has fourteen stocks, dominated byUnibanka, which represents about 43% of market capitalization.

Share prices shifted lower in the second quarter on worries over tensions with Russia and concerns over corporateearnings. Companies that rely heavily on sales to Russia were particularly vulnerable during April, followingthreats by Russia of trade sanctions against Latvia in response to political disputes. Falling prices in EasternEurope and the lower−than−expected first−quarter company results caused the Latvian equity market to postserious losses in May, with the IFCG Index declining by 14.2%. The fall continued through June as many Latvianshares drifted to all−time lows. Trading stagnated in response to the trade dispute with Russia, anxieties over fallparliamentary elections, and uncertainty over the future of the privatization process.


Latvia 323

The market's stagnation continued in the third quarter amid fear that Russia would impose trade sanctions. TheIFCI Index lost 39.3% in August, seriously affected by financial crisis in Russia. Adding fuel to the fire weredisclosures by Latvian companies of large exposures to Russia. Latvian banks' total exposure amounted to 7% oftheir assets, mainly in Russian domestic debt. The pessimistic mood continued in September as domestic andforeign investors joined in selling shares with high exposure to Russia. Cautious sentiment ahead of the fallgeneral elections reduced volatility by quarter's end.

Weak third−quarter results and uncertainty over the exposure of Latvian companies to Russia dampenedsentiment in October. The outcome of the general elections did not alleviate uncertainty, for although thepro−business People's Party won, investors decided to wait until the new government was announced. Parliamentapproved the country's new minority coalition government in November, which helped to lift the IFCG Index.The new government promised to speed up the country's integration into the European Union and to improve itsrelationship with Russia. The rebound continued into December, while domestic investors targeted undervaluedshares of small companies.break


IFCG Latvia Index Correlation(12−month period ending 12/98)



Latvia 324




Exchange Rate(lats per U.S. dollar)

Latvia 1998:(Currency in Millions)



Riga Stock Exchange51 52 54 56 61 65 64 64 63 65 69 69


In lats 188.7 194.3 233.0 244.2 216.7 201.8 194.4 142.5 140.7 199.8 214.0 218.3

In US dollars 319.7 330.8 392.7 411.1 363.0 335.3 324.6 237.2 241.3 351.8 368.9 382.4

Trading Value

In lats 4.6 3.5 5.8 7.2 4.7 3.6 3.7 5.1 4.3 2.5 3.1 2.2

In US dollars 7.7 6.0 9.7 12.1 7.9 5.9 6.2 8.6 7.4 4.5 5.3 3.8

Turnover ratio (%) 0.1 1.8 2.7 3.0 2.0 1.7 1.9 3.0 3.1 1.5 1.5 1.0

Local Index


Latvia 1998: (Currency in Millions) 325

Dow Jones RSE* 325.4 325.6 306.3 285.4 247.8 206.8 206.0 124.4 113.5 88.3 96.8 98.0

Change in index (%) −5.9 0.0 −5.9 −6.8 −13.2 −16.5 −0.4 −39.6 −8.8 −22.1 9.6 1.2

IFC Global Index

Number of stocks 11 11 11 11 11 11 11 11 11 11 11 14


75.1 73.4 57.1 51.5 50.1 45.7 47.3 39.4 37.2 20.0 21.4 26.8


87.3 76.9 84.2 87.8 65.7 63.4 79.9 63.0 86.4 69.4 74.3 81.3

P/E ratio 14.4 13.0 12.1 11.9 6.1 6.4 6.4 5.4 4.9 3.8 4.4 7.1

P/BV ratio 1.5 1.5 1.3 1.2 0.5 0.9 0.9 0.3 0.3 0.2 0.2 0.4

Dividend yield (%) − − − − − − − − − − − 7.1



−6.8 1.3 −7.5 −3.8 −13.3 −15.7 0.5 −39.3 −5.3 −20.4 12.1 6.7

Exchange Rates


0.5903 0.5873 0.5933 0.5940 0.5970 0.6020 0.5990 0.6010 0.5830 0.5680 0.5800 0.5710

Notes: The base date for the Dow Jones RSE Index is Apr. 2, 1996=100. The base date for the IFCG Latvia Index is Dec.1997=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Riga Stock ExchangeMr. Uldis Cerps, PresidentDoma Laukums 6Riga, LV 1885LatviaTel: (371−7) 212−431Fax: (371−7) 820−504http://www.rfb.lv

IFC Correspondent:Riga Stock ExchangeDoma Laukums 6Riga, LV 1885LatviaTel: (371−1) 212−431Fax: (371−1) 820−504http://www.rfb.lv

Latvia 1989−1998:(Currency in Millions; End of Period Levels)


Latvia 1989−1998: (Currency in Millions; End of Period Levels) 326

http://www.rfb.lv

http://www.rfb.lv

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Riga Stock Exchange − − − − − − 17 34 51 69


In lat − − − − − − 5.3 84.2 198.8 218.3

In US dollars − − − − − − 9.8 151.4 337.5 382.4

Trading Value

In lat − − − − − − − 6.5 48.9 50.4

In US dollars − − − − − − − 11.9 84.2 85.6

Turnover ratio (%) − − − − − − − 14.6 34.6 1.4

Local Index

Dow Jones RSE* − − − − − − − − 345.9 98.0

Change in index (%) − − − − − − − − − −71.7

IFC Global Index

Number of stocks − − − − − − − − 11 14


− − − − − − − − 58.7 26.8

P/E ratio − − − − − − − − 11.9 7.1

P/BV ratio − − − − − − − − 1.2 0.4

Dividend yield (%) − − − − − − − − − 7.1



− − − − − − − − − −66.3

Economic Data


11,552 12,488 11,025 6,358 5,315 5,461 6,248 5,134 5,527 −


Latvia 1989−1998: (Currency in Millions; End of Period Levels) 327


− − − − − − − − − −


− − − − − − 0.5370 0.5560 0.5890 0.5710


− − − − − − 0.5280 0.5510 0.5810 0.5890

Notes: The base date for the Dow Jones RSE Index is Apr. 2, 1996=100. The base date for the IFCG Latvia Index isDec. 1997=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Lithuania

Market Performance

The Lithuanian stock market fell through most of 1998, initially on negative sentiment among foreign investorstoward emerging markets and later on Russian financial turmoil. The market recovered slightly at year's end amidhealthy earnings posted by blue chips. But the overall trend was decidedly negative, with the dollar−based IFCGLithuania Index plunging 39.2% over the year.

Uncertainty over emerging markets pushed stock prices steadily lower in January and February. Foreign investorswithdrew from the region at the onset of the Asian crisis, and for several months low liquidity and steady losseswere standard features of regional stock markets. Local investors kept to the sidelines to await 1997 corporateresults. Equities and trading activity soared in March, however, with the IFCG Lithuania Index surging 12.9% indollar terms and value traded tripling. The market was boosted by healthy 1997 earnings and by preliminaryreports that GDP expanded 5.7% in 1997, a rise from 1996 growth of 4.7%. In other economic news, thegovernment reported in February that the country's foreign debt rose to $1.402 billion in 1997 from $1.157 billionin 1996, while the trade deficit rose by 46%.

Trading activity and prices were flat in April, as brokers familiarized themselves with a new trading system thatpermitted them to see high bids, low offers, and average prices. Selling pressures resumed in May and continuedthrough the rest of the second quarter. The banking sector came under heavy pressure on news that the merger ofVilniaus Bank and Hermis Bank had been called off. In economic news, the government predicted it wouldbalance its budget deficit by the year 2000, a year later than forecasted. The central bank said the litas would bepegged to a basket of European currencies and the U.S. dollar by the middle of 1999.


Lithuania 328

Share prices continued to fall in July despite positive economic news of lower inflation and higher growth.Trading activity was predictably sluggish as summer vacations drew many investors from the market. The marketplunged in August, however, on concerns about local companies' exposure to the Russian crisis and worries aboutinvestors pulling funds out of Eastern Europe. As a result of this bearish pressure, the local LITIN Index droppedbelow its historical low of 573.53. The fall continued into September with banking and dairy product industriesleading the downturn. To offset the effect of the Russian turmoil and alleviate the budget deficit, the Lithuaniangovernment continued privatizing state−held companies, boosting foreign currency reserves, and repurchasingT−bills. The total 1998 privatization proceeds amounted to $582 million.

Prices stabilized in the fourth quarter and began a slow recovery as companies posted healthy third−quarterresults. Foreign investors re−entered the market by the end of October to take positions in steeply undervaluedblue chips. The market ended 1998 cautiously optimistic. Although foreign investors were passive ahead of theyearend holidays, local investors boosted activity amid rumors of fresh foreign interest in blue chips.Position−taking lifted trading volumes at year's end as institutional investors adjusted their portfolios foraccounting and window−dressing purposes. Retail individuals rebalanced their portfolios to diminish the impactof a 15% capital gain tax on individual investors that took effect on January 1, 1999.break


IFCG Lithuania Index Correlation(36−month period ending 12/98)



Share of Emerging MarketCapitalization*

Exchange Rate(litas per U.S. dollar)


Lithuania 329

(end−1998; total=$1,868 billion)


Lithuania 1998:(Currency in Millions)



National StockExchange

608 611 606 609 609 609 64 64 64 64 63 60


In litas 6,260.0 6,146.0 6,035.0 5,865.0 5,895.0 5,392.0 5,157.0 4,711.0 4,180.8 3,789.8 3,778.0 4,297.2

In US dollars 1,553.3 1,525.1 1,497.5 1,455.3 1,462.8 1,338.0 1,279.7 1,169.0 1,037.4 940.4 937.5 1,074.2

Trading value

In litas 38.0 57.2 175.9 77.4 59.5 51.6 68.5 26.3 111.7 48.3 78.1 97.6

In US dollars 9.4 14.2 43.6 19.2 14.8 12.8 17.0 6.5 27.7 12.0 19.4 24.4

Turnover ratio (%) 1.2 0.9 2.9 1.3 1.0 0.9 1.3 0.5 2.5 1.2 2.1 2.4

Local Index

LITIN−G* 1,673.6 1,655.3 1,787.4 1,725.0 1,644.9 1,581.7 1,476.7 1,327.8 1,184.6 1,080.6 1,092.1 1,088.8

Change in index (%) −1.1 −1.1 8.0 −3.5 −4.6 −3.8 −6.6 −10.1 −10.8 −8.8 1.1 −0.3

IFC Global Index

Number of stocks 29 29 29 29 29 29 29 29 29 29 29 27


57.9 58.8 70.0 68.3 64.6 71.9 69.3 64.0 60.9 58.6 59.7 63.9


59.0 60.7 71.3 62.5 60.9 63.2 59.2 63.3 73.1 75.8 77.8 63.1

P/E ratio 7.2 7.0 7.9 13.0 11.7 11.2 10.2 7.0 5.8 6.0 6.5 5.7

P/BV ratio 0.9 0.9 1.0 1.0 0.9 0.9 0.8 0.6 0.5 0.5 0.5 0.6


Lithuania 1998: (Currency in Millions) 330

Dividend yield (%) 0.9 0.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0



−5.6 −2.9 12.9 0.2 −9.6 −7.9 −8.7 −16.5 −16.3 −3.9 6.8 7.7

Exchange Rates


4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0300 4.0005

Notes: The base date for the LITIN−G Index is Dec. 1995=1,000. The base date for the IFCG Lithuania Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

National Stock ExchangeMr. Rimantas Busila, PresidentUkmerges 412600 VilniusLithuaniaTel: (370−2) 723−871Fax: (370−2) 724−894http://www.nse.ltEmail: [email protected]

IFC Correspondent:VB VILFILMA Securities2600 VilnusLithuaniaTel: (370−2) 390−400Fax: (370−2) 390−499Email: [email protected]

Lithuania 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


National StockExchange

− − − − − 13 351 460 607 60


In litas − − − − − 165.0 630.0 3,603.8 6,824.0 4,297.2

In US dollars − − − − − 4.1 157.4 900.3 1,693.3 1,074.2

Trading Value

In litas − − − − − 27.0 148.4 187.6 959.1 890.0

In US dollars − − − − − 6.8 37.1 46.9 239.4 221.0


Lithuania 1989−1998: (Currency in Millions; End of Period Levels) 331

http://www.nse.lt

Turnover ratio (%) − − − − − − 37.3 8.9 18.4 16.0

Local Index

LITIN−G* − − − − − − 1,000.0 1,327.5 1,862.9 1,088.8

Change in index (%) − − − − − − − 32.8 40.3 −41.6

IFC Global Index

Number of stocks − − − − − − 31 31 29 27


− − − − − − 75.5 27.6 60.5 63.9

P/E ratio − − − − − − − −23.9 8.0 5.7

P/BV ratio − − − − − − − 1.2 1.0 0.6

Dividend yield (%) − − − − − − − 1.2 0.8 0.0



− − − − − − − 86.5 9.8 −39.2

Economic Data


12,510 13,254 14,821 11,353 6,100 5,829 6,887 7,892 9,585 10,517


− − − − − − − − − −


− − − − − − 4.0030 4.0030 4.0300 4.0005


− − − − − − 4.0000 4.0030 4.0060 4.0272

Notes: The base date for the LITIN−G Index is Dec. 1995=1,000. The base date for the IFCG Lithuania Index isDec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Malaysia

Market Performance

In a year marked as much by Malaysia's first economic recession since the mid−1980s as a shift toward capitalcontrols, the IFCI Malaysia Index shed only 2.9% in dollar terms. The creation of a fixed−exchange−rate regimein September and a fourth−quarter rally softened the sharp declines at mid−year.


Malaysia 332

During the first quarter, the ringgit strengthened as the country appeared to have overcome the financial crisischallenging emerging markets. Foreign investors, who fed an early rally on optimism that Malaysia would notneed an emergency aid package from the IMF, powered an impressive 53.5% IFCI jump in February. The tidechanged at the quarter's end, as a slump in the Indonesian rupiah spilled over to Malaysia and mounted pressureagainst the ringgit. Instability in the financial sector caused further downturns. A plan to consolidate the 39finance companies into an "anchor" group of approximately five large companies shook up the financial sector onfears that firms would not be allowed to fail. Large losses at banks triggered anxiety over the health of thebanking industry. Interest rates had risen since July 1997 to stabilize the currency and remained at levels as highas 20% in 1998 to contain inflation, propelled higher by import costs. Concern about the property sector andanxiety that rising interest rates and a weaker ringgit would saddle banks with non−performing loans was acute.

Stocks plummeted in the subsequent two quarters, as turbulence in Asia's currency markets and stark economicreports plagued the market. Malaysian stocks sank to their lowest level in eight years, as the slide in Asiancurrencies, exacerbated by Japan's recession, aroused fears over Malaysian exports. The central bank reported arise in bad loans to 8.9% of total bank loans in the second quarter, up from 7% in the first. The government'sprediction of a 4% to 5% rise in GDP at the year's onset was sharply revised downward to a 1% to 2%contraction. The resignation of central bank head Ahmad Mohammed Don as of September 1 signaled a shift inmonetary policy. Prime Minister Dr Mahathir Mohamad advocated lower interest rates to resurrect the economy.This paved the way for a decrease in interest rates (to about 10%); less stringent reserve requirements; thedeparture and subsequent heated trial of a rival to the prime minister, Finance Minister Anwar Ibrahim; and thesudden announcement of capital controls. The capital controls had an especially chilling effect on the market asthe government opted to institute a 12−month holding period for all existing and future equity investments,effective September 1. Dividends and capital gains, meanwhile, could be repatriated at any time using thefixed−exchange rate of RM3.8 per dollar.

Stocks rebounded during the final quarter, sparked by lower interest rates and rallies throughout the region andstimulated by a doubling of value traded over the third quarter. Year−end figures showed a contraction in GDP of4.8%, the first decrease since 1985, while the trade surplus was approximately $15.4 billion. Foreign investors,who own 23% of market capitalization, were largely absent. Malaysia was removed from the IFCI Composite andAsia indexes on October 1. In February 1999, the 12−month holding period was replaced by a repatriationlevy—a capital gains tax on repatriation—and the IFC announced it would reinstate Malaysia to the IFCIComposite and Asia indexes, barring any significant policy changes, on November 1, 1999.break


Malaysia 333


IFCI Malaysia Index Correlation(5−year period ending 12/98)





Exchange Rate(ringgit per U.S. dollar)

Malaysia 1998:(Currency in Millions)



Kuala Lumpur StockExchange

712 716 722 722 724 728 730 732 734 734 736 736


Malaysia 1998: (Currency in Millions) 334


In ringgit 345,790 461,430 465,040 378,730 327,290 277,680 249,070 193,570 241,570 262,103 348,209 374,517

In U.S. dollars 82,703 125,559 127,758 101,265 85,221 66,951 60,491 46,250 63,571 68,975 91,634 98,557

Trading Value

Inringgit 9,047 26,447 11,532 6,553 5,500 5,396 4,659 3,827 8,304 5,105 11,146 16,596

In U.S. dollars 2,164 7,197 3,168 1,752 1,432 1,301 1,132 914 2,185 1,343 2,933 4,367

Turnover ratio (%) 2.5 6.5 2.5 1.5 1.6 1.8 1.8 1.7 3.8 2.0 3.6 4.6

Local Index

KLSE Composite* 569.5 745.4 719.5 626.0 538.2 455.6 402.6 302.9 373.5 405.3 501.5 586.1

Change in index (%) −4.2 30.9 −3.5 −13.0 −14.0 −15.3 −11.6 −24.8 23.3 8.5 23.7 16.9

IFC Global Index

Number of stocks 157 157 157 157 157 157 157 157 157 157 147 147


71.0 70.6 67.0 71.3 70.1 69.1 68.5 65.2 66.5 65.9 62.5 65.7


69.6 68.3 66.6 78.7 79.9 83.2 81.9 81.7 80.4 74.6 54.1 55.7

P/E ratio 9.1 12.4 11.8 10.7 10.1 10.2 9.7 7.5 11.2 11.4 19.3 21.1

P/BV ratio 1.3 1.8 1.7 1.4 1.2 1.0 0.9 0.7 0.8 0.9 1.2 1.3

Dividend yield (%) 3.8 2.8 2.9 3.3 3.9 4.5 4.9 6.2 4.5 3.9 3.0 2.5



−10.1 53.7 −3.8 −15.6 −17.2 −21.6 −9.4 −26.6 38.8 7.3 28.1 9.8

Exchange Rates


4.1811 3.6750 3.6400 3.7400 3.8405 4.1475 4.1175 4.1853 3.8000 3.8000 3.8000 3.8000

Notes: The base date for the KLSE Composite Index is 1977=100. The base date for the IFCG Malaysia Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Kuala Lumpur Stock ExchangeMr. Mohammed Azlan bin Hashim

IFC Correspondent:Maxis Sdn. Bhd.


Malaysia 1998: (Currency in Millions) 335

Executive Chairman12th Fl., Exchange SquareBukit Kewangan50200 Kuala Lumpur, MalaysiaTel: (60−3) 206−7099Fax: (60−3) 206−3684http://www.klse.com.my/

No. 58 Jalan Medang KapasBukit Bandaraya, Bangsar50490 Kuala LumpurMalaysiaTel: (60−3) 256−2788Fax: (60−3) 256−2788

Malaysia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Kuala Lumpur StockExchange

251 282 321 369 410 478 529 621 708 736


In ringgit 107,513 131,166 159,495 245,820 593,343 508,850 565,510 775,780 364,370 374,517

In U.S. dollars 39,842 48,611 58,627 94,004 220,328 199,276 222,729 307,179 93,608 98,557

Trading Value

In ringgit 18,638 29,391 29,294 55,347 395,554 331,384 192,631 436,523 413,922 114,113

In U.S. dollars 6,888 10,871 10,657 21,730 153,661 126,458 76,822 173,568 147,036 29,889

Turnover ratio (%) 21.8 24.6 20.2 27.3 94.3 60.1 35.9 65.1 72.6 30.9

Local Index

KLSE Composite* 565.3 505.9 556.2 644.0 1,275.3 971.2 995.2 1,238.0 594.4 586.1

Change in index (%) 58.2 −10.0 9.9 15.8 98.0 −23.8 2.5 24.4 −52.0 −1.4

IFC Global Index

Number of stocks 62 70 62 62 66 104 114 148 157 147


68.6 46.9 63.8 51.0 61.5 63.2 64.0 67.0 70.5 65.7

P/E ratio 27.4 23.6 21.3 21.8 43.5 29.0 25.1 27.1 9.5 21.1


Malaysia 1989−1998: (Currency in Millions; End of Period Levels) 336

http://www.klse.com.my/

P/BV ratio 2.6 2.3 2.5 2.5 5.4 3.8 3.3 3.8 1.4 1.3

Dividend yield (%) 2.2 2.2 2.4 2.4 1.0 1.8 1.7 1.2 4.0 2.5


Change in index (%) 44.0 −11.2 12.1 28.0 102.9 −21.5 3.6 24.5 −71.7 1.4

Economic Data


37,872 42,775 47,046 58,309 64,180 72,505 87,337 99,282 98,473 −


2.8 2.6 4.4 4.8 3.5 3.7 5.3 3.5 2.7 −


2.6985 2.6983 2.7205 2.6150 2.6930 2.5535 2.5390 2.5255 3.8925 3.8000


2.7059 2.7037 2.7489 2.5470 2.5742 2.6205 2.5075 2.5150 2.8151 3.9195

Notes: The base date for the KLSE Composite Index is 1977=100. The base date for the IFCG Malaysia Index is Dec.1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Mauritius

Market Performance

It was a banner year in 1998 for the Mauritius Stock Exchange, as both the local and IFCG indexes postedpositive gains. The local Semdex Index finished the year with a gain of almost 20% in rupees, while thedollar−based IFCG Mauritius Index registered a more modest gain of 1.3%.

Shares started the new year on a slow note as very light trading in the wake of the holiday season limited marketmovements. Both January and February equity gains remained moderate, as buyers were cautious ahead of 1997corporate results. By March, profit−taking had become the main culprit for a slide in equity returns.

At the end of April, commerce and hotel stock prices firmed after posting results that showed average or aboveaverage earnings growth. News of merger plans between New Mauritius Hotels and Grand Baie Hotel alsotriggered a market rally in the period's closing sessions. However, the month was not all positive for the exchangeas the global financial market turmoil began to take its toll. Net purchases by foreign buyers slid 54% in the firstquarter, as compared to the previous year, largely on investor concerns surrounding the Asian financial crisis.

The second−quarter highlight was the new fiscal budget. Announced in June, government revisions to the taxsystem were deemed to have little impact on company tax rates, comforting investors. Investors reacted positivelyto the budget, sending the Semdex Index 12.7% higher in June and over the psychological 500−point barrier to anall−time high.


Mauritius 337

Investors continued to respond into July as market players disregarded global news and turned their attention tocompany earnings announcements. Led by Mauritius Commercial Bank and by rumors that the company wouldissue free shares to celebrate the bank's 160th anniversary, the Semdex soared to a record high in the early tradingsessions of the month. However, profit−takers quickly took advantage of the opportunity and drove both the stockprice and local index down for the month. By the end of the third quarter, the global economic turmoil finallyfound its way to Mauritius as the Semdex Index dropped 10.4% in September while the dollar−based IFCG Indexfaired even worse, falling 18.4%. Some of the largest losses were incurred in the banking sector as foreign fundsthat had recently driven up the sector forced share prices lower.

Increased foreign selling because of the global emerging market crisis brought prices down in the last few monthsof the year. Local investors reacted to the relative stability and decreased downside potential by acquiring sharesthat had fallen to attractive levels. Finishing out the year, trading was marked by little direction and a notableabsence of foreign investors.break


IFCG Mauritius Index Correlation(36−month period ending 12/98)



Mauritius 338





Mauritius 1998:(Currency in Millions)



Stock Exchange ofMauritius

40 40 40 40 40 40 40 40 40 40 40 40


In rupees 38,243.6 39,076.3 40,804.0 42,908.3 43,082.5 44,114.9 51,253.0 50,009.1 44,879.6 43,910.5 44,203.2 45,335.8

In US dollars 1,687.0 1,705.6 1,719.0 1,800.5 1,803.3 1,817.6 2,102.9 2,041.2 1,835.6 1,788.6 1,798.5 1,849.1

Trading value

In rupees 117.9 142.1 201.3 286.3 152.9 118.4 379.7 286.2 231.9 289.2 139.2 94.8

In US dollars 5.2 6.2 8.5 12.0 6.4 4.9 15.6 11.7 9.5 11.8 5.7 3.9

Turnover ratio (%) 0.1 0.4 0.5 0.7 0.4 0.3 0.8 0.6 0.5 0.6 0.3 0.2

Local Index


Mauritius 1998: (Currency in Millions) 339

SEMDEX* 405.0 413.8 432.1 454.4 456.2 467.1 526.4 513.6 460.9 451.0 454.0 465.6

Change in index (%)2.2 2.2 4.4 5.2 0.4 2.4 12.7 −2.4 −10.3 −2.2 0.7 2.6

IFC Global Index

Number of stocks 14 14 14 14 14 14 14 14 14 14 14 13


79.1 79.7 80.3 81.9 81.7 80.6 84.2 82.7 78.7 79.2 79.1 79.0


88.0 78.7 74.0 88.0 79.3 77.3 82.6 55.7 76.8 90.3 87.8 88.2

P/E ratio 13.3 13.9 13.8 14.3 14.3 13.8 15.2 14.3 12.1 11.8 11.9 11.6

P/BV ratio 1.4 1.4 1.4 1.5 1.5 1.5 1.7 1.6 1.5 1.4 1.4 1.5

Dividend yield (%) 2.7 2.6 2.6 2.8 2.8 2.6 2.4 2.4 3.0 3.5 3.6 3.5



1.9 2.9 1.7 6.9 0.2 −0.4 15.5 −4.8 −18.2 −1.6 0.3 3.9

Exchange Rates


22.6695 22.9100 23.7370 23.8315 23.8910 24.2710 24.3720 24.5000 24.4500 24.5500 24.5780 24.5180

Notes: The base date for the SEMDEX Index is July 5, 1989=100. The base date for the IFCG Mauritius Index is Dec. 1995=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Stock Exchange of MauritiusMr. Richard Morin, Chief Executive6th Floor − "Les Cascades"33, Bis Edith Cavell StreetPort−LouisMauritiusTel: (230) 212−9541, 212−9542Fax: (230) 208−8409

IFC Correspondent:Newton Securities Ltd.Happy World House, Level 837, Sir William Newton St.Port LouisMauritiusTel: (230) 208−8626, 212−6768Fax: (230) 208−8749

Mauritius 1989−1998:(Currency in Millions; End of Period Levels)


Mauritius 1989−1998: (Currency in Millions; End of Period Levels) 340

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Stock Exchange ofMauritius

− 13 20 22 30 35 28 40 40 40


In rupees − 3,793.0 4,800.0 6,400.0 14,907.3 28,536.0 24,397.0 33,376.7 36,934.9 45,335.8

In US dollars − 267.6 311.7 415.6 791.1 1,514.4 1,330.7 1,676.3 1,665.1 1,849.1

Trading Value

In rupees − 88.7 80.5 160.0 691.6 1,510.0 1,214.0 1,546.9 2,875.4 2,439.8

In US dollars − 6.0 5.1 10.3 38.7 84.5 69.8 78.5 136.9 102.0

Turnover ratio (%) − − 1.9 2.9 6.5 7.0 4.6 5.4 8.2 5.9

Local Index

SEMDEX* − 171.2 154.2 183.2 302.6 473.7 344.4 353.5 391.1 465.6

Change in index (%) − − −9.9 18.8 65.2 56.5 −27.3 2.6 10.6 19.0

IFC Global Index

Number of stocks − − − − − − 13 13 14 13


− − − − − − 80.3 64.4 78.6 79.0

P/E ratio − − − − − − − 11.5 12.8 11.6

P/BV ratio − − − − − − − 1.1 1.3 1.5

Dividend yield (%) − − − − − − − 3.3 2.7 3.5



− − − − − − − −3.5 8.9 4.9

Economic Data


2,182 2,642 2,831 3,189 3,195 3,503 3,967 4,299 4,398 −


Mauritius 1989−1998: (Currency in Millions; End of Period Levels) 341


12.7 13.5 7.0 4.6 10.5 7.3 6.0 6.6 6.8 −


− 14.1724 15.4000 15.4000 18.8430 18.8430 18.3335 19.9110 22.1815 24.5180


− 14.8630 15.6520 15.5630 17.8600 17.8600 17.3860 19.7113 20.9987 23.9216

Notes: The base date for the SEMDEX Index is July 5, 1989=100. The base date for the IFCG Mauritius Index is Dec.1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Mexico

Market Performance

Mexican equities tumbled in 1998 as the international financial contagion that began in Asia in October 1997,coupled with record−low petroleum prices, outweighed strong domestic macroeconomic and corporatefundamentals in the eyes of investors. Heightened emerging market risk and rising inflation placed downwardpressure on the peso in the second half of the year, exacerbating Mexico's poor stock market performance. Theimpact of the 18.5% peso depreciation was felt strongly by the dollar−based IFCI and IFCG Mexico indexes,which fell 38.9% and 38.8%, respectively. The peso−based BVM General Index tumbled 24.8%.

The market recorded mixed results in the first quarter as fiscal belt−tightening reversed the positive impact of5.4% real annualized economic growth on share prices. After a 15.4% plunge in January, Mexican stocks made amodest comeback from February to April, with the IFCI Index gaining 10.1%. Price gains were temperedthroughout the period by government spending cuts that investors feared would reduce demand for goods andservices, and in turn GDP growth. Authorities announced two budget cuts totaling $2.85 billion in the first half of1998 to compensate for record−low petroleum prices.

Positive macroeconomic data did little to calm rattled investors in the second quarter. Deteriorating internationalsentiment caused investors to wreak havoc on company share prices from May to August. The IFCI Indexplummeted 46.9% from its April level as the Asian contagion made its way westward. The aggressive sellingculminated with the Russian ruble devaluation and debt moratorium, speculative attacks on the Brazilian real, andoil prices at 20−year lows. Balance−of−payments tremors stemming from Russia and the continued weakness ofthe Japanese yen forced the 28−day Cetes rate to climb from 18.2% in April to 27.2% in August as the pesotumbled 14.9%. Positive government announcements of rising year−on−year industrial production and increasedconsumer demand were not enough to stem August's local market hemorrhage of 33.6% in dollars. The peso slideforced the central bank to hike interest rates to a punishing 32.5% by the end of August.


Mexico 342

The bolsa performed relatively better than other major Latin markets in the last quarter, even as Moody'sdowngrade of Brazilian debt pressured Mexican money and foreign exchange markets. The IFCI Index recouped23.4% from its August low, despite a sharp rise in interest rates. The overnight rate on T−bills climbed as high as47.9% while the yield on the 28−day Cetes rate averaged 34.5%, helping to prevent a large devaluation of thepeso in September. In spite of the credit crunch, the stock market was buoyed by Washington's increasingly publicdesire to prevent the spread of the financial contagion to Brazil.

The market earned a slight reprieve in the final months of 1998 as investors shifted attention away from thepotential devaluation of the Brazilian real and toward U.S. and Mexican corporate news. Steady U.S. GDP growthand a quarter−point U.S. interest rate cut as well as strong earnings growth among Mexican firms lifted the IFCIIndex 10.0% in dollars in October. Good news also eased the 28−day T−bill rate, which fell to 33.42%. Marketresults were mixed in the last two months of the year as the government and opposition continued to fight overhow to pay for the $60 billion worth of non−performing loans held by Mexican banks that were left over from the1994 Mexican peso crisis.break


IFCI Mexico Index Correlation(5−year period ending 12/98)



Mexico 343





Mexico 1998:(Currency in Millions)



Bolsa Mexicana deValores

198 198 198 198 199 199 200 200 198 197 195 194


In pesos 1,123,5141,154,9731,202,5401,219,8391,123,5241,066,4311,040,434807,526 889,935 940,028 877,825 907,366

In U.S. dollars 132,803 135,505 141,176 143,688 127,441 118,677 116,621 81,000 87,334 92,861 87,699 91,746

Trading Value

In pesos 27,600 25,275 32,579 25,356 53,701 21,925 25,686 18,693 23,424 22,981 16,638 15,904

In U.S. dollars 3,262 2,965 3,825 2,987 6,091 2,440 2,879 1,875 2,299 2,270 1,662 1,608

Turnover ratio(%)

2.3 2.2 2.8 2.1 4.6 2.0 2.4 2.0 2.8 2.5 1.8 1.8

Local Index

BMV General* 4,569.4 4,784.5 5,016.2 5,098.5 4,530.0 4,282.6 4,245.0 2,991.9 3,569.9 4,074.9 3,769.9 3,959.7


Mexico 1998: (Currency in Millions) 344

Change inindex (%)

−12.6 4.7 4.8 1.6 −11.1 −5.5 −0.9 −29.5 19.3 14.1 −7.5 5.0

IFC Global Index

Number of stocks 74 74 74 74 74 74 74 74 74 74 71 70

Share of marketcap. (%)*

71.6 71.9 72.7 72.7 70.3 70.2 70.3 66.7 69.4 71.5 75.6 73.6


90.2 90.5 83.6 89.4 35.5 91.7 92.0 92.1 93.1 90.0 92.1 92.1

P/E ratio 17.1 13.9 14.1 14.3 13.6 13.2 12.7 12.9 14.5 16.1 23.3 23.9

P/BV ratio 2.0 2.0 2.1 2.1 1.8 1.7 1.6 1.2 1.4 1.5 1.4 1.4

Dividend yield(%)

1.7 1.7 1.6 1.7 2.2 2.3 2.1 2.7 2.4 2.2 2.2 2.7

Total returnindex*

2,581.5 2,639.0 2,794.7 2,860.0 2,488.4 2,330.4 2,295.0 1,523.8 1,723.2 1,889.0 1,815.1 1,909.9


−15.2 2.2 5.9 2.3 −13.0 −6.3 −1.5 −33.6 13.1 9.6 −3.9 5.2

Exchange Rates


8.4600 8.5235 8.5180 8.4895 8.8160 8.9860 8.9215 9.9695 10.1900 10.1230 10.0095 9.8900

Notes:The base date for the BMV General Index is Oct. 1978=0.7816. The base date for the IFCG Mexico Index is Dec. 1984=100. In calculating share of total market cap, IFCG market cap is not

adjusted for cross holdings.

Mexican Stock ExchangeMr. Manuel Robleda Gonzales de Castilla, Chairman of the Board

Gerardo Flores, General DirectorPaseo de la Reforma No. 255Col. Cuauhtemoc06500 Mexico, D.F., MexicoTel: (52−5) 726−66−00Fax: (52−5) 726−68−05http://www.bmv.com.mx

IFC Correspondent:Casa de Bolsa Bancomer SA de CV

Insurgentes Sur 1811−40 pisoCol. Guadalupe Inn01020 Mexico D.F., MexicoTel: (52−5) 621−9889Fax: (52−5) 621−9891http://www.bancomer.com.mx

Mexico 1989−1998:(Currency in Millions; End of Period Levels)


Mexico 1989−1998: (Currency in Millions; End of Period Levels) 345

http://www.bmv.com.mx

http://www.bancomer.com.mx

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bolsa Mexicana deValores

203 199 209 195 190 206 185 193 198 194


In pesos 60,514 96,472 303,271 433,313 623,887 641,461 698,797 838,682 1,262,469907,366

In U.S. dollars 22,550 32,725 98,178 139,061 200,671 130,246 90,694 106,540 156,595 91,746

Trading Value

In pesos 15,421 34,575 95,725 137,902 194,421 281,554 221,024 327,028 416,846 309,763

In U.S. dollars 6,232 12,212 31,723 44,582 62,454 82,964 34,377 43,040 52,646 33,841

Turnover ratio (%) 33.3 44.0 47.9 37.4 36.8 44.5 33.0 42.5 39.7 28.6

Local Index

BMV General* 418.9 628.8 1,431.5 1,759.4 2,602.6 2,375.7 2,778.5 3,361.0 5,229.3 3,959.7

Change in index (%) 98.0 50.1 127.6 21.8 47.9 −8.7 17.0 21.0 55.6 −24.3

IFC Global Index

Number of stocks 52 61 69 62 69 80 80 76 75 70


65.5 62.5 51.6 47.5 62.0 63.9 67.1 69.7 72.1 73.6

P/E ratio 8.4 10.3 14.1 12.3 19.4 17.1 28.4 16.8 19.2 23.9

P/BV ratio 0.9 1.0 1.8 2.0 2.6 2.2 1.7 1.7 2.3 1.4

Dividend yield (%) 2.1 3.4 0.8 1.0 1.6 1.8 1.1 1.5 1.5 2.7

Total return index* 802.7 1,041.0 2,152.4 2,608.2 3,909.8 2,320.9 1,717.9 2,024.2 3,045.4 1,909.9

Change in index (%) 73.3 29.7 106.8 21.2 49.9 −40.6 −26.0 17.8 50.4 −37.3

Economic Data


223,113 262,953 314,287 364,183 402,627 420,166 286,140 329,449 402,963 393,218


Mexico 1989−1998: (Currency in Millions; End of Period Levels) 346


20.0 26.7 22.7 15.5 9.8 7.0 35.0 34.4 20.6 −


2.6835 2.9480 3.0890 3.1160 3.1090 4.9250 7.7050 7.8720 8.0620 9.8900


2.4745 2.8311 3.0175 3.0932 3.1130 3.3937 6.4295 7.5982 7.9179 9.1535

Notes: The base date for the BMV General Index is Oct. 1978=0.7816. The base date for the IFCG Mexico Index is Dec.1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Morocco

Market Performance

Equities at the Casablanca Stock Exchange (CSE) ushered in an impressive rally during 1998, marked by the28.7% gain in the dollar−based IFCI Morocco Index. The Moroccan market advanced consistently during the firstnine months, in response to positive domestic political and economic developments. The market retreated duringthe last quarter on selling by institutions seeking to raise cash for upcoming IPOs.

The year began on a sluggish note, as Ramadan and 'Eid el Fitur diminished interest in stocks, causing prices tomove within narrow bands. Trading picked up during February on optimistic economic forecasts and positiveexpectations about 1997 earnings reports. The CSE released fresh details on its modernization program, aiming toattract foreign investors by cutting commissions on stock trading and improving liquidity and transparency. Theappointment of a market−oriented prime minister, Abderrahmane Youssoufi. also helped to generate a rally inblue chips, led by banking shares. March saw additional gains, following the appointment of a new government,the release of robust 1997 earnings reports, and news that Moody's and S&P had assigned Morocco its first−everforeign debt rating (Ba1 and BB, respectively).

Moroccan equities marched higher during April, on political stability and continued optimism over the country's1998 economic outlook, supported by positive first−quarter earnings reports. The rally lasted through May, fueledby a cut in loan rates by several prominent banks, a government pledge to reform the insurance sector, and acommitment by the CSE to introduce new stocks to its electronic trading system. June was fairly quiet due to alack of market−moving news, and the exchange stepped up efforts to migrate stocks onto the new electronictrading platform.

In the third quarter, the market benefited from several IPOs that were oversubscribed between 8% and 106%. The


Morocco 347

government has stressed its commitment to increasing CSE listings, and the terrific response to the IPOs was usedas evidence of a successful roadshow. Several new listings and an increase in mutual fund activity lifted buying inAugust. Significantly, Morocco was one of only three IFCI indexes to post gains during the month of August,when the Russian crisis and weakened yen forced most emerging markets lower. Since foreign investor activity inMorocco remains minimal, the country was largely insulated from the global equity sell−off.

Owing to a stellar stock performance in August, when the IFCI jumped 9.0%, the country formed a campaign topromote Morocco as an independent market and safe−haven from the worldwide emerging market crisis. After aneight−month string of monthly gains, the market shifted in October, falling initially on a technical correction andlater on sales by institutional investors accumulating cash for IPOs. Shares continued their retreat in November asinvestors dumped holdings to consolidate gains. The year ended on a pessimistic note as 1999 earningsprojections were reassessed and analysts feared that several market leaders were overvalued. Concerns over thegovernment's delay in privatization of key industries raised fears of a slowdown in the economy. However, asecond reduction in the commission paid for equity transactions temporarily boosted activity. While Ramadanreduced market liquidity in the closing sessions of December, institutional block transactions played an importantrole, accounting for almost 50% of turnover.break


IFCI Morocco Index Correlation(22−month period ending 12/98)



Share of Emerging MarketCapitalization*

Exchange Rate(dirhams per U.S. dollar)


Morocco 348

(end−1998; total=$1,868 billion)


Morocco 1998:(Currency in Millions)



Bourse des Valeursde Casablanca

49 49 48 48 48 48 51 51 51 52 53 53


In dirhams 119,900 124,981 129,269 140,364 148,212 147,052 149,295 159,332 154,819 149,354 146,798 145,147

In U.S. dollars 12,158 12,738 13,041 14,431 15,265 15,065 15,412 16,579 16,739 16,207 15,678 15,676

Trading Value

In dirhams 410 707 914 906 1,042 1,904 1,627 964 1,300 1,018 1,223 1,283

In U.S. dollars 42 72 92 93 107 195 168 100 141 110 131 139

Turnover ratio (%) 0.3 0.6 0.7 0.7 0.7 1.3 1.1 0.6 0.8 0.7 0.8 0.9

Local Index

Upline Securities* 89,538 94,369 98,838 111,066 118,141 116,933 115,796 125,711 121,836 117,123 112,185 110,263

Change in index(%)

1.1 5.4 4.7 12.4 6.4 −1.0 −1.0 8.6 −3.1 −3.9 −4.2 −1.7

IFC Global Index

Number of stocks 17 17 17 17 17 17 17 17 17 17 18 18


75.0 75.0 75.5 75.5 74.9 75.7 74.2 74.3 74.0 73.9 73.6 73.1


85.0 75.4 84.7 82.2 76.7 92.3 35.0 81.7 76.7 71.4 69.6 81.6

P/E ratio 21.6 22.6 23.7 20.9 21.9 22.0 22.0 23.6 22.9 22.2 21.6 21.2


Morocco 1998: (Currency in Millions) 349

P/BV ratio 3.5 3.6 3.8 3.5 3.7 3.7 3.7 4.0 3.9 3.8 3.7 3.6

Dividend yield (%) 1.5 1.4 1.3 1.2 1.2 1.4 1.9 1.8 1.7 1.8 1.8 1.8



−0.5 5.2 3.8 10.0 4.9 0.3 1.8 8.4 0.9 −2.8 −4.3 −0.6

Exchange Rates


9.8620 9.8118 9.9126 9.7263 9.7090 9.7613 9.6870 9.6103 9.2488 9.2157 9.3630 9.2591

Notes: The base date for the Upline Securities Index is Dec. 31, 1989=1,000. The base date for the IFCG Morocco Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings. Market−level data does not include OTC figures.

Casablanca Stock ExchangeMr. Zouheir Bensaïd, ChairmanMrs. Fethia Bennis, General DirectorMr. Driss Bencheikh, General SecretaryAngle avenue des Far & Mohamed ErrachidCasablancaMoroccoTel: (212) 245−2626Fax: (212) 245−2625

IFC Correspondent:Upline Securities41−43, Angle Bd d'Anfa & rue de NievreCasablanca 20000MoroccoTel: (212) 247−5124, (212) 247−5221Fax: (212) 247−4603, (212)24 7 4614http://upline.co.maEmail: [email protected]

Morocco 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bourse des Valeurs deCasablanca

71 71 67 62 65 51 44 47 49 53


In dirhams 5,043 7,768 12,449 16,975 25,689 39,825 50,401 76,212 118,621 145,147


Morocco 1989−1998: (Currency in Millions; End of Period Levels) 350

http://upline.co.ma

In U.S. dollars 621 966 1,528 1,909 2,651 4,376 5,951 8,705 12,177 15,676

Trading Value

In dirhams 133 512 428 601 4,633 7,240 20,716 3,758 9,978 13,298

In U.S. dollars 16 62 49 70 498 788 2,426 432 1,048 1,385

Turnover ratio (%) 3.1 8.0 4.2 4.1 21.7 22.1 45.9 5.9 10.2 10.1

Local Index

Upline Securities* 122.6 158.6 187.5 201.8 259.8 342.3 // 41,929.0

56,034.0 88,595.0 110,263.0

Change in index (%) −26.6 29.3 18.3 7.6 28.8 31.8 − 33.6 58.1 24.5

IFC Global Index

Number of stocks − − − − − − 11 13 17 18


− − − − − − − 67.0 75.4 73.1

P/E ratio − − − − − − − 13.8 18.3 21.2

P/BV ratio − − − − − − − 2.5 3.5 3.6

Dividend yield (%) − − − − − − − 2.1 1.5 1.8


Change in index (%) − − − − − − − 42.0 40.4 29.8

Economic Data


22,847 25,825 27,836 28,451 26,801 30,351 32,986 36,673 33,514 −


3.1 6.9 8.0 5.7 5.2 5.1 6.1 3.0 0.9 −


8.1218 8.0438 8.1499 8.8900 9.6900 9.1000 8.4690 8.7551 9.7415 9.2591


8.4882 8.2420 8.7065 8.5380 9.2990 9.1881 8.5400 8.6905 9.5167 9.5989

Notes: IFC began using the Upline Securities Index in 1996. The base date for the index is Dec. 31, 1989=1,000. The basedate for the IFCG Morocco Index is Dec. 1995=100. In calculating share of total market cap, IFCG market cap is notadjusted for cross holdings. Market−level data does not include OTC figures.


Morocco 1989−1998: (Currency in Millions; End of Period Levels) 351

Nigeria

Market Performance

For Nigerian equities, 1998 proved to be a less−than−stellar year as political, social, and economic distress allplayed a hand in driving equity returns down on the Nigerian Stock Exchange. During 1998, the IFCG NigeriaIndex fell more than 25% in dollar terms, while the local NSE All−Share Index dropped 11.8% in naira.

Shares on the exchange moved mostly lower in the first quarter as the government's 1998 budget, presented earlyin January by military ruler Gen. Sani Abacha, did little to bolster sentiment. Despite Finance Minister AnthonyAni's statements that foreign investors could take the government's relaunched privatization program seriouslyand that the government would not interfere with privatized companies, investors continued to off−load shares onfears of the anticipated turnover of the government from military to civilian rule later in the year.

Politics took center stage again in April, as election news put a stranglehold on the stock market. The resurgenceof political worries was triggered by news that all five registered political parties had nominated Abacha as theirconsensus candidate for the August presidential elections. Because no registered party put forth an oppositioncandidate, the presidential elections were to consist of a simple "yes" or "no" ballot for Abacha. In protest, thecountry's main opposition party asked Nigerians to boycott all elections in the country's transition program. Theresulting tension drove the All−Share Index to a 20−month low on political worries and worsening economicconditions.

The death of Abacha stole the headlines during June but had little immediate impact on the Nigerian StockExchange. The market held steady for the month following the news as uncertainty defined the early sessions. Theruler's sudden death left investors indifferent, as declining prices in the market seemed to be more reflective of apersisting recession and the continuing erosion of investor confidence.

Shares moved lower in the third quarter amid continuing concerns over the political situation in Nigeria. Thedeath of detained Nigerian politician Moshod Abiola led to a halt in trading in early July, as the sudden newssparked riots in the commercial capital of Lagos, preventing trading on the local exchange. When the exchangereopened, Nigerian equity prices began spiraling downward as investors waited for a military decision on how thecountry's political and economic problems would be resolved. New leader Gen. Abdulsalam Abubakar pledged toyield power to a civilian government through fair elections in 1999 and pay $630 million in oil arrears, but it didlittle to help soothe the nerves of investors, already jittery over the economic and political turmoil witnessed inJune and July.

In the final quarter, prices fell as Nigerian and foreign investors remained skeptical over the future prospects ofthe Nigerian capital markets, despite greater optimism on the political and economic fronts.break


Nigeria 352


IFCG Nigeria Index Correlation(5−year period ending 12/98)





Exchange Rate(naira per U.S. dollar)

Nigeria 1998:(Currency in Millions)



Nigerian StockExchange

180 180 180 180 180 180 182 183 184 184 186 186


Nigeria 1998: (Currency in Millions) 353


In naira 278,561 278,152 272,626 264,635 261,173 255,034 252,322 255,088 251,884 251,678 256,374 256,937

In U.S. dollars 3,419 3,277 3,174 3,077 2,839 2,950 2,928 2,842 2,915 2,920 2,983 2,887

Trading Value

In naira 608.0 1,062.0 931.0 949.0 745.0 1,630.0 2,218.0 581.0 680.0 658.0 2,946.0 852.0

In U.S. dollars 7.0 13.0 11.0 11.0 8.0 19.0 26.0 6.0 8.0 8.0 34.0 10.0

Turnover ratio (%) 0.2 0.4 0.3 0.3 0.3 0.6 0.9 0.2 0.3 0.3 1.2 0.3

Local Index

NSE All Share* 6,435.6 6,426.2 6,298.5 6,113.9 6,033.9 5,892.1 5,817.0 5,795.7 5,697.7 5,671.0 5,688.2 5,672.8

Change in index (%) −0.1 −0.1 −2.0 −2.9 −1.3 −2.3 −1.3 −0.4 −1.7 −0.5 0.3 −0.3

IFC Global Index

Number of stocks 31 31 31 31 31 31 31 31 31 31 28 28


72.9 73.0 73.1 72.5 71.7 71.7 72.1 70.6 70.0 69.5 68.6 68.5


82.2 83.3 63.7 71.9 83.5 75.7 94.0 75.9 68.7 51.5 94.8 79.2

P/E ratio 8.1 8.1 7.9 8.4 8.2 8.0 7.9 9.5 9.3 9.3 9.3 10.1

P/BV ratio 2.3 2.3 2.3 2.0 2.0 1.9 1.9 1.7 1.7 1.7 1.7 1.7

Dividend yield (%) 5.8 5.9 6.3 5.5 3.8 4.9 5.6 5.2 5.2 5.1 5.1 5.1



−8.4 −3.8 −2.9 −3.8 −8.3 5.5 0.5 −4.9 1.7 0.0 1.4 −4.5

Exchange Rates


81.4750 84.8800 85.9000 86.0000 92.0000 86.4400 86.1800 89.7600 86.4000 86.2000 85.9500 89.0000

Notes: The base date for the NSE All Share Index is Jan. 3, 1984=100. The base date for the IFCG Nigeria Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.


Nigeria 1998: (Currency in Millions) 354

Nigerian Stock ExchangeMr. Hayford Alile, Director−GeneralStock Exchange House, 8−9 Fls.2−4 Customs StreetP.O. Box 2457Lagos, NigeriaTel: (234−1) 266−0287, 266−0305Fax: (234−1) 266−8724, 266−8281

IFC Correspondent:Securities Transactions & TrustCompany Ltd.Foreshore Towers, 8th Floor2A Osborne Rd, Falomo, IkoyiLagosNigeriaTel: (234−1) 269−4005, 269−0861Fax: (234−1) 269−4392

Nigeria 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Nigerian StockExchange

111 131 142 153 174 177 181 183 182 186


In naira 7,489 11,935 18,448 26,246 41,168 59,635 175,065 279,097 276,112 256,937

In U.S. dollars 1,005 1,372 1,882 1,221 1,029 2,711 2,033 3,560 3,646 2,887

Trading Value

In naira 28.0 88.0 91.0 235.0 287.0 403.0 988.0 5,879.0 10,814.0 13,860.0

In U.S. dollars 4.0 11.0 9.0 14.0 10.0 18.0 14.0 72.0 132.0 161.0

Turnover ratio (%) 0.4 0.9 0.6 1.0 0.9 0.8 0.8 2.6 3.9 5.2

Local Index

NSE All Share* 325.3 513.8 784.0 1,107.6 1,543.8 2,205.0 5,092.1 6,992.1 6,440.5 5,672.8

Change in index (%) 39.3 57.9 52.6 41.3 39.4 42.8 130.9 37.3 −7.9 −11.9

IFC Global Index

Number of stocks 15 24 24 24 24 28 35 35 31 28

55.9 71.7 69.0 65.3 65.3 72.5 75.6 72.2 74.0 68.5


Nigeria 1989−1998: (Currency in Millions; End of Period Levels) 355


P/E ratio 6.5 6.0 10.6 9.0 8.4 6.0 12.5 10.1 8.1 10.1

P/BV ratio 1.4 1.3 1.6 1.7 1.8 1.6 3.6 2.7 2.3 1.7

Dividend yield (%) 7.3 12.0 6.8 5.1 6.9 8.4 5.6 4.1 5.7 5.1


Change in index (%) 21.1 40.5 37.9 −34.9 −11.5 190.9 −20.9 63.1 1.4 −25.1

Economic Data


23,844 28,472 27,313 32,710 21,353 23,663 28,109 35,299 39,856 −


50.5 7.4 13.0 44.6 57.2 57.0 72.8 29.3 8.5 −


7.4500 8.7000 9.8000 21.5000 40.0000 22.0000 86.1000 78.4000 75.7200 89.0000


7.1959 7.9425 9.9295 17.2747 28.2335 21.9956 70.3317 82.2229 81.8551 85.9248

Notes: The base date for the NSE All Share Index is Jan. 3, 1984=100. The base date for the IFCG Nigeria Index is Dec.1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Pakistan

Market Performance

Political infighting and the detonation of nuclear devices midway through the year threw Pakistani equities into atailspin for 1998. After avoiding major damage from the 1997 emerging market selloff, equities on the KarachiStock Exchange (KSE) suffered alongside other emerging markets in 1998 as a result of the Asian crisis. Thedollar−based IFCI Pakistan Index shed 61.9%, while the local KSE−100 Index fell 46.1% in rupee terms. Capitalflight resulting from the nuclear testing and the economic sanctions that followed reduced the rupee's value 10.2%against the dollar.

Already depressed share prices began 1998 on a negative note from a deteriorating social situation anddowngrades by credit−rating agencies S&P and Moody's. Violent clashes in Karachi between two opposingfactions of the Muttahida Qaumi Movement (MQM) drove investors out of the market. The clashes were sparkedwhen the MQM contested the results of 1997 parliamentary elections in which 57 seats were filled the MQM. TheMQM reignited the political uncertainty later in the quarter by threatening to break from the coalition governmentunless some of its demands were met. These included the postponement of local elections in areas held closely bythe MQM amid allegations of possible vote rigging. The IFCI Index registered a 14.5% decline in the first quarter.

The market's real damage came the following quarter in the aftermath of nuclear detonations conducted byPakistan in response to detonations ordered by the Indian government. Frenzied selling hit the market in May,sending the IFCI Index down 37.4%. The quarter ended on a depressed note as the KSE−100 Index fell below its


Pakistan 356

base level of 1,000 for the first time in its eight−year history. For the quarter, the dollar−based IFCI Index fell53.8%, while the rupee−based KSE−100 Index shed 43.4%. The rupee's gradual slide was evident already at thispoint, having dropped 4.2% by the end of June.

Despite the ripple effects of the Russia crisis, share prices took a surprising turn upward in the third quarter,thanks to the creation of the Pakistan Fund by the Islamic Development Bank and other Gulf member states. Theconsortium agreed to raise $1.5 billion with the founding mission to provide the necessary funds needed to pay forits foreign debt. This alleviated the dire need for foreign funds from the World Bank and IMF. Also impacting themarket positively was a 20% reduction in the tariffs charged by the independent power providers (IPP), thusreducing tension between the government and the IPPs. Toward the end of the quarter the government indicatedits willingness to sign the Comprehensive Test Ban Treaty after some of its demands, including the lifting ofeconomic sanctions, were met. Despite an 8% depreciation in the rupee, the IFCI Index rose by 11.8% during thequarter.

Share prices ended the year on a negative note despite the partial lifting of economic sanctions by the UnitedStates, which immediately translated to a 35.3% gain in the IFCI Index in November. Profit−taking and confusionsurrounding the test ban concessions agreed upon by Prime Minister Nawaz Sharif in the United States ledinvestors to lighten holdings. Stocks on the Karachi Stock Exchange ended the fourth quarter with a 13.7% loss inthe IFCI Index, while the KSE−100 Index shed 15%.break


IFCI Pakistan Index Correlation(5−year period ending 12/98)



Pakistan 357





Pakistan 1998:(Currency in Millions)



Karachi StockExchange

781 782 778 778 778 779 779 778 776 775 774 773


In rupee 448,098 461,622 430,640 427,255 300,366 259,348 268,289 279,573 313,577 248,271 298,363 265,624

In U.S. dollars 10,183 10,490 9,753 9,695 6,754 5,625 5,437 5,591 6,255 4,878 5,968 5,418

Trading Value

In rupee 24,838 43,965 31,656 26,730 39,262 22,524 35,355 40,836 41,676 38,719 38,624 43,259

In U.S. dollars 564 999 717 607 883 489 716 817 831 761 773 882

Turnover ratio (%) 5.3 9.7 7.1 6.2 10.8 8.0 13.4 14.9 14.0 13.8 14.1 15.3

Local Index


Pakistan 1998: (Currency in Millions) 358

KSE 100* 1,609.2 1,650.3 1,553.1 1,562.2 1,040.2 879.6 920.5 970.8 1,111.5 841.7 1,051.0 945.2

Change in index (%) −8.3 2.5 −5.9 0.6 −33.4 −15.4 4.6 5.5 14.5 −24.3 24.9 −10.1

IFC Global Index

Number of stocks 55 55 55 55 55 55 55 55 55 55 53 53


78.3 78.3 76.9 77.8 70.0 64.9 67.2 69.6 72.2 66.3 71.7 68.4


98.7 99.0 98.2 98.2 93.7 97.6 99.0 99.7 99.4 98.4 99.0 99.0

P/E ratio 14.4 14.2 17.6 17.7 14.4 10.2 10.8 10.9 12.1 8.5 11.1 7.6

P/BV ratio 2.1 2.1 2.0 1.9 1.2 0.9 0.9 1.0 1.1 0.8 1.1 0.9

Dividend yield (%) 3.2 3.3 7.0 7.1 11.0 14.3 14.1 13.6 11.9 14.9 12.0 13.0



−7.0 0.7 −4.3 −0.6 −35.1 −25.2 −3.7 2.1 13.8 −26.5 34.4 −7.7

Exchange Rates


44.0060 44.0060 44.1525 44.0700 44.4750 46.1050 49.3450 50.0075 50.1325 50.8950 49.9950 49.0230

Notes: The base date for the KSE−100 Index is Nov. 1, 1991=1,000. The base date for the IFCG Pakistan Index is Dec. 1984=100. IFCswitched to the KSE 100 Index from the SBP Index with data from January 1992 forward. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings.

Karachi Stock ExchangeMr. Mohammed YasinLakhani, PresidentMr. Mohammed YacoobMemon, General ManagerStock Exchange RoadKarachi, Sindh 74000PakistanTel: (92−21) 242−5502,242−5503Fax: (92−21) 241−0825http://www.kse.com.pk

Islamabad Stock ExchangeMr. Farooq Zafar, ChairmanMr. Ch. Muhammad RazhidRandhawa, V. Chairman101−E, Fazal−Ul−Haq RoadBlue AreaIslamabadPakistanTel: (92−51) 215−047, 215−050Fax: (92−510) 215−051

Lahore Stock ExchangeMr. Mirza Sher Dill, ChairmanMr. Jamil Ahmad, Chief ExecutiveOfficer19 Khayaban−e−Aiwan−e−IgbalLahore, Punjab 54000PakistanTel: (92−42) 636−8000Fax: (92−42) 636−8484

IFC Correspondent:Jahangir Siddiqui Ltd.Chapal Plaza, 14th Fl.Hasrat Mohani RoadKarachi, 74000PakistanTel: (92−21) 243−1181,243−1188Fax: (92−21) 243−1178

Pakistan 1989−1998:(Currency in Millions; End of Period Levels)


Pakistan 1989−1998: (Currency in Millions; End of Period Levels) 359

http://www.kse.com.pk

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Karachi StockExchange

440 487 542 628 653 724 764 782 781 773


In rupee 52,207 61,900 180,222 204,723 347,829 377,333 327,781 471,666 524,148 265,624

In U.S. dollars 2,457 2,850 7,326 8,028 11,602 12,263 9,286 10,639 10,966 5,418

Trading Value

In rupee 3,910 4,979 15,232 24,435 51,579 97,472 101,446 219,114 463,101 427,444

In U.S. dollars 193 231 620 980 1,844 3,198 3,210 6,054 11,476 9,102

Turnover ratio (%) 8.0 8.7 12.6 12.7 18.7 26.9 28.8 54.8 93.0 108.2

Local Index

KSE 100* 277.3 308.5 718.2 1,243.7 2,164.3 2,049.1 1,497.8 1,339.9 1,753.8 945.2

Change in index (%) 5.5 11.3 132.8 − 74.0 −5.3 −26.9 −10.5 30.9 −46.1

IFC Global Index

Number of stocks 50 62 58 58 64 71 80 64 55 53


31.0 33.4 53.6 47.0 68.5 62.5 69.8 47.2 79.7 68.4

P/E ratio 8.0 7.0 23.9 21.9 27.6 23.3 15.0 11.7 14.8 7.6

P/BV ratio 1.3 1.3 3.1 2.5 4.2 3.5 2.2 1.5 2.3 0.9

Dividend yield (%) 8.3 5.6 1.9 2.5 1.5 1.6 2.4 3.2 3.2 13.0


Change in index (%) 6.4 11.1 172.1 −18.4 56.2 −8.5 −31.1 −19.5 26.1 −55.9

Economic Data


40,171 40,010 45,625 48,884 51,810 52,294 61,200 64,677 61,667 649


Pakistan 1989−1998: (Currency in Millions; End of Period Levels) 360


7.8 9.1 11.8 9.5 10.0 12.4 12.3 10.4 11.4 −


21.2500 21.7200 24.6000 25.5000 29.9800 30.7692 34.2158 40.0799 44.0060 49.0230


20.2685 21.5232 24.5750 24.9436 27.9756 30.4758 31.6059 36.0416 41.0717 46.9637

Notes: The base date for the KSE−100 Index is Nov. 1, 1991=1,000. The base date for the IFCG Pakistan Index is Dec.1984=100. IFC switched to the KSE 100 Index from the SBP Index with data from January 1992 forward. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Peru

Market Performance

Instability in emerging markets, infrastructure damage inflicted by the El Niño weather phenomenon, and lowcommodity prices combined to punish Peruvian equities in 1998 as the dollar−based IFCI and IFCG Peru indexesfell 39.3% and 39.7%, respectively. Weak demand for metals, fishmeal, and pulp from Asia adversely impactedthe country's current account balance through the course of the year, pressuring leading shares lower. Despite alate−year rally following U.S. interest rate cuts and approval of an IMF−led package for Brazil, stocks wereunable to overcome losses, closing down for the year. The downturn in the market marked a pronounced shift inequity trading because the Lima bourse had enjoyed double−digit gains in four of the last five years. GNP grew amodest 0.8% compared to 7.2% in 1997, while inflation dropped from 6.5% to 6.0% year−on−year.

Shares posted losses in the first quarter as low metals prices, lower fishing output stemming from El Niño, andAsian market instability depressed trading on the bolsa. Mining and agricultural exports account for over half thecountry's exports. Despite a flurry of trading activity in Peruvian ADRs, a decline in consumer spending andshort−term profit−taking depressed market sentiment, as the IFCI Index closed down 5.1% for the quarter.

News of a decline in domestic economic growth, destruction of the country's infrastructure wrought by El Niñofloods, and continued weak prices for gold and silver cast a shadow over the market in the second quarter, as theIFCI Index declined 6.0%. Leading the fall were telecommunication, mining, and bank stocks as concern overemerging market stability in Indonesia and Russia sidelined foreign investors while local pension funds steeredclear of the domestic equity market.

The fallout from the August Russian ruble devaluation sparked panic in emerging market trading in the third


Peru 361

quarter, as nervous investors sold their Peruvian equity positions. Anxiety that other Latin American countrieswould follow suit pushed the local index to its lowest level in four years, while the IFCI index collapsed 31%.Telefonica del Peru and Cementos Lima, stocks that characteristically account for half the trading on the LimaStock Exchange, led the market nosedive. Bank shares also fell sharply on news of deteriorating loan portfoliosand a reduction in new loans stemming from the country's poor quarterly economic performance.

A historic peace agreement ending a 56−year border dispute between Peru and Ecuador, and a $41.5 billion aidpackage for Brazil, proved insufficient to boost market sentiment in the fourth quarter, as the IFCI Index drifted1.4% lower. Despite a double−digit rally in November, continuing jitters stemming from the August worldwiderout in emerging markets held the market at bay. Cement and steel industry shares fell in tandem as a domesticcredit crunch sapped demand for construction while the central bank intervened for the first time in four years tosupport the currency. The stock market closed on a negative note amid questions on whether President AlbertoFujimori would seek a third term in office.break


IFCI Peru Index Correlation(5−year period ending 12/98)





Exchange Rate(soles per U.S. dollar)


Peru 362

Peru 1998:(Currency in Millions)



Bolsa de Valores deLima

249 247 247 248 254 260 260 261 260 259 257 257


In nuevos soles 48,141 43,576 45,954 47,344 46,232 44,018 44,873 36,660 35,485 34,350 40,754 36,751

In U.S. dollars 17,370 15,485 16,363 16,771 16,155 14,975 15,323 12,163 11,621 11,196 13,048 11,645

Trading Value

In nuevos soles 975 557 604 681 843 733 614 712 817 500 540 550

In U.S. dollars 352 198 215 241 295 249 210 236 268 163 173 174

Turnover ratio (%) 2.0 1.2 1.3 1.5 1.8 1.6 1.4 1.8 2.3 1.4 1.4 1.4

Local Index

IGBVL* 1,624.6 1,585.8 1,705.8 1,890.5 1,799.1 1,642.2 1,720.4 1,265.5 1,246.9 1,231.6 1,581.6 1,335.9

Change in index (%) −9.4 −2.4 7.6 10.8 −4.8 −8.7 4.8 −26.4 −1.5 −1.2 28.4 −15.5

IFC Global Index

Number of stocks 37 37 37 37 37 37 37 37 37 37 36 35


56.7 60.7 63.8 64.8 64.6 64.5 63.7 57.3 57.7 58.8 60.4 58.5


66.5 79.0 91.9 83.2 71.4 78.7 84.8 87.0 85.5 82.7 71.3 89.8

P/E ratio 14.1 12.9 14.2 14.8 14.4 13.8 13.8 10.1 9.9 19.3 23.9 21.1

P/BV ratio 2.0 1.9 2.2 2.3 2.2 2.1 2.1 1.6 1.5 1.5 1.8 1.6

Dividend yield (%) 2.5 2.6 2.2 2.6 2.7 2.1 3.0 4.2 4.3 4.4 3.1 3.5


−10.2 −4.2 10.1 5.3 −3.6 −7.3 1.6 −28.4 −3.8 −2.5 16.8 −12.8


Peru 1998: (Currency in Millions) 363


Exchange Rates


2.7715 2.8140 2.8085 2.8230 2.8618 2.9395 2.9285 3.0140 3.0535 3.0680 3.1235 3.1560

Notes: The base date for the IGBVL is Dec. 1991=100. The base date for the IFCG Peru Index is Dec. 1992=100. In calculating share oftotal market cap, IFCG market cap is not adjusted for cross holdings.

Lima Stock ExchangeCarlos Seminario, PresidentMiguel Rivera, General ManagerJiron Antonio Miro Quesada 217LimaPeruTel: (51−14) 260−714Fax: (51−14) 267−650http://www.bvl.com.pe/homepage2.html

IFC Correspondent:G&B Sociedad Agente de BolsaMiro Quesada 260, 10th FloorLimaPeruTel: (51−14) 287−006Fax: (51−14) 269−434Special Assistance: Richard Amiel, ATEFSA

Peru 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bolsa de Valores deLima

256 294 298 287 233 218 246 231 248 257


In nuevos soles 5.000 439.000 1,090 4,300 10,993 17,835 27,170 31,921 47,940 36,751

In U.S. dollars 931 812 1,118 2,630 5,113 8,178 11,795 12,291 17,586 11,645

Trading Value

In nuevos soles 0.2938 25.0000 104 519 3,332 6,742 8,855 9,322 10,861 8,311


Peru 1989−1998: (Currency in Millions; End of Period Levels) 364

http://www.bvl.com.pe/homepage2.html

In U.S. dollars 90 99 130 417 1,672 3,080 3,935 3,805 4,082 2,634

Turnover ratio (%) 5.9 5.7 9.5 19.3 43.8 46.8 39.3 31.5 25.9 19.2

Local Index

IGBVL* 0.336 25.80 100.00 372.9 930.5 1,414.9 1,243.4 1,429.0 1,792.7 1,335.9

Change in index (%) 3,817.9 7,544.3 288.2 273.0 149.5 52.1 −12.1 14.9 25.4 −25.5

IFC Global Index

Number of stocks − − − 18 18 35 36 36 37 35


− − − 42.7 46.0 64.5 62.3 70.2 62.0 58.5

P/E ratio − − − 25.9 44.0 43.9 14.5 14.2 14.0 21.1

P/BV ratio − − − 2.7 3.6 3.0 2.8 2.5 2.0 1.6

Dividend yield (%) − − − − 0.8 0.7 1.3 2.4 2.3 3.5


Change in index (%) − − − − 37.2 53.5 11.0 3.1 16.6 −38.1

Economic Data


28,636 32,802 29,224 42,013 41,084 50,343 59,066 61,013 63,849 64,122


3,398.7 7,481.7 409.5 73.5 48.6 23.7 11.1 11.5 8.6 −


0.0053 0.5400 0.9750 1.6350 2.1500 2.1810 2.3035 2.5970 2.7260 3.1560


0.0032 0.2540 0.8042 1.2458 1.9921 2.1892 2.2500 2.4501 2.6604 2.9282

Notes: The base date for the IGBVL is Dec. 1991=100. The base date for the IFCG Peru Index is Dec. 1992=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Philippines

Market Performance

Philippine equities recovered some of their luster in 1998, despite the continuing fallout effects of the Asianfinancial crisis. The conundrum of high volatility attached to emerging markets in 1998 swept in the local market.Despite this, the Philippines offered a more stable environment than its neighbors, with relatively stable economicfundamentals that became apparent in the fourth quarter and the volatility it brought. For the year, the


Philippines 365

dollar−based IFCI and IFCG indexes gained 9.2% and 9.8%, respectively, while the Philippine Stock Exchange(PSE) Composite Index rose 5.3% in local currency terms. After a turbulent roller−coaster ride, the peso finishedthe year with a 2.6% appreciation against the dollar.

A frenzied currency ride influenced the unusual price pattern of Philippine equities in the first quarter, as the pesounderwent some wild swings in its value against the dollar. In January, the peso lost 6.4% of its value beforeappreciating 5.3% at the end of the quarter. The peso's appreciation allowed for a significant easing in thecountry's high interest rate environment, which sparked a steady two−month rally that took the IFCI PhilippineIndex 29.6% higher and the PSE Composite Index 18.4% higher. Share prices gained a heady 25.3% (IFCI) inFebruary alone as commitments by large banks to lower the prime lending rate from 25% to 20% took effect.

The peso also drove second−quarter results. The currency fell 9.1% against the dollar and sparked a 29.5%decline in the IFCI Index. Low first−quarter profits, both expected and realized, also contributed to the quarter'sdismal results. Factors contributing to the market's poor performance include investor nervousness over theturmoil in Indonesia, the resignation of President Suharto and the uncertainty it would bring, and gloomyeconomic indicators. The dismal economic news included a 20−month−high inflation rate in April and the slowestfirst−quarter GDP growth in five years (1.7%). The depreciation in the Japanese yen also weighed on marketsentiment by signaling more uncertainty for the region.

The following quarter highlighted the inexorable correlation between the peso's weakness and the performance ofthe stock market. A weaker peso—depreciating 1.6% each month during the quarter—fueled widespread sellingof equities and slashed 27.4% from the IFCI Index. Investors responded positively to the appointment ofPresident−elect Joseph Estrada, but optimism and euphoria quickly evaporated as news of higher inflation, aweaker peso, lower earnings reported by the country's top 100 corporations, and a 1.2% decline in the country'ssecond−quarter GDP reached the market. On earnings, the Philippine Securities and Exchange Commissionreported a year−on−year decline of 42% through the second quarter.

A marked shift in perception of the Philippine economy in the fourth quarter enticed investors back into the stockmarket. The combined effects of a hostile takeover bid for the country's largest telephone company, PLDT, lowerovernight borrowing costs, and a 12.5% appreciation in the peso against the dollar, reaped a 64.7% gain for theIFCI Index, while the PSE Composite Index rose 56.3%. The peso's strong recovery was attributed to acombination of factors: the contraction of imports, stronger inflows from overseas contract workers, partial loandisbursements from multilateral lending institutions, and the yet−to−be−remitted dollar proceeds from the sale oftwo large assets owned by food conglomerate San Miguel Corp.break


Philippines 366


IFCI Philippines Index Correlation(5−year period ending 12/98)






Philippines 1998:(Currency in Millions)



Philippine StockExchange

221 222 222 222 222 223 222 222 222 222 221 221



Philippines 1998: (Currency in Millions) 367

In pesos 1,254,9941,505,1611,512,7281,475,6681,394,7441,228,0511,136,970874,051 900,559 1,219,1741,386,0171,373,701

In U.S.dollars

29,425 37,723 39,914 36,754 35,809 29,450 27,006 19,956 20,584 30,215 35,178 35,314

Trading Value

In pesos 29,612 48,877 51,655 30,972 19,332 19,452 22,877 21,991 37,062 33,669 58,007 35,174

In U.S.dollars

694 1,225 1,363 771 496 466 543 502 847 834 1,472 904

Turnoverratio (%)

2.4 3.5 3.4 2.1 1.3 1.5 1.9 2.2 4.2 3.2 4.4 2.5

Local Index

PSE Composite* 1,948.0 2,266.3 2,238.4 2,181.3 2,011.4 1,760.1 1,607.6 1,192.3 1,259.6 1,755.0 1,975.4 1,968.8

Change inindex (%)

4.2 16.3 −1.2 −2.5 −7.8 −12.5 −8.7 −25.8 5.6 39.3 12.5 −0.3

IFC Global Index

Number of stocks 59 59 59 59 59 59 59 59 59 59 59 59


73.0 78.0 77.3 76.8 76.4 75.7 74.6 72.7 74.2 75.9 75.5 75.9


89.0 88.0 83.9 86.5 87.6 66.1 77.6 82.8 58.6 93.3 86.7 87.3

P/E ratio 11.0 14.2 14.7 14.4 14.3 12.7 11.4 8.8 9.6 13.1 14.3 15.0

P/BV ratio 1.4 1.7 1.6 1.5 1.4 1.2 1.1 0.8 0.8 1.2 1.3 1.3

Dividendyield (%)

1.4 1.1 1.0 1.0 1.0 1.2 1.3 1.5 1.6 1.2 0.8 0.8

Total returnindex*

1,815.9 2,295.4 2,406.9 2,194.4 2,098.9 1,710.9 1,549.5 1,126.6 1,192.0 1,751.2 2,048.4 2,095.7


−3.9 26.4 4.9 −8.8 −4.3 −18.5 −9.4 −27.3 5.8 46.9 17.0 2.3

Exchange Rates


42.6500 39.9000 37.9000 40.1500 38.9500 41.7000 42.1000 43.8000 43.7500 40.3500 39.4000 38.9000


Philippines 1998: (Currency in Millions) 368

Notes:The base date of the PSE Composite Index is Aug. 19, 1985=100. The base date for the IFC Philippine Index is Dec. 1984=100. In calculating share of total market cap, IFCG market cap is not


Philippine Stock ExchangeMr. Harry G. Liu, Chairman

Philippine Stock Exchange Ctr.Ortigas Center, Exchange RoadPasig City, Metro Manila 1605PhilippinesTel: (63−2) 636−0122, 636−0123Fax: (63−2) 634−5920, 634−5113

IFC Correspondent:Technistock Corporation

906 Taipan Place/Emerald Ave.Ortigas Ctr, Pasig CityMetro ManilaPhilippinesTel: (63−2) 910−8800Fax: (63−2) 910−6050

Philippines 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Philippine Stock Exchange144 153 161 170 180 189 205 216 221 221


In pesos 261,022 161,219 297,743 391,231 1,088,8201,386,4641,545,7282,121,7631,251,2821,373,701

In U.S. dollars 11,965 5,927 11,386 15,282 40,327 55,519 58,859 80,649 31,361 35,314

Trading Value

In pesos 50,730 28,569 39,407 77,032 182,180 364,297 378,983 668,817 586,173 408,679

In U.S. dollars 2,410 1,216 1,506 3,104 6,785 13,949 14,727 25,519 19,783 9,992

Turnover ratio (%) 29.1 13.5 17.2 22.4 24.6 29.4 25.8 36.5 34.8 31.1

Local Index

PSE Composite* 1,104.6 651.8 1,151.9 1,256.2 3,196.1 2,785.8 2,594.2 3,170.6 1,869.2 1,968.8

Change in index (%) 31.2 −41.2 76.7 10.2 154.8 −14.1 −6.9 22.2 −41.0 5.3

IFC Global Index

Number of stocks 18 34 30 30 37 41 45 52 59 59

Share of market cap. (%)*33.6 70.8 68.1 58.0 59.0 54.4 54.3 69.6 71.1 75.9


Philippines 1989−1998: (Currency in Millions; End of Period Levels) 369

P/E ratio 14.1 11.3 11.3 14.1 38.8 30.8 19.0 20.0 10.9 15.0

P/BV ratio 3.6 2.6 2.6 2.4 5.2 4.5 3.2 3.1 1.3 1.3

Dividend yield (%) 1.1 2.3 0.8 1.0 0.3 0.4 0.6 0.8 1.4 0.8

Total return index* 2,371.5 1,094.0 1,738.5 2,056.8 4,831.4 4,802.3 4,125.5 4,965.0 1,890.6 2,095.7

Change in index (%) 59.5 −53.9 58.9 18.3 134.9 −0.6 −14.1 20.3 −61.9 10.8

Economic Data


42,647 44,331 45,382 53,002 54,408 64,126 74,162 82,898 82,157 −


12.2 14.1 18.7 8.9 7.6 9.1 8.1 8.4 5.1 −


21.7700 27.2000 26.1500 25.6000 27.0000 24.4000 26.2300 26.3000 39.9000 38.9000


21.0509 23.4900 26.7706 24.8034 26.6398 26.1112 25.7333 26.2096 29.6301 40.9007

Notes: The base date of the PSE Composite Index is Aug. 19, 1985=100. The base date for the IFC Philippine Index is Dec. 1984=100.In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Poland

Market Performance

Global turbulence in emerging markets in the second half of 1998 overwhelmed Polish equities, particularly withthe collapse in Russia. Earlier in the year, the country's strong macroeconomic performance—GDP growth of 7%in 1997 and the 1998 projected target for inflation of 9.5%—set the market on a clear uptrend. Despite the upbeatnews, the Russian financial crisis sparked a sizable decline in Polish equities in 1998, with the IFCI Poland Indexlosing 12.3% in dollars and the Warsaw Stock Exchange (WSE) WIG Index losing 12.8% in zloty.

Share prices registered solid gains in January, February, and early March, thanks to an influx of foreign fundsdrawn by solid macroeconomic trends. The market surged on the news that National Bank intervened to sell $85million to prevent the currency from strengthening amid strong demand for Polish stocks and Treasury bills fromforeign investors. Banks led gainers as their total net profits in January rose 36% from the same period last year.

General positive sentiment on the market continued from March to early May, but shares started declining in thesecond half of May on concerns over the strength of the zloty and financial turmoil in Asia. Equities of companieswith substantial exports were particularly hurt.

Russia's instability pressured the Polish market in June, but strong economic fundamentals provided somesupport. In June, investor attention shifted toward the IPO of the 15% stake in Pekao, Poland's largest bank. OnJune 30, the day of its listing, Pekao shares surged 22% over the IPO price of PLN 45, and it became the largeststock in terms of market capitalization on the WSE. The successful IPO and expectations of an interest rate cutspurred a market rally in July. The crawling peg devaluation of the zloty slowed to 0.8% to 0.65% per month.


Poland 370

The August crash of the Russian market took a heavy toll on the performance of Polish equities in August andSeptember, when the IFCI Index fell 37.6% and 22.3%, respectively. On August 28, the market experienced themost significant drop since March 1994. To ease concerns about the currency, the Monetary Policy Council cutthe zloty's crawling peg rate from 0.65% to 0.5% per month on September 9 and the 28−day intervention rate (therepo rate) by one percentage point to 18%. Between July 17 and October 9, the IFCI Index lost 47%.

Despite acrimonious circumstances, the Polish government decided to go forward with the planned privatizationof TPSA (Polish Telecom) and was fully rewarded. The November 18 flotation of the 15% stake in TPSA on theWarsaw and London stock exchanges was the largest IPO in Central and Eastern Europe to date. The IPO almostdoubled the WSE's market capitalization to $21 billion.

The top−performing Polish equity in 1998 was brewery Zywiec, which ended the year with a 41.9% gain. InJanuary, Heineken announced its intention to acquire 75% of the shares in Zywiec. This established a trend forother companies whose strategic investors made offers to buy the shares of minority shareholders.

The Polish equity market clearly benefited from the steadily improving macroeconomic situation in the country.GDP grew by a rate of more than 5%, and the inflation rate dropped from 13.2% in December 1997 to 9.2% inNovember.break


IFCI Poland Index Correlation(5−year period ending 12/98)



Poland 371




Exchange Rate(zloty per U.S. dollar)

Poland 1998:(Currency in Millions)



Warsaw StockExchange

148 155 159 165 172 182 183 183 185 189 193 198


In zloty 43,434 54,090 53,429 56,441 49,537 58,127 61,354 44,455 44,804 44,658 66,096 71,818

In U.S. dollars 12,257 15,554 15,473 16,617 14,190 16,670 17,865 11,934 12,540 12,961 18,985 20,461

Trading Value

In zloty 1,707 3,356 3,277 2,466 2,461 2,496 4,002 2,232 2,045 1,923 2,326 2,853

In U.S. dollars 482 965 949 726 705 716 1,165 599 572 558 668 813

Turnover ratio (%) 4.0 6.9 6.1 4.5 4.6 4.6 6.7 4.2 4.6 4.3 4.2 4.1

Local Index


Poland 1998: (Currency in Millions) 372

WIG All−SharePerformance*

14,378.2 17,621.0 16,864.0 17,743.8 15,683.3 15,728.6 16,534.3 11,635.9 12,238.3 12,345.4 11,777.7 12,795.6

Change in index (%)−2.0 22.5 −4.3 5.2 −11.6 0.3 5.1 −29.6 5.2 0.9 −4.6 8.6

IFC Global Index

Number of stocks 29 29 29 29 29 29 29 29 29 29 35 35


58.8 58.5 56.3 57.4 58.3 50.8 50.9 47.8 49.3 50.1 79.3 79.7


43.1 48.5 39.4 39.9 45.8 39.6 24.7 43.3 47.3 45.6 51.4 36.7

P/E ratio 11.6 14.3 13.6 14.6 13.1 12.5 13.2 9.0 9.3 9.4 9.1 10.7

P/BV ratio 1.7 1.9 1.8 2.0 1.8 1.7 1.8 1.2 1.3 1.3 1.3 1.5

Dividend yield (%) 1.5 1.2 1.3 1.6 1.7 1.5 1.8 2.3 2.3 2.1 1.6 1.5



1.2 25.8 −4.2 8.8 −13.2 2.1 7.6 −37.6 6.2 6.4 −7.0 7.5

Exchange Rates


3.5435 3.4775 3.4530 3.3965 3.4910 3.4870 3.4343 3.7250 3.5730 3.4455 3.4815 3.5100

Notes: The base date for the WIG All−Share Performance Index is Apr. 1991=1,000. The base date for the IFCG Poland Index is Dec.1992=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Warsaw Stock ExchangeDr. Wieslaw Rozlucki, President & CEOMr. Wlodzimierz Magiera, Executive Vice PresidentNowy Swiat 6/12Warsaw, 00−400PolandTel: (48−22) 628−3232Fax: (48−22) 628−1754

IFC Correspondent:BRE Brokers S.A.Swietokrzyska 36Warsaw, 00−950PolandTel: (48−22) 636−6904Fax: (48−22) 697−4961

Poland 1989−1998:(Currency in Millions; End of Period Levels)


Poland 1989−1998: (Currency in Millions; End of Period Levels) 373

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Warsaw Stock Exchange− − 9 16 22 44 65 83 143 198


In zloty − − 158 351 5,803 7,450 11,259 23,999 42,775 71,818

In U.S. dollars − − 144 222 2,706 3,057 4,564 8,390 12,135 20,461

Trading Value

In zloty − − 29 228 3,973 11,711 6,691 14,943 26,171 31,143

In U.S. dollars − − 28 167 2,170 5,134 2,770 5,538 7,977 8,921

Turnover ratio (%) − − − 89.7 129.1 176.7 71.5 84.8 78.4 54.4

Local Index

WIG All−SharePerformance*

− − 919.1 1,040.7 12,439.0 7,473.1 7,585.9 14,342.8 14,668.0 12,795.6

Change in index (%) − − − 13.2 1,095.3 −39.9 1.5 89.1 2.3 −12.8

IFC Global Index

Number of stocks − − − 9 12 12 17 31 29 35


− − − − 79.1 48.4 43.5 78.1 58.9 79.7

P/E ratio − − − − 31.5 12.9 7.0 14.3 11.4 10.7

P/BV ratio − − − − 5.7 2.3 1.3 2.6 1.7 1.5

Dividend yield (%) − − − − 0.4 0.4 2.6 1.2 1.5 1.5


Change in index (%) − − − − 739.6 −42.4 −7.0 74.2 −17.0 −10.8

Economic Data


82,223 58,976 76,478 84,356 85,995 92,580 118,807 134,570 135,659 −


Poland 1989−1998: (Currency in Millions; End of Period Levels) 374


244.6 555.4 76.7 45.3 36.9 33.3 26.8 20.2 15.9 −


− − 10,957.0015,767.0021,444.0024,370.002.4668 2.8605 3.5250 3.5100


− − 10,576.0013,676.0018,311.0622,808.592.4154 2.6980 3.2810 3.4911

Notes: The base date for the WIG All−Share Performance Index is Apr. 1991=1,000. The base date for the IFCG Poland Index isDec. 1992=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Portugal

Market Performance

Stocks at the Lisbon Stock Exchange extended their 1997 rally, gaining 38.4% in 1998 as measured by thedollar−based IFCI Portugal Index. After a 53.5% rally in the preliminary four months, Portuguese equitiessuffered a serious setback at mid−year, as uncertainties in the U.S. and Europe, followed by the crisis in Russiaand economic instability in Latin America, combined to dampen investor enthusiasm. A sharp rally in the fourthquarter, however, sparked a rebound, prompted by cuts in international interest rates and positive domesticeconomic news.

The stock market rose during the first quarter of 1998 on a positive outlook for corporate earnings and theeconomy. The central bank implemented a policy of gradual reduction in key interest rates to allow Portugal tojoin the Euro zone in January 1999. Boosted by lower interest rates, the stock market surged, fueled all the moreby retail investors taking advantage of 1997 tax breaks. Construction companies that stood to benefit from lowerinterest rates led the market, as did banks and attractively priced telecom shares. Stocks surged further in Marchafter the European Commission endorsed Portugal's bid to adopt Europe's single currency and raised its forecastfor Portugal's 1998 economic growth to 4.0%.

The rally continued at the beginning of the second quarter on positive prospects for both banking and telecomsectors. The trend quickly reversed on talks by Germany of raising interest rates to strengthen the Euro's stature inaddition to indications of higher interest rates by the U.S. Federal Reserve Board. The rest of the quarter provedthat Portugal is closely connected to market movements elsewhere in developed as well as emerging economies.The market reacted negatively to cautious and jittery sentiment throughout the world, including uncertainty inU.S. markets, an increase in U.K. interest rates, and poor equity performances in Europe and Asia.


Portugal 375

After a brief recovery in July, the Portuguese stock market continued sliding in the third quarter amid a downturnin European markets and the United States. Despite positive half−year profits reported by large banks and soundeconomic fundamentals, the stock market followed the performances of regional and U.S. markets, falling furtheras financial situations in Asia, Russia, and also Latin America affected international bourses. Portuguese bluechips with high exposure to these regions were most severely affected, prompting cautious local investors toretreate to small cap, debt, and cash markets. By the end of the third quarter, a lack of buyers and active selling byportfolio managers who were concerned about end−of−quarter window dressing had all but wiped out 1998'sgains.

Nevertheless, the stock market reversed its downward trend early in the fourth quarter on the improvedinvestment climate in Europe, interest rate cuts in Spain, Portugal, and Italy, and renewed investor interest inattractively priced equities. After rallying in October, prices flattened in November while advances in bankingsector stocks offset losses in utility stocks. The positive investment climate returned in December, aftersimultaneous interest rate cuts by Portugal and nine other European countries reactivated demand from funds andforeign investors, eager for the January 1, 1999 introduction of the euro.break


IFCI Portugal Index Correlation(5−year period ending 12/98)




Exchange Rate(escudos per U.S. dollar)


Portugal 376


Portugal 1998:(Currency in Millions)

Notes: The base date for the BVL General Index is January 1988=100. The base date for the IFCG Portugal Index is Jan. 1986=100.In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Lisbon Stock ExchangeMr. Jose Carlos Pestana Teixeira, CEOEdificio da BolsaRua Soeiro Pereira GomesLisbon, 1649−017PortugalTel: (351−1) 790−0000Fax: (351−1) 795−2022http://www.bvl.pt

IFC Correspondent:Banco FinantiaAv. dos CombatentesTorre 1, (Lote H) − 1st Floor1600 Lisbon,PortugalTel: (351−1) 720−2000Fax: (351−1) 726−5310

Portugal 1989−1998:(Currency in Millions; End of Period Levels)


Portugal 1998: (Currency in Millions) 377

http://www.bvl.pt

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Lisbon StockExchange

182 181 180 191 183 195 169 158 148 135


In escudos 1,588,3801,257,2481,284,3481,353,6272,193,0212,586,7872,743,070 3,828,406 7,161,66910,748,307

In U.S. dollars 10,618 9,201 9,613 9,213 12,417 16,249 18,362 24,660 38,954 62,954

Trading Value

In escudos 300,394 240,449 406,158 467,263 780,284 874,620 634,139 1,102,573 3,669,5328,571,030

In U.S. dollars 1,912 1,687 2,818 3,455 4,835 5,275 4,233 7,147 20,932 47,577

Turnover ratio (%) 22.8 16.9 32.0 35.4 44.0 36.6 23.8 33.6 66.8 95.7

Local Index

BVL General* 3,287.0 2,143.4 1,977.7 1,637.9 // 848.0 919.9 887.7 1,163.5 1,922.7 2,427.3

Change in index (%) 39.5 −34.8 −7.7 −17.2 − 8.5 −3.5 31.1 65.3 26.2

IFC Global Index

Number of stocks 23 30 30 30 33 32 30 32 23 22


53.4 58.5 61.3 52.8 71.3 68.8 59.5 71.6 95.8 77.6

P/E ratio 19.0 11.8 10.9 9.0 18.0 20.3 14.8 18.1 22.9 22.8

P/BV ratio 3.4 1.7 1.3 1.0 1.7 1.8 1.4 1.7 3.1 3.4

Dividend yield (%) 1.9 2.7 3.7 4.7 2.9 3.2 3.3 2.3 1.7 1.8

Total return index* 874.5 613.8 624.3 503.1 694.6 834.0 824.5 1,064.4 1,567.4 2,198.0

Change in index (%) 40.1 −29.8 1.7 −19.4 38.1 20.1 −1.1 29.1 47.3 40.2

Economic Data


53,171 69,132 78,316 94,513 83,726 88,129 104,680 108,823 102,133 −


Portugal 1998: (Currency in Millions) 378


12.6 13.4 11.4 8.9 6.8 4.9 4.1 3.1 2.2 −


149.600 136.640 133.600 146.920 176.620 159.200 149.390 155.250 183.850 170.732


157.123 142.553 144.121 135.229 161.391 165.817 149.809 154.277 175.310 180.152

Notes: The base date for the BVL General Index is January 1988=100. Prior to 1993, IFC used the BTA Index, which had a base date of1977=100. The base date for the IFCG Portugal Index is Jan. 1986=100. In calculating share of total market cap, IFCG market cap is notadjusted for cross holdings.

Romania

Market Performance

The long−awaited recovery of the Romanian capital market failed to take shape in 1998, with domestic factorsand an unfavorable international environment weighing heavily on the market. Shares on the Bucharest StockExchange (BSE) and the over−the−counter RASDAQ continued on their steep downward trend that began inmid−1997. For the year, the IFCG Romania Index fell 67.7% in dollar terms, while the BET Index lost 50.1% inlocal currency terms. The IFCG Index was launched in April 1998.

Behind the market's weakness were prolonged delays in structural reforms to the economy and a lack of progresson privatization until late in the year. Failure to close loss−making enterprises hindered the stabilization of theeconomy and deepened the country's financial troubles. These factors contributed to a 17% plunge in industrialproduction and an estimated 5% contraction in GDP. Political instability caused by the government's resignationin March and numerous changes to the legal framework also had a serious negative impact on investor sentiment.Romania's credit rating was downgraded a total of six times by four rating agencies in 1998.

After several months of relative stability, the market plunged in May after the government failed to make progressin negotiations with the IMF on a new standby loan agreement. The decline continued over the summer as turmoilin international markets aggravated domestic anxieties. As a result, foreign portfolio investors steadily reducedtheir presence in Romania, which had a negative impact on market liquidity. Local investors continued to targetsmallcap companies and to participate in local IPOs. The Russian crisis in August triggered an even steeperdecline in the IFCG Romania Index. A lack of positive corporate news and falling confidence that the governmentwould deliver on pledges to speed up the privatization process compounded investor concerns that the crisis mightspread to Romania.


Romania 379

By November, however, the government and the State Ownership Fund began taking decisive steps towardaccelerating privatization. The successful conclusion of major deals, such as the sale of a 35% stake in telecomoperator Romtelecom, 41% stake in the Romanian Bank for Development, and the expected privatization ofAutomobile Dacia and bank Bancpost helped push the IFCG Index up 16%. The gains, however, were given upthe following month as investors became increasing anxious over the country's debt obligations. Investors areexpected to closely monitor progress on a new standby agreement with the IMF, which could prove important ifthe country is to avoid defaulting on its $2.2 billion foreign debt service obligations due in 1999.

Several blue chips retained investor interest during the year. On the BSE, Alro—one of the largest Europeanaluminum makers—was the most actively−traded stock, attracting investors because of its strong fundamentalsand well−regarded management. Interest was also high in Terapia, a highly profitable pharmaceutical producer,and Automobile Dacia, the largest domestic carmaker, which Renault has expressed firm interest in acquiring. Onthe over−the−counter market, investors focused on the recently privatized cement industry, with Lafarge Romcim,Romcif, and Moldocim being intensively traded during the year.break


IFCG Romania Index Correlation(12−month period ending 12/98)




Exchange Rate(leu per U.S. dollar)


Romania 380


Romania 1998:(Currency in Millions)



Combined* 5,642 5,687 5,690 5,697 5,700 5,703 5,707 5,709 5,719 5,722 5,745 5,753


In leu (1/1,000) 17,052.5 20,129.7 20,423.9 20,584.2 18,571.2 17,526.1 16,800.6 9,132.0 11,673.2 11,987.0 13,273.1 11,131.0

In US dollars 2,044.7 2,488.2 2,405.6 2,466.6 2,182.0 2,032.0 1,921.4 1,023.3 1,263.6 1,249.7 1,316.5 1,016.4

Trading value

In leu (1/1,000) 267.3 333.1 803.4 465.6 640.3 354.8 331.0 230.8 235.3 370.0 812.3 525.7

In US dollars 32.0 41.2 94.6 55.8 75.2 41.1 37.9 25.9 25.5 38.6 80.6 48.0

Turnover ratio (%) 3.1 1.8 4.0 2.3 3.3 2.0 1.9 1.8 2.3 3.1 6.4 4.3

Local Index

BET* 727.6 811.7 793.1 804.7 663.2 636.7 559.0 359.8 294.4 295.8 376.8 377.7

Change in index (%)11.6 11.5 −2.3 1.5 −17.6 −4.0 −12.2 −35.6 −18.2 0.5 27.3 0.2

IFC Global Index

Number of stocks 35 35 35 35 35 35 35 35 35 35 35 42


56.7 54.2 53.2 53.1 50.2 48.4 45.6 50.9 32.9 31.3 36.8 45.3


57.8 53.9 59.4 62.4 49.7 49.8 48.6 33.1 36.3 32.6 73.6 53.4

P/E ratio 79.0 87.7 89.2 93.1 81.3 76.5 70.0 3.7 2.9 3.1 3.4 −19.4

P/BV ratio 1.3 1.4 1.5 1.5 1.3 1.2 1.1 0.5 0.4 0.4 0.5 0.5

Dividend yield (%) − − − − − − − − − − − 2.3



Romania 1998: (Currency in Millions) 381


−9.6 14.4 −1.2 5.5 −15.9 −10.0 −10.2 −39.9 −22.3 −2.6 16.6 −16.1

Exchange Rates


8,340.0 8,090.0 8,490.0 8,345.0 8,511.0 8,625.0 8,744.0 8,924.0 9,238.0 9,592.0 10,082.0 10,951.0

Notes: Local market data includes both the Bucharest Stock Exchange and the RASDAQ (OTC trading system). The base date for the BETIndex is Sept. 19, 1997=1,000. The base date for the IFCG Romania Index is Dec. 1997=100. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings.

Bucharest Stock ExchangeMr. Stere Farmache, GeneralManagerDoamnei St, 8BucharestRomania 3158209Tel: (40−1) 315−8209Fax: (40−1) 315−8149http://www.bse.ccir.roEmail: bvbrel @ ccir.ro

RASDAQMr. Septimiu Stoica, President2, Expozitiei Blvd,Suite D308World Trade CenterBucharest, RomaniaTel: (40−1) 224−4641Fax: (40−1) 224−4658http://www.rasd.roEmail: [email protected]

IFC Correspondent:Bucharest Investment Group BrokerageStr. Vasile Lascar 8, Sector 2BucharestRomaniaTel: (40−1) 311−2386Fax: (40−1) 311−2620, 2701Email: [email protected]

Romania 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Combined* − − − − − 4 7 17 76 5,753


In leu − − − − − 140.0 258,953.0230,785.05,055,66411,130,960

In US dollars − − − − − 51.5 100.4 57.2 626.5 1,016.4

Trading Value

In leu − − − − − 7.0 2,464.0 17,632.0 1,921,8855,369,665.9


Romania 1989−1998: (Currency in Millions; End of Period Levels) 382

http://www.bse.ccir.ro

http://www.rasd.ro

In US dollars − − − − − 2.6 1.2 5.7 268.1 603.0

Turnover ratio (%) − − − − − − − 7.2 72.7 66.3

Local Index

BET* − − − − − − − − 757.9 377.7

Change in index (%) − − − − − − − − − −50.2

IFC Global Index

Number of stocks − − − − − − − − 35 42


− − − − − − − − − 45.3

P/E ratio − − − − − − − − − −19.4

P/BV ratio − − − − − − − − − 0.5

Dividend yield (%) − − − − − − − − − 2.3



− − − − − − − − − −67.4

Economic Data


41,451 38,299 28,847 25,122 26,359 28,038 32,841 31,179 34,843 −


− − − − − − − − − −


− − − − − 2.7166 2,578.00 4,035.00 8,070.00 10,951.00


− − − − − 2.6486 2,033.28 3,084.22 7,167.94 8,905.59

Notes: Beginning in 1998, local market data includes both the Bucharest Stock Exchange and the RASDAQ (OTC trading system).The base date for the BET Index is Sept. 19, 1997=1,000. The base date for the IFCG Romania Index is Dec. 1997=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Russia

Market Performance

Unfortunately, 1998 proved to be the most dismal year in the history of the Russian capital markets. The IFCI andIFCG Russia indexes plunged 84.2% and 87.4%, respectively, in dollar terms, making Russia the


Russia 383

worst−performing emerging market for the year. The ruble−based ASPG Index plunged 41.6%.

The beginning of the end actually came in the fall of 1997 when the Asian crisis triggered a global "flight toquality" from markets with uncertain macroeconomic conditions. As investors continued to withdraw from theRussian market in January, the ruble came under increasing pressure. However, central bank efforts prevented acurrency devaluation, and the equity market recovered somewhat in February and early March.

By late March, however, political instability caused by the dismissal of the prime minister and appointment of anew cabinet began to affect equities. The fall in world oil prices accelerated selling pressure by raising concernsabout the state budget, which largely depends on oil export revenues. In the following months, oil companyshares, which constitute a large majority of the Russian market, registered heavy losses.

During the second quarter, investor concerns about the sustainability of the exchange rate sparked heavy sellingand forced the central bank to hike interest rates to more than 100%. Ballooning yields, speculation overnegotiations with the IMF for an emergency $10 billion to $15 billion package, and the hurried issuance of alow−priced Eurobond, which undermined confidence in existing Russian foreign debt, sharply underminedmarket sentiment.

The financial crisis reached its climax in August, effectively paralyzing the financial system and triggering deeppolitical turmoil. A three−month moratorium on debt payments, a devaluation of the ruble of more than 50%, ahalt in foreign exchange trading on MICEX, and news of debt rescheduling combined to crush the stock market,which reached the lowest level in the four year history of the Russian Trading System (RTS). The impact of thecrisis was felt worldwide, but particularly across Eastern Europe.

The market stayed flat in September, despite a compromise between the government and the parliament thatresulted in the nomination of Yevgeny Primakov to the post of Russian prime minister. A new cabinet took almostthe entire month to form and subsequently failed to present a clear anti−crisis program. Talk of nationalizing anumber of industrial enterprises and even entire sectors of the economy unnerved even the most risk−hardenedinvestors. After reaching historical lows, the market fell into complete hibernation at the end of September, withdaily value traded on the RTS dropping to about $300,000.

After hitting rock−bottom in mid−October, the market rose in late−October and November, as a few braveinvestors returned to the Russian equities, attracted by substantially undervalued equities. Daily turnover was just$1−6 million during this period—meager compared to the peak of $100 million in August 1997. Meanwhile, thegovernment began working with foreign and local creditors on an agreement to restructure outstanding GKO(Treasury bills) obligations, which the government defaulted on in August.break


Russia 384


IFCI Russia Index Correlation(22−month period ending 12/98)





Exchange Rate(rubles per U.S. dollar)

Russia 1998:(Currency in Millions)



Combined 220 220 222 227 229 235 237 239 238 237 237 237

Market


Russia 1998: (Currency in Millions) 385

Capitalization

In ruble 577,683 609,842 624,014 600,023 391,719 326,958 311,206 224,206 323,694 369,271 474,301 443,895

In U.S. dollars 95,606 100,825 102,331 97,891 63,493 52,485 49,547 22,533 20,199 22,112 25,707 20,598

Trading Value

In ruble 8,071 8,203 12,439 8,416 12,732 5,852 5,807 1,877 687 982 1,917 1,478

In U.S. dollars 1,336 1,356 2,040 1,373 2,064 939 925 189 43 59 104 69

Turnover ratio (%) − 1.4 2.0 1.4 2.6 1.6 1.8 0.7 0.3 0.3 0.4 0.3

Local Index

ASP General* 1,321.4 1,329.4 1,401.6 1,336.7 872.7 734.1 697.5 503.1 726.3 828.5 1,103.8 1,032.6

Change in index (%) −25.4 0.6 5.4 −4.6 −34.7 −15.9 −5.0 −27.9 44.4 14.1 33.2 −6.4

IFC Global Index

Number of stocks 37 37 37 37 37 37 37 37 37 37 32 32


61.9 65.6 69.4 70.9 64.9 60.8 63.9 49.5 30.5 43.5 54.3 51.8


93.5 94.4 92.2 93.8 62.7 95.7 95.0 94.9 91.2 96.0 95.8 95.7

P/E ratio 5.6 6.3 6.7 6.6 4.0 3.1 3.2 1.9 1.7 2.6 4.2 3.7

P/BV ratio 0.3 0.4 0.4 0.4 0.2 0.2 0.2 0.1 0.1 0.2 0.3 0.3

Dividend yield (%) 0.2 0.2 0.2 0.0 0.6 1.4 1.4 2.3 2.6 1.6 1.0 1.1



−30.9 11.4 6.8 −3.6 −39.5 −22.2 −1.5 −62.5 −45.0 53.2 42.3 −23.7

Exchange Rates


6.0423 6.0485 6.0980 6.1295 6.1695 6.2295 6.2810 9.9500 16.0250 16.7000 18.4500 21.5500

Notes: The base date for the ASP General Index is June 20, 1994=1,000. The base date for the IFCG Russia Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.


Russia 1998: (Currency in Millions) 386

Russian Trading SystemMr. Dmitry Ponomarev,PresidentChayanova St., 15/5Moscow 125267Russian FederationTel: (7−095) 705−9031Fax: (7−095) 973−4236http://www.rtsnet.ru/Email: [email protected]

Moscow Stock ExchangeMr. Victor Sakharov, PresidentMiusskaja, Sq. 2/2Moscow 125047Russian FederationTel: (7−095) 250−3332Fax: (7−095) 250−1734http://www.mse.ru

IFC Correspondent:Skate−Press Consulting AgencyStarokaluzhskoe ShosseOffice #6434, 4th floor, bld. 6, #62Moscow, Russian FederationTel: (7−095) 784−7187Fax: (7−095) 784−7188http://www.skate.ruEmail: [email protected]

Russia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Combined − − 13 26 51 72 170 73 208 237


In ruble* − − 31,715 90,541 27,687 476,447 73,603,078208,076,612768,924,389// 443,895

In U.S. dollars − − 244 218 18 151 15,863 37,230 128,207 20,598

Trading Value

In ruble* − − 1,817 18,981 115,853 591,744 946,129 15,188,530 94,674,059 // 68,461

In U.S. dollars − − − 91 118 268 465 2,958 16,362 6,805

Turnover ratio (%) − − 11.5 31.1 196.0 234.8 2.6 10.8 19.4 11.3

Local Index

ASP General* − − − − − − − 534.5 1,772.2 1,032.6

Change in index (%) − − − − − − − − 231.5 −41.7

IFC Global Index

Number of stocks − − − − − − 25 25 37 32


Russia 1989−1998: (Currency in Millions; End of Period Levels) 387

http://www.rtsnet.ru/

http://www.mse.ru

http://www.skate.ru


− − − − − − − 83.4 66.4 51.8

P/E ratio − − − − − − − 6.3 8.1 I3.7

P/BV ratio − − − − − − − 0.3 0.5 0.3

Dividend yield (%) − − − − − − − 0.9 0.2 1.1


Change in index (%) − − − − − − − 161.1 144.6 −87.4

Economic Data


599,937 579,056 542,096 441,988 393,449 325,918 347,664 429,643 446,982 −


− − − 2,508.0 840.0 215.0 131.0 21.8 11.0 84.4


− − 130.000 415.000 1,540.0003,160.00 4,640.00 5,589.00 5,997.50 21.55


− − − 208.596 977.500 2,205.00 2,033.28 5,135.22 5,786.30 10.06

Notes: The base date for the ASP General Index is June 20, 1994=1,000. The base date for the IFCG Russia Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings. The ruble was revalued on January 1, 1998, withthe new ruble equal to 1,000 old rubles.

Saudi Arabia

Market Performance

IFC's new Saudi Arabia Index performed poorly in 1998, largely because of the impact of contracting Asianeconomies on the oil market, crude prices plunging through much of the year, and regional political tensionsputting serious downward pressure on local stock prices. The new IFCG Saudi Arabia Index, launched as astand−alone product on August 3, closed the year with a loss of 26.8% in dollar terms. The market is currentlyclosed to any direct foreign investment.

The IFCG Index fell more than 11% in dollar terms in the first quarter, and despite several monthly gains wasdown 7.2% for the year at the time the daily index was launched in August. At that time, market sentiment wassuffering from falling oil revenues and concerns about the stability of the riyal. International financial marketturmoil, however, had a limited impact because the marketplace has very little foreign activity. Concern aboutKing Fahd's health also detracted attention from the local market.

The market's slide continued through September, again on riyal concerns, despite official statements denying anydevaluation plans. Negative sentiment settled over the exchange like a cloud and continued through the rest of theyear. Slight rises were seen occasionally as investors moved in to take advantage of attractively priced blue chips,but such activity proved insufficient to stave off earlier drops.


Saudi Arabia 388

On November 2, EMDB rebalanced the IFC indexes. Saudi Arabia joined the IFCG Composite, IFCG EMEA,and IFCG Middle East and Africa index series. The lack of foreign participation in the marketplace meant thatthis did not result in the "boost" seen so often when markets join the regional or composite indexes, and Saudishares fell in November. Concern for the Saudi economy in light of the recent and continuing declines in globaloil prices contributed to the sluggishness in the marketplace, as did regional tensions in the Gulf during thestandoff between Iraq and U.N. weapons inspectors. Overall, sources familiar with the market indicated that thewait−and−see attitude will remain until the year−end budget and financial statements become available.

On December 28, the Saudi government released an austerity budget for 1999 that significantly decreasedexpenditures to offset the impact of lower oil prices. The new budget cut spending by 15.8% over previous levels,but a 44 billion riyal ($11.7 billion) deficit is still being projected. According to official sources, current plans tofinance the deficit do not include foreign borrowing.break


IFCG Saudi Arabia Index Correlation(12−month period ending 12/98)



Saudi Arabia 389




Exchange Rate(riyal per U.S. dollar)

Saudi Arabia 1998:(Currency in Millions)



Saudi ArabiaMonetary Agency

70 70 70 70 71 71 72 72 73 74 74 74


In riyal 216,951 204,561 189,954 203,384 204,960 196,219 195,202 187,364 184,159 168,777 164,269 159,655

In U.S. dollars 57,844 54,538 50,652 54,231 54,641 52,312 52,044 49,944 49,096 44,999 43,798 42,563

Trading Value

In riyal 3,642 4,898 6,864 7,069 7,327 4,206 2,439 2,455 3,021 3,340 2,793 3,382

In U.S. dollars 971 1,306 1,830 1,885 1,953 1,121 650 655 805 890 745 902

Turnover ratio (%) 1.7 2.3 3.5 3.6 3.6 2.1 1.3 1.3 1.6 1.9 1.7 2.1

Local Index


Saudi Arabia 1998: (Currency in Millions) 390

NCFEI* 191.3 181.1 167.8 178.4 181.4 173.7 172.8 165.8 163.0 149.4 145.4 141.3

Change in index (%)−2.3 −5.3 −7.3 6.3 1.7 −4.3 −0.5 −4.0 −1.7 −8.3 −2.7 −2.8

IFC Global Index

Number of stocks 20 20 20 20 20 20 20 20 20 20 21 21


71.7 70.4 70.0 70.6 70.2 71.1 71.3 70.6 70.4 68.6 73.5 72.7


88.3 89.3 90.1 90.1 86.7 91.1 90.0 87.3 90.0 84.2 88.2 83.7

P/E ratio 15.7 14.7 13.7 14.8 14.7 14.3 14.5 13.7 13.5 12.7 12.7 12.2

P/BV ratio 2.5 2.3 2.2 2.4 2.1 2.0 2.2 2.1 2.0 1.8 1.7 1.6

Dividend yield (%) − − − − − − − − − − − 5.2



0.3 −5.1 −2.3 8.1 −1.0 −3.1 0.2 −5.3 −1.9 −10.1 −1.8 −3.4

Exchange Rates


3.7506 3.7508 3.7502 3.7503 3.7510 3.7509 3.7507 3.7515 3.7510 3.7507 3.7506 3.7510

Notes: The base date for the NCFEI Index is Feb. 1985=100. The base date for the IFCG Saudi Arabia Index is Dec. 1997=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings. The NCFEI Index was multiplied by a factor often the week beginning Jan. 23, 1999. These numbers do not reflect the change.

Electronic Securities Information SystemSheikh Hamad Al−Sayri, GovernorSaudi Arabian Monetary AgencyGovernor's OfficeP.O. Box 2992Riyadh, 11169Kingdom of Saudi ArabiaTel: (966−1) 466−2000Fax: (966−1) 463−3703

IFC Correspondent:Saudi Arabian Monetary AuthorityShare Control DepartmentP.O. Box 8683RiyadhKingdom of Saudi ArabiaTel: (966−1) 466−2425Fax: (966−1) 466−2145

Saudi Arabia 1989−1998:(Currency in Millions; End of Period Levels)


Saudi Arabia 1989−1998: (Currency in Millions; End of Period Levels) 391

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Saudi Arabia MonetaryAgency

− − 59 60 65 68 69 70 70 74


In riyal − − 180,800 206,100 197,900 145,072 153,400 171,980 222,698 159,655

In U.S. dollars − − 48,213 54,960 52,773 38,686 40,907 45,861 59,386 42,563

Trading Value

In riyal − − 8,527 13,699 17,360 24,871 23,227 25,397 62,060 51,435

In U.S. dollars − − 2,274.0 3,653.0 4,629.0 6,632.0 6,194.0 6,773.0 16,549.0 13,712.0

Turnover ratio (%) − − − 7.1 8.6 14.5 15.6 15.6 31.4 26.9

Local Index

NCFEI* − − 178.8 188.9 179.3 128.2 136.8 153.1 195.8 141.3

Change in index (%) − − − 5.6 −5.1 −28.5 6.7 11.9 27.9 −27.8

IFC Global Index

Number of stocks − − − − − − − − 100 21


− − − − − − − − − 72.7

P/E ratio − − − − − − − − − 12.2

P/BV ratio − − − − − − − − − 1.6

Dividend yield (%) − − − − − − − − − 5.6


Change in index (%) − − − − − − − − − −23.4

Economic Data


82,997 104,670 118,035 123,204 118,515 120,168 125,688 136,529 140,374 −


Saudi Arabia 1989−1998: (Currency in Millions; End of Period Levels) 392


1.0 2.1 4.9 −0.1 1.1 0.6 4.9 1.2 0.0 −


− − 3.7500 3.7500 3.7500 3.7500 3.7500 3.7500 3.7500 3.7510


− − 3.7500 3.7500 3.7500 3.7500 3.7500 3.7500 3.7500 3.7510

Notes: The base date for the NCFEI Index is Feb. 1985=100. The base date for the IFCG Saudi Arabia Index is Dec. 1997=100.In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings. The NCFEI Index was multiplied bya factor of ten the week beginning Jan. 23, 1999. These numbers do not reflect the change.

Slovakia

Market Performance

The Slovakian equity market registered its worstever performance in 1998, with the koruna−based SAX Indexlosing 48.5% and the dollar−based IFCI and IFCG indexes falling 56.0% and 54.0%, respectively. Poorregulations, lack of transparency and inadequate protection of minority shareholders rights, along with insidertrading issues held investors at bay. Failure to elect a new president at the general elections in September,skepticism about political development under the previous coalition government's leadership, and uncertaintiesover the direction of government programs kept investors on the sidelines. Almost 90% of market trading tookplace outside the exchange, and therefore transactions were often sporadic and at unanticipated prices. Theabsence of institutional investors also had a negative impact on a further development of the capital market.

The market reached its lowest level since 1995 at the end of January, due to turbulent domestic politicaldevelopments. Foreign investors avoided the market, and the downturn continued through June, with the IFCIIndex losing 43.1% in U.S. dollars for the first half of 1999. Slovakia stood on the verge of a constitutional crisisduring March, as President Michal Kovac stepped down with no prospect of a swift replacement. Even though themarket seemed undervalued, investors steered clear to await September elections.

The market advanced in July, with the IFCI Index gaining 5%, the first monthly increase. Inflated prices on verylight turnover for commercial bank VUB boosted the index during the first half of July. Foreign investors latershowed keen interest in steel maker VSZ, attracted by its low prices and strong half−year profits. The Slovakianmarket was calm throughout August, relatively unaffected by the Russian crisis. Virtually all movements in theIFCI Index were the result of predetermined prices on deals arranged through the exchange and technicalcorrections.


Slovakia 393

The downturn ensued in September, as the market was dragged down by a sharp drop in the price of VUB,following large sales abroad. In October, there were signs that investor sentiment was improving, following thedismissal of an unpopular coalition government and the election of new Premier Mikulas Dzurinda. Nevertheless,the market fell as negative news from VSZ, the second largest stock in the IFCI, reached the market. Thecompany announced that it was unable to pay on time the interest on a $35 million syndicated loan.

Equities finally reversed course in December, posting a solid 11.0% monthly gain according to the IFCI Index.Gains were attributed to positive corporate actions, such as the appointment of new company boards by bothSlovakia's biggest bank Slovenska Sporitelna and VSZ. A strong performance by VUB on news of its plans to sella stake to a foreign investor also contributed to the index gain. Despite the sometimes pessimistic investmentclimate of 1998, export performance improved during the year, in response to a weaker Slovak koruna. TheSlovak National Bank abolished its 7% fluctuation band in October, and investors were hopeful that the currencydepreciation will lead to higher profits in 1999.break


IFCI Slovakia Index Correlation(22−month period ending 12/98)





Exchange Rate(koruna per U.S. dollar)


Slovakia 394

Slovakia 1998:(Currency in Millions)



Bratislava StockExchange

867 832 833 836 838 841 834 836 835 836 836 837


In koruna 57,941 56,102 51,806 48,561 40,789 38,551 39,837 40,592 35,968 33,440 31,168 35,547

In U.S. dollars 1,632 1,603 1,458 1,407 1,182 1,097 1,147 1,148 1,035 953 856 965

Trading Value

In koruna 3,002 3,734 3,080 2,977 1,276 1,724 2,758 2,327 3,101 3,496 4,052 5,036

In U.S. dollars 85 107 87 86 37 49 79 66 89 100 111 137

Turnover ratio (%) 4.9 6.5 5.7 5.9 2.9 4.3 7.0 5.8 8.1 10.1 12.5 15.1

Local Index

SAX* 154.8 150.1 138.9 130.7 111.8 108.0 111.3 113.5 100.8 89.4 82.6 94.0

Change in index (%)−15.2 −3.1 −7.4 −5.9 −14.4 −3.4 3.0 2.0 −11.2 −11.3 −7.6 13.8

IFC Global Index

Number of stocks 20 20 20 20 20 20 20 19 19 19 19 19

Share of marketcap.(%)

80.7 80.0 80.3 80.0 79.3 80.1 80.4 78.7 78.9 75.0 76.1 75.2

Share of tradingvalue (%)*

0.5 67.5 77.6 60.3 36.9 45.8 11.3 42.5 23.6 24.8 70.0 54.4

P/E ratio 14.8 13.5 12.5 11.7 9.8 −15.3 −24.6 −22.1 −18.9 −15.1 −160.4 −174.2

P/BV ratio 0.5 0.5 0.4 0.4 0.3 0.3 0.4 0.4 0.3 0.3 0.3 0.3

Dividend yield (%) 3.2 3.4 3.7 4.6 2.6 2.8 2.6 2.7 3.0 3.5 3.6 3.3


−11.9 −3.3 −8.7 −3.0 −15.3 −7.6 5.3 −0.4 −10.0 −13.6 −10.0 8.7


Slovakia 1998: (Currency in Millions) 395


Exchange Rates


35.5040 35.0060 35.5360 34.5050 34.4950 35.1340 34.7190 35.3500 34.7630 35.0780 36.4255 36.8250

Notes: The base date for the SAX Index is Dec. 1992=100. The base date for the IFCG Slovakia Index is Dec. 1995=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

The Bratislava StockExchangeMarian Sasik, SecretaryGeneralVysoka 17P.O. Box 151Bratislava, 814−99Slovak RepublicTel: (421−7) 492−56111Fax; (421−7) 492−36103http://www.bsse.sk/eindex.htm/

OTC ExchangeRM−SystemZamocke schody 2/A810 00 Bratislava 1Slovak RepublicTel: (421−7) 593−29211Fax: (421−7) 593−29218http://www.rms.sk/indexe.htm

IFC Correspondent:CA IB, a.s.Dubravska, SK−81703Bratislava, SK−81703Slovak RepublicTel: (421−7) 593−31301Fax: (421−7) 743−4111

Slovakia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bratislava StockExchange

− − − − − 18 18 816 872 837


In koruna − − − − − 34,191 36,590 69,605 63,742 35,547

In U.S. dollars − − − − − 1,093 1,235 2,182 1,826 965

Trading Value


Slovakia 1989−1998: (Currency in Millions; End of Period Levels) 396

http://www.bsse.sk/eindex.htm/

http://www.rms.sk/indexe.htm

In koruna − − − − − 3,839 24,730 71,158 72,954 36,564

In U.S. dollars − − − − − 120.0 832.0 2,321.0 2,165.0 1,037.0

Turnover ratio (%) − − − − − − 69.9 134.0 109.4 73.7

Local Index

SAX* − − − 100.0 109.6 214.3 153.8 179.0 182.5 94.0

Change in index (%) − − − − 9.6 95.6 −28.2 15.8 2.0 −48.5

IFC Global Index

Number of stocks − − − − − − 20 20 20 19


− − − − − − − 82.7 82.8 75.2

P/E ratio − − − − − − − 8.5 16.0 −174.2

P/BV ratio − − − − − − − 0.5 0.5 0.3

Dividend yield (%) − − − − − − − − 2.9 3.3


Change in index (%) − − − − − − − 19.2 −8.5 −52.9

Economic Data


17,702 15,444 10,837 11,742 11,984 13,766 17,401 18,752 19,461 −


− − − − − − − − − −


− − − − − 31.2770 29.6280 31.8950 34.9000 36.8250


− − − − − 32.0390 29.7350 30.6597 33.7022 35.2672

Notes: The base date for the SAX Index is Dec. 1992=100. The base date for the IFCG Slovakia Index is Dec.1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Slovenia

Market Performance

The Slovenian stock market turned in the strongest performance in Eastern Europe in 1998, with the SBI Indexjumping 21.4% in local currency terms and the IFCG Slovenia Index surging 15.4% in dollars. As one of the


Slovenia 397

front−runners for membership in the European Union, Slovenia continued to enjoy solid economic growth and astable government throughout 1998.

Share prices rose steadily in the first half of the year, with the IFCG Index gaining 22.9% in dollar terms. Themarket benefited from steady demand for pharmaceutical companies, such as Lek and Krka. These companiesaccounted for almost 70% of the market's trading activity. These stocks attracted foreign investors because theywere seen as attractive relative to similar companies in Central and Eastern Europe. On April 6, trading of Lekwas suspended after its shares surged past the daily fluctuation limit of 30%. On April 10, however, the exchangeabolished its rule that halts trading on an equity whose price moves 30% up or down. Also heavily traded in Apriland May was resort and mineral water company Radenska, which rose amid speculation of a takeover.

Equities edged down in June as investors awaited semiannual results and a joint action by Slovenian banks, whichagreed to lower interest rates by one to one−and−half percentage points in July. The lower rates sparked buying,and a rally ensued in July. Domestic retail and institutional investors pulled funds out of the debt market, and theresult was a fresh inflow of capital into the stock market. Faced with a limited supply of shares, stock pricesquickly surged to an all−time high. The rally came to an end in late July amid profit−taking and news of asignificant drop in half−year profits of petrol trader Petrol.

Shares entered a free−fall in mid−August as Petrol and drug makers Krka and Lek—companies with significantmarket shares in Russia—suffered losses from the Russian financial crisis. The selloff continued with the IFCGIndex losing 19.7% in local currency from the July pinnacle through November. Pharmaceutical stocks wereparticularly hard hit. Turnover remained low, and even the occasional upswing was short−lived.

In October, Slovenia's central bank tightened portfolio investment rules requiring foreign investors to wait sevenyears before selling Slovenian securities back to domestic investors. The measure helped cushion the impact ofthe Russian crisis, which was felt much harder elsewhere in Eastern Europe. Participation of foreign capital,however, has been limited by imposed regulations. Foreign participation in the stock exchange trading in 1998amounted to only 15%.

As the impact of the Russian crisis began to fade, equities reversed the trend and finished December with gains asinvestors balanced their books before year's end.break


Slovenia 398


IFCG Solvenia Index Correlation(36−month period ending 12/98)





Exchange Rate(tolars per U.S. dollar)

Slovenia 1998:(Currency in Millions)



Ljubljana StockExchange

27 27 27 27 27 27 27 27 27 26 26 28



Slovenia 1998: (Currency in Millions) 399

In tolar 291,569.7307,077.0342,005.5351,211.0352,532.3354,504.3396,440.7368,403.0363,256.6341,420.3363,265.0395,410.0

In USdollars

1,707.5 1,786.1 1,986.6 2,086.6 2,115.9 2,090.5 2,364.0 2,178.2 2,298.0 2,183.4 2,228.7 2,449.9

Trading Value

In tolar 2,943.1 7,521.0 12,296.1 5,420.6 4,450.2 8,300.4 11,640.0 15,377.8 10,743.8 5,035.0 12,292.5 20,382.9

In USdollars

17.2 43.7 71.4 32.2 26.7 48.9 69.4 90.9 68.0 32.2 75.4 126.3

Turnoverratio (%)

0.0 2.5 3.8 1.6 1.3 2.3 3.1 4.0 2.9 1.4 3.5 5.4

Local Index

SSEI* 1,415.5 1,484.1 1,629.2 1,672.0 1,672.0 1,679.6 1,891.3 1,780.4 1,758.2 1,654.8 1,652.4 1,705.8

Change inindex (%)

4.8 4.8 9.8 2.6 0.0 0.4 12.6 −5.9 −1.3 −5.9 −0.1 3.2

IFC GlobalIndex

Number ofstocks

15 15 15 15 15 15 15 15 15 15 15 14


86.7 87.1 88.6 88.0 87.3 86.9 87.2 85.5 85.6 85.4 80.4 75.5


90.5 90.3 95.4 93.1 87.5 87.2 89.1 92.3 93.3 89.0 96.4 95.3

P/E ratio 19.8 21.0 23.8 24.0 21.0 20.9 23.4 18.2 310.0 307.6 268.0 205.3

P/BV ratio 0.9 1.0 1.1 1.1 1.1 1.1 1.2 1.1 1.1 1.0 1.0 1.0

Dividendyield (%)

1.2 1.1 1.0 1.0 1.0 1.3 1.2 0.3 0.3 0.3 0.3 0.3

Total returnindex*

119.1 125.7 143.0 149.2 150.4 147.8 167.5 150.0 152.2 143.6 138.3 143.1


−0.6 5.5 13.8 4.3 0.8 −1.7 13.3 −10.4 1.4 −5.6 −3.7 3.4

Exchange Rates


170.7550 171.9276 172.1558 168.3539 166.6136 169.5777 167.6994 169.1356 158.0773 156.3695 162.9929 161.3990


Slovenia 1998: (Currency in Millions) 400

Notes:The base date for the SSE Index is Dec. 1993=1,000. The base date for the IFCG Slovenia Index is Dec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross

holdings.

Ljubljana Stock Exchange, Inc.Mr. Drasko Veselinovic, President & CEO

Mr. Tomaz Rotar, Vice President & CCOSlovenska C.56Ljubljana, 61000SloveniaTel: (386−61) 171−0211Fax: (386−61) 171−0213http://www.ljse.si/html/eng/kazalo.html

IFC Correspondent:CA IB Securities

Kotrikova 5LjubljanaSloveniaTel: (386−61) 132−1174Fax: (386−61) 133−2017

Slovenia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Ljubljana StockExchange

− − − − 16 25 17 21 26 28


In tolar − − − − − 75,590.0 39,188.1 93,173.5 271,663.3395,410.0

In US dollars − − − − − 594.6 311.0 663.2 1,624.7 2,449.9

Trading Value

In tolar − − − − − 47,108.1 40,436.8 54,380.5 56,229.7 116,403.4

In US dollars − − − − − 365.7 344.8 401.3 351.9 701.6

Turnover ratio (%) − − − − − − 70.5 82.2 30.8 34.9

Local Index

SSEI* − − − − 1,000.0 1,396.8 1,448.8 1,183.3 1,404.7 1,705.8

Change in index (%) − − − − − 39.7 3.7 −18.3 18.7 21.4


Slovenia 1989−1998: (Currency in Millions; End of Period Levels) 401

http://www.ljse.si/html/eng/kazalo.html

IFC Global Index

Number of stocks − − − − − − 10 10 15 14


− − − − − − 93.1 74.4 91.8 75.5

P/E ratio − − − − − − − 12.7 18.7 205.3

P/BV ratio − − − − − − − 0.9 0.9 1.0

Dividend yield (%) − − − − − − − 3.2 1.2 0.3



− − − − − − − 7.0 12.1 19.3

Economic Data


− − 12,660 12,521 12,678 14,387 18,746 18,853 18,201 −


− − − − − − − − − −


− − − − − 127.1292 125.9902 140.4998 167.2076 161.3990

Exchange rate(average ofperiod)

− − − − − 128.8000 117.2600 135.4983 159.7794 165.9135

Notes: The base date for the SSE Index is Dec. 1993=1,000. The base date for the IFCG Slovenia Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

South Africa

Market Performance

South African equities registered disappointing results in 1998 as both currency and equity returns exemplifiedthe market's turmoil. For the year, the IFCI and IFCG indexes registered declines of 30.3% and 30.5%,respectively, in dollar terms, while the Johannesburg Stock Exchange's All−Share Index fell 12.4% in rand.During the same period, the All−Gold Index gained 8.7% as weakness in the rand boosted revenues fromdollar−denominated bullion sales. For the year, the rand dropped 17.2% against the dollar.

The first four months of the year proved to be a misleading prognostication for the rest of 1998 as South Africanequity prices steadily climbed, bolstered by stronger world markets and increases in the price of gold. In April, therelease of favorable producer price statistics added to the market's positive sentiment and brought turnover to nearrecord levels. Gold shares also continued to be a prime driver of the market as firmer bullion prices and favorablequarterly results from several mining houses lifted share prices.

In May, the local exchange finally began to retreat as the declining rand, higher short−term interest rates, worriesover financial troubles in Asia, and weakness in major world equity markets helped depress South African share


South Africa 402

prices. Industrial and financial shares drifted mostly lower at the start of the month on concerns surrounding thepossibility of higher U.S. interest rates and because of the effects of the continuing economic crisis in Asia. Goldshares also slid as bullion prices fell below the important $300−an−ounce level.

By the start of the third quarter, a weak supply of foreign currency reserves left the government unable to ward offincreasing pressure on the rand, causing speculators to take profits. The central bank continued to tinker withovernight repurchase rates throughout July, only to induce more pessimism over the short−term future of SouthAfrican stocks. News that Labor Minister Tito Mboweni had been appointed the nation's next central bankgovernor, replacing Chris Stals in August 1999, shook the market in the first week of July. Initial reaction to theappointment proved to be negative, as the perception of Mboweni's lack of financial experience sent bond andcurrency markets into a downward frenzy. The rand took the biggest hit with the news, falling to an all−time lowagainst the dollar.

The market drifted higher in the fourth quarter, rebounding from a miserable August when South African stocksfelt the pressure of a prevailing global market deterioration that plunged the local market to a 42−month low.With a slower−than−expected rise in the September producer price index, as well as the U.S. Federal Reserve'sannouncement of a less−than−expected increase in the broad M3 money supply, JSE equities fought for somestrong results. However, despite some late rallies in the market during December, the Johannesburg StockExchange was unable to pare back all of its early losses, ending the year with a disappointing performance.break


IFCI South Africa Index Correlation(5−year period ending 12/98)



South Africa 403




Exchange Rate(rand per U.S. dollar)

South Africa 1998:(Currency in Millions)



JohannesburgStock Exchange

638 639 642 645 648 651 649 653 659 661 667 668


In rand 1,133,4511,296,1301,389,8841,519,4391,411,5501,275,4131,324,0101,286,056956,557 1,081,2171,059,7101,001,556

In U.S.dollars

229,583 262,295 275,825 300,492 273,768 216,539 215,637 200,155 162,680 192,730 186,241 170,252

Trading Value

In rand 18,330 20,651 28,524 30,711 28,807 31,525 34,141 28,785 26,643 27,814 23,540 24,210

In U.S.dollars

3,713 4,179 5,661 6,074 5,587 5,352 5,560 4,480 4,531 4,958 4,137 4,115

Turnoverratio (%)

1.6 1.7 2.1 2.1 2.0 2.3 2.6 2.2 2.4 2.7 2.2 2.3

Local Index


South Africa 1998: (Currency in Millions) 404

JSE Overall* 6,550.3 7,095.7 7,578.9 8,235.5 7,629.6 6,772.0 7,020.0 4,923.0 5,098.6 5,828.3 5,620.9 5,430.5

Change inindex (%)

5.6 8.3 6.8 8.7 −7.4 −11.2 3.7 −29.9 3.6 14.3 −3.6 −3.4

IFC GlobalIndex

Number of stocks 78 77 77 76 75 72 71 70 70 67 70 67


57.6 53.7 53.5 54.2 53.0 52.0 51.2 37.8 53.6 53.4 54.3 53.1


64.8 56.0 56.2 58.7 50.6 53.4 54.8 51.4 61.9 60.1 62.5 45.0

P/E ratio 11.7 12.3 13.3 14.6 12.5 10.5 10.5 7.8 9.1 10.4 10.7 10.1

P/BV ratio 1.7 1.8 2.0 2.1 1.8 1.6 1.6 1.2 1.2 1.5 1.6 1.5

Dividendyield (%)

2.3 2.1 2.2 1.9 2.0 2.5 2.5 3.7 3.6 3.3 3.0 3.2

Total returnindex*

218.9 234.9 247.7 270.0 238.3 183.2 180.3 121.0 138.8 169.2 160.0 148.4


5.7 7.3 5.4 9.0 −11.8 −23.1 −1.6 −32.9 14.7 21.9 −5.4 −7.3

Exchange Rates


4.9370 4.9415 5.0390 5.0565 5.1560 5.8900 6.1400 6.4253 5.8800 5.6100 5.6900 5.8828

Notes:The base date for the JSE All−Share Index is Jan. 1960=100. The base date for the IFCG South Africa Index is Dec. 1992=100. In calculating share of total market cap, IFCG market cap is not


Johannesburg Stock ExchangeMr. R.M. Loubser, Executive President

P.O. Box 1174Johannesburg, 2000South AfricaTel: (27−11) 377−2200Fax: (27−11) 834−7402http://www.jse.co.za

IFC Correspondent:HSBC Simpson McKie

HSBC PlaceG−9 Riviera RoadHoughton, JohannesburgSouth AfricaTel: (27−11) 481−4200Fax: (27−11) 646−8301


South Africa 1998: (Currency in Millions) 405

http://www.jse.co.za

South Africa 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Johannesburg StockExchange

748 732 688 683 647 640 640 626 642 668


In rand 332,367 350,726 462,187 501,324 737,632 919,802 1,022,6561,129,9491,129,3621,001,556

In U.S. dollars 131,060 137,540 168,497 103,537 171,942 225,718 280,526 241,571 232,069 170,252

Trading Value

In rand 18,607 21,130 22,231 22,134 44,077 70,104 63,237 117,099 206,838 323,682

In U.S. dollars 7,095 8,158 8,051 7,767 13,049 15,607 17,048 27,202 44,893 58,444

Turnover ratio (%) 1.6 6.2 5.5 4.6 7.1 8.5 6.5 10.9 18.3 30.4

Local Index

JSE Overall* 2,976.0 2,719.7 3,440.3 3,259.0 4,893.0 5,867.0 6,228.0 6,657.5 6,202.3 5,430.5

Change in index (%) 50.0 −8.6 26.5 −5.3 50.1 19.9 6.2 6.9 −6.8 −12.4

IFC Global Index

Number of stocks − − − 62 63 63 65 63 78 67

Share of market cap. (%)*− − − 58.1 62.7 61.1 58.0 54.4 54.0 53.1

P/E ratio − − − 13.2 17.3 21.3 18.8 16.3 10.8 10.1

P/BV ratio − − − 1.4 1.8 2.6 2.5 2.3 1.6 1.5

Dividend yield (%) − − − − − 2.2 2.3 2.7 2.5 3.2


Change in index (%) − − − − 82.4 31.3 17.8 −17.1 −11.5 −28.3

Economic Data


South Africa 1989−1998: (Currency in Millions; End of Period Levels) 406


91,753 106,682 112,309 119,850 116,998 121,444 133,613 126,238 129,094 −


14.7 14.4 15.3 13.9 9.7 9.0 8.6 7.4 8.5 −


2.5360 2.5500 2.7430 4.8420 4.2900 4.0750 3.6455 4.6775 4.8665 5.8828


2.6227 2.5900 2.7613 2.8498 3.3779 4.4918 3.7094 4.3048 4.6074 5.5383

Notes: The base date for the JSE All−Share Index is Jan. 1960=100. The base date for the IFCG South Africa Index is Dec.1992=100. The exchange rates shown prior to 1992 are for the commercial rand. Between 1992 and 1994, the financial rand isreported. South Africa abolished its dual exchange−rate regime in March 1995. In calculating share of total market cap, IFCGmarket cap is not adjusted for cross holdings. Statistics for "number of listed companies," "market capitalization" and "tradingvalue" include listed foreign comanies and domestic closed−end investment companies. "Turnover ratio" excludes arbitrage.

Sri Lanka

Market Performance

Sri Lankan equities fell prey to the subcontinent's nuclear arms race, after India and Pakistan each detonated theirown nuclear devices. Although the market picked up significantly at the end of the year, it was not enough tobring Sri Lankan equities into positive territory. For 1998, the dollar−based IFCI and IFCG Sri Lanka indexes fell29.2% and 20.9%, respectively, while the rupee−based Colombo Stock Exchange (CSE) Sensitive Index shed13.6%. The rupee depreciated 9.8% vis−à−vis the dollar.

Sri Lankan equities started the new year on a bullish note as both foreign and local institutions bought into themarket following good end−quarter 1997 earnings results. Foreign institutional investors remained interested inthe market, thanks to the listing of nine plantation issues. The earnings results and new listings proved a fruitfulcombination for the quarter, and the IFCI Index finished the period with a 5.1% gain, while the Sensitive Indexended 4.1% higher.

Persistent interest in plantation issues catapulted Sri Lankan equities to the best gains in Asia for April (up 13.2%in IFCI terms). Unfortunately, the remainder of the second quarter was marred by separate nuclear tests conductedby Sri Lanka's neighbors, India and Pakistan. Despite strong corporate fundamentals for Sri Lankan equitiesacross the board, foreign investors opted for the sidelines until the full effects of sanctions imposed on India andPakistan could be fully gauged. Second−quarter results were a dismal 35.7% loss for the IFCI Index, while theCSE Sensitive Index was better insulated from a 4.5% depreciation of the rupee and shed 24.2%.


Sri Lanka 407

Despite a solid 10.8% rise in IFCI terms in July, thanks to strong dividend payouts by plantation stocks,third−quarter returns were clearly still on a downward path. The July gains were quickly erased following thecontinuing turmoil in Asia as well as the financial problems affecting Russia. For the quarter, the IFCI Index lost18.8%, while the CSE Sensitive Index posted a milder loss of 15.6%.

Sri Lankan investors actively participated in the end−year buying wave that swept across Southeast Asia as localand foreign investors returned to the market, seeking attractively priced blue chips, banks, and plantation issues.Plantation issues remained in the spotlight after a 4.4% rise in tea exports was reported for the first eight monthsof the year. Sri Lankan equities ended the fourth quarter with a 29.1% gain on the dollar−based IFCI Index, whilethe rupee−based CSE Sensitive Index fared slightly better with a 29.9% surge. For the period, the rupee lost anadditional 3.6% against the dollar.

In regulatory news, the government launched a $2.3 million Settlement Guarantee Fund to boost investorconfidence. The fund will guarantee settlement of trades among clearing members of the Central DepositorySystem of the Colombo Stock Exchange under the current six−day settlement period.break


IFCI Sri Lanka Index Correlation(5−year period ending 12/98)



Sri Lanka 408





Sri Lanka 1998:(Currency in Millions)



Colombo StockExchange

239 239 240 240 241 243 233 233 233 233 234 233


In rupee 122,339 128,880 134,766 147,885 129,699 111,121 114,420 96,190 97,271 97,312 112,211 116,665

In U.S. dollars 1,965 2,086 2,159 2,336 1,998 1,699 1,736 1,449 1,474 1,451 1,653 1,705

Trading Value

In rupee 1,398 1,698 1,497 1,796 2,800 1,979 1,563 1,297 935 724 1,821 697

In U.S. dollars 22.0 27.0 24.0 28.0 43.0 30.0 24.0 20.0 14.0 11.0 27.0 10.0

Turnover ratio (%) 1.1 1.3 1.1 1.3 2.0 1.6 1.4 1.2 1.0 0.7 1.7 0.6

Local Index


Sri Lanka 1998: (Currency in Millions) 409

CSE Sensitive* 1,016.4 1,075.9 1,111.5 1,236.6 1,024.1 842.0 893.5 701.0 710.6 723.1 881.4 923.0

Change in index (%)−4.8 5.8 3.3 11.3 −17.2 −17.8 6.1 −21.5 1.4 1.8 21.9 4.7

IFC Global Index

Number of stocks 50 50 50 50 50 50 50 50 50 50 51 51


65.2 65.7 65.1 65.8 67.1 65.3 65.8 62.6 63.4 63.9 67.4 67.0


78.2 78.6 88.7 64.7 51.8 65.7 63.0 52.6 67.3 77.9 90.5 88.0

P/E ratio 11.1 11.8 12.1 11.6 10.2 8.3 8.9 7.1 6.8 6.9 8.3 7.7

P/BV ratio 1.3 1.4 1.4 1.5 1.3 1.0 1.1 0.9 0.9 0.9 1.1 1.1

Dividend yield (%) 2.8 2.5 2.7 2.6 3.0 4.2 4.1 5.6 5.2 5.0 4.5 4.5



−5.9 7.1 2.9 10.2 −17.8 −16.6 3.2 −20.0 3.4 −0.4 20.1 3.4

Exchange Rates


62.2500 61.7700 62.4300 63.3050 64.9300 65.4000 65.9250 66.3850 65.9850 67.0750 67.9000 68.4300

Notes: The base date for the CSE Sensitive Index is Jan. 1985=100. The base date for the IFCG Sri Lanka Index is Dec. 1992=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Colombo Stock ExchangeMr. Rienzie T. Wijetilleke, ChairmanMr. Hiran Mendis, Director General04−01, West BlockWorld Trade Centre, Echelon SquareColombo 1, Sri LankaTel: (94−1) 446−581, 445−280Fax: (94−1) 445−279http://www.lanka.net/lisl2/yellow/stocks

IFC Corresponent:Eagle NDB Fund Management Co.Ltd.163, Union PlaceColombo 02Sri LankaTel: (94−172) 288−800Fax: (94−172) 288−806, 436−522

Sri Lanka 1989−1998:(Currency in Millions; End of Period Levels)


Sri Lanka 1989−1998: (Currency in Millions; End of Period Levels) 410

http://www.lanka.net/lisl2/yellow/stocks

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Colombo StockExchange

176 175 178 190 200 215 226 235 239 233


In rupee 17,087 36,880 82,700 66,200 123,790 143,213 106,869 104,848 129,428 116,665

In U.S. dollars 427 917 1,936 1,439 2,498 2,884 1,998 1,848 2,096 1,705

Trading Value

In rupee 256 1,563 4,302 4,969 18,579 34,522 11,249 7,403 18,314 18,207

In U.S. dollars 7.0 39.0 104.0 114.0 385.0 700.0 221.0 134.0 311.0 281.0

Turnover ratio (%) 1.6 5.8 7.2 6.7 19.6 25.9 9.0 7.0 15.6 14.8

Local Index

CSE Sensitive* 341.7 680.3 1,198.6 826.6 1,442.4 1,438.8 990.5 897.7 1,068.0 923.0

Change in index (%) 98.2 99.1 76.2 −31.0 74.5 −0.3 −31.2 −9.4 19.0 −13.6

IFC Global Index

Number of stocks − − − 29 30 32 41 47 50 51


− − − 57.7 58.7 59.3 62.5 64.1 65.1 67.0

P/E ratio − − − − 27.8 17.6 8.2 9.7 11.7 7.7

P/BV ratio − − − − 4.2 2.8 1.4 1.2 1.3 1.1

Dividend yield (%) − − − − 1.6 1.7 3.0 3.1 2.6 4.5


Change in index (%) − − − − 65.4 −0.4 −37.9 −11.2 11.0 −17.3

Economic Data


6,997 8,025 8,994 9,712 10,343 11,722 13,017 13,890 15,093 −


Sri Lanka 1989−1998: (Currency in Millions; End of Period Levels) 411


11.6 21.5 12.2 11.4 11.7 8.4 7.7 15.9 9.6 −


40.0000 40.2400 42.7138 46.0000 49.5600 49.6650 53.5000 56.7300 61.7500 68.4300


37.3858 40.0692 41.5084 43.6870 48.2626 49.3288 50.7864 55.2645 58.9484 64.8311

Notes: The base date for the CSE Sensitive Index is Jan. 1985=100. The base date for the IFCG Sri Lanka Index is Dec.1992=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Taiwan, China

Market Performance

Shares at the Taiwan Stock Exchange ebbed during 1998 in response to constricted demand for export−orientedhigh−technology stocks and the destabilizing ripple effects from the Asian financial crisis. The IFCI Taiwan,China Index fell 17.9% in U.S. dollar terms, and the NT dollar was resilient, gaining 1.4%. When S&P reaffirmedthe island economy's AA+ rating in June, foreign reserves exceeded total short−term debt by three to one.Foreigners own less than 4% of market capitalization, with the legal limit for 1998 at 30%. Most of the sellingpressure came from local institutions and retail investors. Retail investors are responsible for approximately 80%of trading volume.

A stronger NT dollar, positive performance in trend−setting computer shares, and confidence that the regionalcrisis had reached its climax heaved the market higher in the first two months. In addition, the positiveperformance of computer stocks listed on the U.S. Nasdaq Stock Exchange reassured investors that localelectronic companies would show steady profit growth.

As the economic outlook deteriorated and contagion effects from the region mounted in the next two quarters,investors unloaded jittery computer shares and the IFCI Index plunged 34.4%. Bank stocks fell on record losses inAsian investments and deteriorating loan quality. Companies scaled back local investments, as high interest ratesthroughout the region stymied growth and reduced demand for locally made products. TSMC, the world's largestchipmaker, reported that profits in the second quarter tumbled 46% from the first quarter, raising fears that thetech sector would be severely bruised by the Asian crisis. Similarly, International Data Corp. posted a decrease inthe value of computer sales in Asia—except in Japan—by 29% during the first quarter. Political upheaval inIndonesia and atomic tests in India and Pakistan fed the weak prognosis. In August, Russia's move towarddevaluing the ruble and suspension of payments on foreign loans roiled the market further. Weakness in theJapanese yen, which sank to an eight−year low of 147.14 on August 11, mounted competition against the island'sexports. By September, the Ministry of Finance was determined to resist block speculation and tightened rulesgoverning short−selling, instituting a "tick rule" similar to Hong Kong's to prevent short sellers from aggravatingindex declines.


Taiwan, China 412

The market rebounded 8% in IFCI Index terms during the last quarter, as foreigners became more active. Foreigninvestors took their cue from regional market rallies, a revival in Asian portfolio investments, and rises in U.S.high−technology stocks. Computer shipments to the U.S. rose 15% in the third quarter, compared to the previousyear. Moreover, preliminary data showed real GDP growth for the year was 4.8%, admirable compared to manyAsian economies. Undermining the rebound was a less enthusiastic reception from local participants, whoresponded with caution to a spate of stock payment defaults. Stock payment defaults totaling US$30.8 million inNovember sent prices reeling and forced the government to create a $8.7 billion fund to stabilize financialmarkets. Although the fund for official share purchases and liquidity assistance to companies contained thedamage and fueled a 12% rise in the local TAIEX Index through the December 12 elections, it aroused concernabout the frail health of several financial firms. The ruling Nationalist Party won 55% of the parliament's directlyelected seats in December, compared with 51% in the outgoing chamber.break


IFCI Taiwan, China Index Correlation(5−year period ending 12/98)



Taiwan, China 413




Exchange Rate(NT dollars per U.S. dollar)

Taiwan, China 1998:(Currency in Millions)



Taiwan StockExchange

405 405 408 411 412 416 416 419 421 428 431 437


In New Taiwandollars

9,699,67011,097,46411,037,21510,067,5569,441,0018,468,4958,617,5487,811,2088,451,5689,237,6239,255,8708,377,035

In U.S.dollars

284,882 345,974 335,814 305,313 277,881 246,460 250,765 224,106 245,867 284,550 285,402 260,015

Trading Value


1,453,1744,526,848 3,647,688 2,879,608 2,172,1852,639,2822,594,2601,792,7672,043,7731,889,3762,411,9601,568,048

In U.S.dollars

42,680 141,129 110,983 87,328 63,935 76,812 75,491 51,435 59,456 58,199 74,372 48,671

Turnoverratio (%)

15.2 43.5 33.0 27.3 22.3 29.5 30.4 21.8 25.1 21.4 26.1 17.8


Taiwan, China 1998: (Currency in Millions) 414

Local Index

TAIEX* 8,085.5 9,202.6 9,091.2 8,304.2 7,903.3 7,548.8 7,653.5 6,550.1 6,833.9 7,166.0 7,177.2 6,418.4

Change inindex (%)

−1.2 13.8 −1.2 −8.7 −4.8 −4.5 1.4 −14.4 4.3 4.9 0.2 −10.6

IFC GlobalIndex

Number ofstocks

98 98 98 98 98 98 98 98 98 98 106 106


57.1 57.2 55.6 55.3 55.7 57.9 57.9 54.1 53.3 51.9 61.3 61.4


42.9 50.7 43.7 42.0 36.7 38.5 34.7 32.6 41.4 44.7 61.5 60.7

P/E ratio 28.2 32.3 31.3 28.4 26.8 25.0 23.5 19.9 20.8 22.1 23.9 21.7

P/BV ratio 3.0 3.4 3.3 3.0 2.8 2.6 2.6 2.2 2.4 2.5 2.9 2.6

Dividendyield (%)

0.7 0.6 0.6 0.7 0.8 0.8 0.7 0.8 0.8 0.7 0.7 0.7

Total returnindex*

970.3 1,181.8 1,117.9 1,005.8 910.0 835.7 849.5 706.4 760.5 858.8 909.3 826.2


−5.3 21.8 −5.4 −10.0 −9.5 −8.2 1.6 −16.8 7.7 12.9 5.9 −9.1

ExchangeRates


34.0480 32.0760 32.8670 32.9745 33.9750 34.3605 34.3650 34.8550 34.3745 32.4640 32.4310 32.2175

Notes:The base date for the TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) is 1966=100. The base date for the IFCG Taiwan, China Index is Dec. 1984=100. In calculating share of

total market cap, IFCG market cap is not adjusted for cross holdings.

Taiwan Stock Exchange Co.Mr. C.Y. Lee, Chairman

10F, City Building#85 Yen−Ping S. RoadTaipeiTaiwan, Republic of ChinaTel: (886−2) 2348−5678Fax: (886−2) 2348−5232http://www.tse.com.tw

IFC Correspondent:Wellphone Securities

No. 1 Section 2Nanking E. RoadTaipeiTaiwan, Republic of ChinaTel: (886−2) 581−6111Fax: (886−2) 563−0537


Taiwan, China 1998: (Currency in Millions) 415

http://www.tse.com.tw

Taiwan, China 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Taiwan StockExchange

181 199 221 256 285 313 347 382 404 437



6,174,164 2,681,911 3,184,0282,545,3025,145,4106,501,682 5,108,292 7,524,211 9,402,278 8,377,035

In U.S. dollars 237,012 100,710 124,864 101,124 195,198 247,325 187,206 273,608 287,813 260,015

Trading Value


25,407,96419,031,2829,682,7385,995,7489,056,71618,812,11210,151,19812,907,58937,241,14829,618,969

In U.S. dollars 965,840 715,005 365,232 240,667 346,487 711,346 383,099 470,193 1,297,474 884,698

Turnover ratio (%) 531.7 429.8 330.1 209.3 235.5 323.1 174.9 204.4 440.0 333.2

Local Index

TAIEX* 9,624.2 4,530.2 4,600.7 3,377.1 6,070.6 7,124.7 5,173.7 6,933.9 8,187.3 6,418.4

Change in index (%)88.0 −52.9 1.6 −26.6 79.8 17.4 −27.4 34.0 18.1 −21.6

IFC Global Index

Number of stocks 62 70 70 70 78 92 93 90 98 106


62.1 81.7 66.5 59.8 63.9 64.8 60.4 61.0 59.6 61.4

P/E ratio 53.6 25.0 22.3 16.6 34.7 36.8 21.4 28.2 28.9 21.7

P/BV ratio 10.8 4.0 3.3 2.1 3.9 4.4 2.7 3.3 3.1 2.6

Dividend yield (%) 0.6 0.0 0.9 1.8 0.8 0.7 1.2 0.9 0.6 0.7

Total return index* 1,407.1 690.8 686.6 503.7 952.2 1,166.2 808.7 1,110.8 1,025.0 826.2

Change in index (%)100.0 −50.9 −0.6 −26.6 89.0 22.5 −30.7 37.4 −7.7 −19.4


Taiwan, China 1989−1998: (Currency in Millions; End of Period Levels) 416

Economic Data


149,159 160,155 179,404 212,116 222,629 241,014 260,213 272,325 283,392 −


4.4 4.1 3.6 4.5 2.9 4.1 3.7 3.1 0.9 −


26.0500 26.6300 25.5000 25.1700 26.3600 26.2880 27.2870 27.5000 32.6680 32.2175


26.3066 26.6170 26.5112 24.9130 26.1387 26.4458 26.4976 27.4517 28.7028 33.4792

Notes: The base date for the TAIEX (Taiwan Stock Exchange Capitalization Weighted Stock Index) is 1966=100. The base date for the IFCGTaiwan, China Index is Dec. 1984=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Thailand

Market Performance

Thailand stocks recovered from a four−year downtrend in 1998, becoming the second−best−performing Asianmarket behind Korea. Despite a recession, the IFCI Thailand Index rose 34.3% in dollars in response to a strongerbaht and consolidation in the financial sector. The market recouped barely half of 1997's IFCI Index lossesbecause regional economic malaise hindered growth, as reflected by an approximate 8% reduction in GDP.

The stronger baht set off a first−quarter rally, and the IFCI Index rose 62.6% in dollars, while the currency rose to39.3 baht from 48.2 against the dollar in December 1997. A decision by the central bank to dismantle atwo−tiered baht exchange market on January 30 stimulated demand among foreign investors. The governmenteliminated different onshore and offshore rates, in line with the stipulations for reform under the IMF's $17.2billion emergency credit line in 1997.

The IFCI Index plunged 48.0% in the second quarter, as the baht slid back to 42.3 and interest rates remained atsix−year highs of approximately 13%. The higher servicing cost of foreign−denominated debt and concern thatsteep interest rates would trigger bankruptcies battered bank stocks. The central bank ordered banks torecapitalize to boost reserves to cover loan defaults, but as companies competed for limited funds, pricesplummeted further. Regional factors added impetus, with tensions on the Indonesia political front in May andconcern about economic slowdowns in Hong Kong and Malaysia combining to force stocks lower. Because Asiareceives more than 50% of Thai exports, pessimism that the Thai economic recovery would be delayed waspervasive. Export−oriented firms that had bucked the decline no longer benefited from the cheaper Thai baht asregional currencies weakened. In positive news, many companies returned a profit for the first quarter because ofa 23% strengthening of the Thai baht.


Thailand 417

Stocks sank to their lowest point during the third quarter, as external factors offset local optimism over fallinginterest rates and a stronger currency. In July, the market rose s lightly in reaction to a new interest rate policy thatcapped bank deposit rates at two percentage points above the average savings rate at the five biggest banks. Yetwhen the Japanese yen reached an eight−year low in August, hopes for an export−driven recovery were dashed.Rumors that China may devalue its currency, trepidation over second−quarter results, and Russia's move todevalue its currency all knocked stocks to an 11−year low in August.

Thai stocks shot higher between September and November as foreign investors entered in full force. The pace ofrestructuring and policy reforms sparked the rally, while the government produced tax incentives for banks thatrestructure delinquent loans. Bank stocks traded cautiously in the days preceding the December 15 deadline forbanks to submit recapitalization plans, and the rally fizzled out on non−performing loan fears. According to thecentral bank, 46% of Thai bank loans were at least three months delinquent at year's end. The Financial SectorRestructuring Authority auctioned loans from defunct finance companies and property developers but only sold8% of the total 388 billion baht of loans ($11 billion) at the December auction, with the winners bidding anaverage 37% of the loan's face value. Stocks also fell on delays in legislation concerning the privatization of stateenterprises.break


IFCI Thailand Index Correlation(5−year period ending 12/98)



Thailand 418




Exchange Rate(baht per U.S. dollar)

Thailand 1998:(Currency in Millions)



Stock Exchange ofThailand

432 432 431 431 430 428 423 422 422 422 422 418


In baht 1,545,0071,689,5291,476,5201,345,6031,121,225924,223 923,313 759,451 898,555 1,187,1221,295,9401,268,199

In U.S. dollars 29,289 39,200 37,618 34,793 27,760 21,849 22,603 18,125 22,731 32,307 35,899 34,903

Trading Value

In baht 71,022 118,217 75,426 30,391 31,682 35,248 40,211 37,482 46,486 123,815 174,272 70,919

In U.S. dollars 1,346 2,743 1,922 786 784 833 984 895 1,176 3,370 4,827 1,952

Turnover ratio(%)

5.3 7.3 4.8 2.1 2.6 3.4 4.3 4.4 5.6 11.9 14.0 5.5

Local Index

SET* 495.2 528.4 459.1 412.1 325.6 267.3 266.7 214.5 253.8 331.3 362.8 355.8


Thailand 1998: (Currency in Millions) 419

Change inindex (%)

32.9 6.7 −13.1 −10.2 −21.0 −17.9 −0.2 −19.6 18.3 30.5 9.5 −1.9

IFC Global Index

Number of stocks 74 74 74 74 74 74 74 74 74 74 64 64


76.9 72.7 71.6 71.1 70.5 71.1 73.8 71.4 76.6 73.9 73.2 73.7


65.5 43.4 48.8 74.7 82.0 84.3 81.6 72.6 78.1 75.3 76.7 77.0

P/E ratio −48.1 −51.1 −4.5 −3.8 −3.1 −2.5 −2.5 −1.9 −2.4 −3.3 −3.7 −3.6

P/BV ratio 1.1 1.2 1.2 1.1 0.9 0.7 0.7 0.6 0.7 1.1 1.2 1.2

Dividend yield(%)

5.3 4.8 3.8 2.8 2.4 3.0 3.0 1.9 1.0 0.7 0.6 0.6

Total returnindex*

274.0 363.5 343.1 312.3 224.2 169.4 171.8 131.5 171.1 251.4 285.8 278.7


30.4 32.6 −5.6 −9.0 −28.2 −24.4 1.4 −23.4 30.1 46.9 13.7 −2.5

Exchange Rates


52.7500 43.1000 39.2500 38.6750 40.3900 42.3000 40.8500 41.9000 39.5300 36.7450 36.1000 36.3350

Notes:The base date for the SET Index is Apr. 30, 1975=100. The base date for the IFCG Thailand Index is Dec. 1984=100. In calculating share of total market cap, IFCG market cap is not adjusted

for cross holdings.

Stock Exchange of ThailandMr. Singh Tangtatswas, President

The Stock Exchange of Thailand Building62 Rachadapisek Road, KlongtoeyBangkok, 10110ThailandTel: (66−2) 229−2000, 654−5656Fax: (66−2) 654−5649http://www.set.or.th


IFC Correspondent:Mutual Fund Public Co. Ltd.

30th−32nd Floor, Lake Ratchada Building193−195 Rachadapisek Road, KlongtoeyBangkok, 10110ThailandTel: (66−2) 661−9000, 661−9099Fax: (66−2) 661−9106http://www.mfcfund.com


Thailand 1989−1998:(Currency in Millions; End of Period Levels)


Thailand 1989−1998: (Currency in Millions; End of Period Levels) 420

http://www.set.or.th

http://www.mfcfund.com

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Stock Exchange ofThailand

175 214 276 305 347 389 416 454 431 418


In baht 656,842 604,566 897,159 1,485,0193,325,3933,300,7693,564,5692,559,5791,133,3441,268,199

In U.S. dollars 25,648 23,896 35,815 58,259 130,510 131,479 141,507 99,828 23,538 34,903

Trading Value

In baht 344,778 584,154 767,056 1,830,0262,201,1482,018,9551,420,3301,124,860724,252 855,169

In U.S. dollars 13,452 22,894 30,089 72,060 86,934 80,188 57,000 44,365 23,119 20,734

Turnover ratio (%) 78.5 92.6 102.2 153.6 91.5 60.9 41.4 36.7 39.2 71.2

Local Index

SET* 879.2 612.9 711.4 893.4 1,682.8 1,360.1 1,280.8 831.6 372.7 355.8

Change in index (%) 127.3 −30.3 16.1 25.6 88.4 −19.2 −5.8 −35.1 −55.2 −4.5

IFC Global Index

Number of stocks 29 44 51 51 58 61 76 88 74 64


45.8 44.0 50.0 48.7 57.2 60.6 67.3 67.1 73.3 73.7

P/E ratio 16.3 8.7 12.0 13.9 27.5 21.2 21.7 13.1 −32.8 −3.6

P/BV ratio 3.1 2.1 2.1 2.5 4.7 3.7 3.3 1.8 0.8 1.2

Dividend yield (%) 7.9 4.2 1.9 2.6 1.5 2.0 2.2 3.3 7.7 0.6

Total return index* 679.3 538.4 641.8 900.4 1,827.8 1,621.2 1,598.1 1,013.4 210.1 278.7

Change in index (%) 100.8 −20.7 19.2 40.3 103.0 −11.3 −1.4 −36.6 −79.3 32.7

Economic Data


72,251 85,345 98,234 111,453 125,213 144,366 168,129 181,445 153,909 −


Thailand 1989−1998: (Currency in Millions; End of Period Levels) 421


5.4 6.0 5.7 4.1 3.4 5.0 5.8 5.8 5.6 −

Exchange rates (end ofperiod)

25.6100 25.3000 25.0500 25.4900 25.4800 25.1050 25.1900 25.6400 48.1500 36.3350

Exchange rates(average of period)

25.6308 25.5160 25.4933 25.3960 25.3198 25.1779 24.9180 25.3545 31.3278 41.2454

Notes: The base date for the SET Index is Apr. 30, 1975=100. The base date for the IFCG Thailand Index is Dec. 1984=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Trinidad & Tobago

Market Performance

A pro−business climate and prudent macroeconomic management continued to attract foreign investment in 1998,helping the Trinidad and Tobago Stock Exchange buck the year's trend toward huge losses among emergingmarkets. Stocks soared relative to most emerging markets, with the local TTSE Index surging 23.7% in T&Tdollar terms, in spite of record−low energy prices and decreasing government revenue. Trinidad and Tobagoequities registered the sixth best performance among the eighteen markets with IFCG frontier indexes in 1998,rising 17.4% in local currency terms and 17.5% in U.S. dollar terms.

Equities rose over eight successive months on economic growth expectations of around 4.3% for the year but sankin three of the final four months of 1998 as neighboring Latin American markets tumbled in the wake of Braziliancapital flight. The trade balance deteriorated sharply from diminished oil export revenue and increased capitalimports, placing downward pressure on the local currency. Central bank intervention helped the Trinidad andTobago dollar appreciate 0.11% over the year.

Stocks performed robustly in the first quarter in response to the government's intention to resume its privatizationprogram. The IFCG Index rose 10.1% over the period, spurred by remarks of Planning and Development MinisterTrevor Sudama that the government would seek to earn US$90.6 million by selling 30 state−run companies. InFebruary, the government maintained its resolve, announcing plans to cash out of its majority stake in NationalFlour Mills, the largest flour mill in the Caribbean.

In the second quarter, investors shook off worries over the glut in world oil and natural gas markets, sending theIFCG Index up 6.4% in spite of abysmal commodity prices. The economy grew 0.8% over the period largelybecause of 11.2% growth in the petrochemicals subsector of the oil industry as two ammonia plants and one


Trinidad & Tobago 422

methanol facility commenced operations. In spite of a sharp contraction in the agricultural sector in the quarter,increasing electricity and water demand by consumers and industry pushed the year−on−year GDP growth rate to4.5% for the first six months of 1998.

Confidence in the economy remained steady in the third quarter, which helped the market record another stellarperformance. The market gained 5.2% even as neighboring Latin American markets and far−off East Europeanbourses plummeted. Investors pushed shares higher in spite of the government's 1% budgetary shortfall from softoil prices. Oil accounts for 15% of government revenues. Investors were also unfazed by higher food prices,which forced the government to revise its projection for 1998 inflation from 3.8% to 6.3%.

The IFCG Index sank 4.8% in the fourth quarter as investors reassessed news of an increasing government budgetdeficit, which was expected to lower GDP and earnings growth in 1999. The market decline came in spite of othergood news. The government's effort to diversify the economy away from the energy sector was given a majorboost when Norsk Hydro announced its intention to invest in an aluminum smelter facility that would export toU.S. and Latin American automobile industries. Also, Moody's awarded the government kudos as the ratingagency upgraded domestic currency bonds, citing a 20% decline in public debt since 1993. The higher rating wasexpected to increase domestic bond offerings as access to foreign credit remained difficult.break


IFCG Trinidad & Tobago Index Correlation(36−month period ending 12/98)



Trinidad & Tobago 423




Exchange Rate(T&T dollars per U.S. dollar)

Trinidad & Tobago 1998:(Currency in Millions)



Trinidad andTobago StockExchange

24 24 24 24 24 24 24 24 24 24 24 25


In Trinidad &Tobago dollars

20,121.2 20,551.3 21,296.4 22,211.5 22,351.1 24,313.1 24,511.8 26,892.2 25,592.8 25,488.5 24,738.6 24,681.0

In US dollars 3,193.9 3,262.2 3,380.7 3,525.8 3,547.9 3,859.3 3,891.4 4,272.0 4,062.5 4,045.9 3,926.9 3,921.8

Trading Value

In Trinidad &Tobago dollars

78.5 40.4 70.3 149.6 78.6 255.6 74.5 84.7 97.9 33.3 45.5 105.2

In US dollars 12.5 6.4 11.2 23.7 12.5 40.6 11.8 13.5 15.5 5.3 7.2 16.7

Turnover ratio (%) 0.2 0.2 0.3 0.7 0.3 1.1 0.3 0.3 0.4 0.1 0.2 0.4

Local Index

TTSE* 361.0 369.0 382.3 398.7 401.5 434.7 442.3 479.3 455.9 454.1 440.9 436.3

Change in index(%)

2.2 2.2 3.6 4.3 0.7 8.3 1.8 8.4 −4.9 −0.4 −2.9 −1.0

IFC Global Index

Number of stocks 11 11 11 11 11 11 11 11 11 11 11 11

75.2 75.2 75.0 74.3 74.1 70.4 71.5 67.9 70.6 71.4 71.4 69.8


Trinidad & Tobago 1998: (Currency in Millions) 424



78.9 80.4 95.5 93.1 90.6 97.6 84.6 90.6 90.4 88.6 94.9 95.3

P/E ratio 18.0 18.3 17.2 16.4 16.5 17.0 17.4 18.2 18.0 18.1 17.6 17.2

P/BV ratio 3.4 3.5 3.6 3.6 3.6 3.7 3.8 4.0 3.9 4.0 3.8 3.8

Dividend yield (%) 22.5 28.3 27.5 27.5 27.5 27.0 26.3 25.5 25.8 25.8 26.4 19.0



16.1 8.8 3.5 3.9 0.9 3.2 2.6 4.4 −1.2 0.9 −2.7 −2.4

Exchange Rates


6.2999 6.2999 6.2995 6.2998 6.2999 6.2998 6.2990 6.2950 6.2998 6.2998 6.2998 6.2932

Notes: The base date for the TTSE Index is Jan. 1983=100. The base date for the IFCG Trinidad & Tobago Index is Dec. 1995=100. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Trinidad and Tobago Stock ExchangeMr. Hugh Edwards, General ManagerMr. Anthony Taitt, Deputy General Manager65 Independence SquarePort of SpainTrinidad & TobagoTel: (868) 625−5107Fax: (868) 623−0089http://stockex.co.tt

IFC Correspondent:Ansa Finance and Merchant Bank Ltd.Tatil Building11 Maraval RoadPort of SpainTrinidad & TobagoTel: (868) 623−8672Fax: (868) 625−5869

Trinidad & Tobago 1989−1998:(Currency in Millions; end of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Trinidad and Tobago StockExchange

31 30 29 28 26 27 27 23 24 25


Trinidad & Tobago 1989−1998: (Currency in Millions; end of Period Levels) 425

http://stockex.co.tt


In Trinidad & Tobagodollars

1,748.4 2,956.0 2,851.7 2,185.0 2,851.0 3,873.9 6,750.7 8,771.6 19,634.5 24,681.0

In US dollars 411.4 695.5 671.0 509.7 484.9 663.0 1,125.1 1,404.6 3,116.6 3,921.8

Trading Value

In Trinidad & Tobagodollars

146.7 235.0 338.7 95.0 301.0 300.9 812.4 643.0 843.1 1,114.2

In US dollars 34.5 55.3 79.7 22.4 56.3 51.7 137.2 106.5 133.8 176.9

Turnover ratio (%) 10.2 10.0 11.7 3.8 12.0 8.9 15.3 8.3 5.9 5.0

Local Index

TTSE* 48.7 83.1 81.8 60.2 82.5 88.6 150.2 167.4 352.3 436.3

Change in index (%) 50.3 70.6 −1.6 −26.4 37.0 7.4 69.5 11.5 110.5 23.8

IFC Global Index

Number of stocks − − − − − − 11 11 11 11

Share of market cap. (%)* − − − − − − 77.4 73.1 74.2 69.8

P/E ratio − − − − − − − 15.5 17.4 17.2

P/BV ratio − − − − − − − 1.9 3.3 3.8

Dividend yield (%) − − − − − − − 3.9 11.8 19.0



− − − − − − − 15.5 137.2 43.6

Economic Data


4,323 5,068 5,308 5,780 4,581 4,950 5,305 5,649 5,892 6,159


11.4 11.1 3.8 6.4 10.8 8.8 5.2 3.4 3.6 −


4.2500 4.2500 4.2500 4.2872 5.8790 5.8431 5.9999 6.2450 6.2999 6.2932


4.2500 4.2500 4.2500 4.2500 5.3511 5.8180 5.9192 6.0371 6.2999 6.2983


Trinidad & Tobago 1989−1998: (Currency in Millions; end of Period Levels) 426

Notes: The base date for the TTSE Index is Jan. 1983=100. The base date for the IFCG Trinidad & Tobago Index is Dec.1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Tunisia

Market Performance

The Tunisian equity market was characterized by a lack of trading volume and sporadic investor interest during1998. The stock market weathered well the Brazilian and Russian financial crises, and ended 1998 with a modestloss of 6.4% as measured by the dollar−based IFCG Tunisia Index.

The market appreciated slightly in January on light turnover as investors awaited the release of year−endcompany reports. Trading activity remained flat in February but inched up in March, with blue chips leading thegains on the back of positive corporate earnings reports for fourth quarter 1998. In March, a trade agreementbetween Tunisia and the European Union took effect that aims to dismantle trade barriers over the next 12 years.

Several religious holidays in April shortened trading weeks and kept prices fluctuating in a narrow range. Toimprove the competitiveness of Tunisian companies, the government established a new organization to investigatethe subject and recommend methods of adapting domestic firms to international standards. Share prices slid inMay in a market once again characterized by a lack of investor interest. On the economic front, the minister foreconomic development pledged that Tunisia would privatize another 50 firms before the year 2000. The bearishtrend continued in June, with the IFCG Index dropping 6.5%, the largest decline of 1998. Although investorslooked favorably on reports that foreign investment grew 24% in 1997, the enthusiasm was tempered by news thatthe level of economic activity was virtually unchanged year−on−year.

The Tunisian equity market was steady and trading activity was light in July. Several index constituents, however,saw sizable price changes. The government reported that portfolio investments jumped 85% in 1997, despite thebearish sentiment in the equities market during the year. The market gained ground in August for the first monthsince April, with the IFCG Index rising nearly 1.8% in dollar terms. Light turnover continued to plague themarket in July. July's inflation report revealed a 3.3% year−on−year increase, slightly below projections of a 3.7%rise. Tunisia was mostly unaffected by world financial market volatility in August and September, posting modestgains of 1.8% and 3.5%, respectively, as measured by the dollar−based IFCG Index. Investors were inactive,however, choosing to await the sale of part of the government's stake in bottle manufacturer Sotuver, scheduledfor October.

Shares held steady in October, with slight price movements usually the result of block trades in major stocks,especially in the insurance and banking sector. The successful privatization of two cement companies and Sotuverbrought sufficient cash into government coffers that it was not necessary to raise funds on the expensive


Tunisia 427

international debt market during the last two weeks of October. The dollar−based IFCG Index lost 3.1% inNovember on a combination of regional worries and weakness in the local currency. The market was guided byblock trades in December, fluctuating in both directions with daily changes in local indexes usually in fractions ofa percent.break


IFCG Tunisia Index Correlation(36−month period ending 12/98)





Exchange Rate(dinar per U.S. dollar)

Tunisia 1998:(Currency in Millions)


Tunisia 1998: (Currency in Millions) 428



Tunis StockExchange

34 34 34 35 35 37 37 37 38 38 38 38


In dinars 2,670.4 2,704.3 2,729.5 2,704.9 2,633.6 2,576.3 2,489.1 2,510.3 2,511.2 2,484.9 2,485.3 2,487.0

In US dollars 2,322.1 2,338.1 2,312.9 2,344.1 2,285.1 2,217.9 2,167.3 2,194.5 2,295.6 2,305.1 2,234.4 2,268.3

Trading Value

In dinars 17.7 13.9 20.9 9.9 22.8 27.2 18.9 8.1 11.2 17.4 16.9 28.9

In US dollars 15.4 12.0 17.8 8.6 19.8 23.4 16.5 7.1 10.3 16.2 15.2 26.4

Turnover ratio (%) 0.1 0.5 0.8 0.4 0.8 1.0 0.8 0.3 0.4 0.7 0.7 1.2

Local Index

BVM General* 460.0 462.3 465.8 462.0 462.3 457.5 453.9 460.9 462.1 464.6 463.1 464.6

Change in index (%) 0.5 0.5 0.7 −0.8 0.1 −1.0 −0.8 1.5 0.3 0.5 −0.3 0.3

IFC Global Index

Number of stocks 13 13 13 13 13 13 13 13 13 13 13 13


72.2 72.8 73.2 72.7 72.2 70.1 69.7 69.4 68.8 68.6 68.3 67.8


30.3 58.2 65.8 69.7 43.4 30.1 39.7 72.0 50.9 71.4 63.0 78.2

P/E ratio 13.2 13.9 13.2 12.7 12.3 11.7 11.4 11.6 11.4 11.3 11.7 10.5

P/BV ratio 1.7 1.8 1.8 1.7 1.7 1.4 1.4 1.4 1.4 1.4 1.4 1.3

Dividend yield (%) 2.1 2.1 2.6 2.9 3.6 2.8 3.9 4.2 4.3 4.3 4.3 4.7



0.6 2.2 −0.6 0.5 −2.6 −5.4 −0.6 2.2 3.5 0.0 −3.1 0.9


Tunisia 1998: (Currency in Millions) 429

Exchange Rates


1.1500 1.1566 1.1801 1.1539 1.1525 1.1616 1.1485 1.1439 1.0939 1.0780 1.1123 1.0964

Notes: The base date for the BVM General Index is Sept. 30, 1990=100. The base date for the IFCG Tunisia Index is Dec. 1995=100.In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Tunis Stock ExchangeMr. Ahmed Hadouej, Chairman19 bis, rue Kamel AttaturkCentre Babel − Bloc E − Zone MontplaisirTunis, 1002TunisiaTel: (216−1) 780−288Fax: (216−1) 789−189

IFC Correspondent:Tunisie Valeurs78, Av. Mohamed VTunis, 1002TunisiaTel: (216−1) 799−676Fax: (216−1) 789−355Email: [email protected]

Tunisia 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Tunis Stock Exchange − 13 15 17 19 21 26 30 34 38


In dinars 577.0 445.0 611.0 777.0 1,000.0 2,525.0 3,809.0 4,251.0 2,655.5 2,487.0

In US dollars 637.9 532.6 711.5 813.6 956.0 2,560.9 3,926.8 4,263.4 2,320.6 2,268.3

Trading Value

In dinars 30.0 17.0 28.0 29.0 46.0 300.0 627.0 273.5 287.0 213.9

In US dollars 31.6 19.4 30.3 32.8 45.8 296.4 662.9 280.6 285.0 188.5

Turnover ratio (%) 5.3 3.3 5.3 4.2 5.2 17.0 19.8 6.8 8.3 0.9

Local Index

BVM General* − 127.8 170.6 199.4 251.0 507.2 534.7 570.6 455.6 464.6


Tunisia 1989−1998: (Currency in Millions; End of Period Levels) 430

Change in index (%) − − 33.5 16.9 25.9 102.1 5.4 6.7 −20.2 2.0

IFC Global Index

Number of stocks − − − − − − 11 11 13 13


− − − − − − 74.9 66.4 72.1 67.8

P/E ratio − − − − − − − 25.8 13.1 10.5

P/BV ratio − − − − − − − 3.1 1.7 1.3

Dividend yield (%) − − − − − − − 2.2 2.2 4.7



− − − − − − − −4.5 −46.1 −2.5

Economic Data


10,102 12,291 13,075 15,575 14,663 15,650 17,987 19,589 18,937 22,041


7.7 6.5 8.2 5.8 4.0 4.7 6.2 3.7 3.7 −


0.9046 0.8355 0.8588 0.9550 1.0460 0.9860 0.9700 0.9971 1.1443 1.0964


0.9493 0.8783 0.9246 0.8844 1.0037 1.0120 0.9458 0.9746 1.0069 1.1347

Notes: The base date for the BVM General Index is Sept. 30, 1990=100. The base date for the IFCG Tunisia Index isDec. 1995=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Turkey

Market Performance

Domestic political uncertainty, mixed economic signals, and declines in emerging markets worldwide weighedheavily on Turkish equities in 1998. The dollar−based IFCI Turkey Index lost 53% of its value with thelira−based Istanbul Stock Exchange Composite Index lost 24.7%.

Although the government's anti−inflation program helped lift the market in early 1998, investor sentiment turnedbearish on news that consumer prices rose almost 100% in 1997. The government's decision to raise lending ratesto protect the lira further depressed share prices, as investors moved funds to fixed−income vehicles. Risingtension along the Iraqi border added to the downward pressure. Plans to partially deregulate the petroleum andelectricity industries created some upward momentum in February, but the threat of a possible capital gains taxweighed heavily on investor sentiment, and the IFCI Turkey Index fell 11.4%. In the following month, a briefrecovery was wiped out by concerns that upcoming state asset sales would flood the market with shares and by


Turkey 431

fears that the coalition government would be forced to call early elections.

Stock market performance was mixed in the second quarter. Shares were initially boosted by a drop in interestrates and news that GNP growth had exceeded projections by reaching 8.0% in 1997. Shares slumped at the endof April, however, following Prime Minister Mesut Yilmaz's announcement that he had agreed to early electionsin March 1999. The international routing of markets prompted by the crisis in Asia left foreign investors runningfrom emerging markets in May. This, along with continuing domestic uncertainties, pushed Turkish share priceslower. The quarter ended on a positive note as a rally in regional markets and hopes for an Asian bailout packageimproved the investment climate.

Share prices held steady at the beginning of the third quarter as news of falling inflation was offset by concernsabout Russia and Asia, which kept foreign investors on the sidelines. The Russian equity free−fall had a severenegative impact on the Turkish market in August. Stocks on the Istanbul Stock Exchange plummeted, with theIFCI Index falling nearly 41% in dollar terms. Many portfolio managers carry Turkish and Russian equities in thesame basket of stocks, and the Russian turmoil prompted foreign investors to shift funds to developed markets.The slide continued through September, fueled by the worsening situation in neighboring Russia and confirmationthat the government would impose capital gains taxes in 1999.

Stocks slid through October amid tension between Turkey and Syria over Damascus's alleged support for Kurdishrebels. Poor inflation results for September also weighed on the market. Optimism in U.S. and European boursesand expectations of healthy earnings created upward pressure in November. Political unrest, however, kept stocksfrom staging a strong rally. Political uncertainties magnified in December, as one attempt after another to form aninterim government failed, causing significant losses on the market. This trend was reversed when analystsreleased favorable projections for banking sector earnings. This, along with signs that the country would finallyhave a government, helped move shares higher at year's end.break


Turkey 432


IFCI Turkey Index Correlation(5−year period ending 12/98)





Exchange Rate(lira per U.S. dollar)

Turkey 1998:(Currency in Millions)


Turkey 1998: (Currency in Millions) 433

Notes: The base date for the ISE National−100 Index, formerly known as the ISE Index, is Jan. 1986=1. The base date for theIFCG Turkey Index is Dec. 1986=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Istanbul Stock ExchangeMr. Osman Birsen, Chairman & CEOMr. Aril Seren, Senior Vice PresidentIstinyeIstanbul, 80860TurkeyTel: (90−212) 298−2100Fax: (90−212)298−2500http://www.ise.org

IFC Correspondent:TEB Ekonomi Arastirmalari A.S.Meclis−i Mebusan Cad, No. 141Findikli 80040Istanbul, TurkeyTel: (90−212)251−8910Fax: (90−212) 251−8912http://www.teb.com.trEmail:[email protected]

Turkey 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Istanbul StockExchange

50 110 134 145 152 176 205 229 257 277


In lira (1/1,000) 15,553.0 55,249.7 78,906.6 84,809.0 546,316.2836,117.81,264,9983,275,03812,653,30810,611,820

In U.S. dollars 6,783 19,065 15,703 9,931 37,496 21,605 20,772 30,020 61,090 33,646

Trading Value

In lira (1/1,000) 1,668.6 15,028.2 35,487.1 55,855.5 255,223.2650,864.12,374,0853,025,9869,038,528 18,029,966

In U.S. dollars 798 5,841 8,571 8,191 23,242 21,692 51,392 36,831 59,105 68,646

Turnover ratio (%) 19.0 42.4 52.9 68.3 80.9 94.2 226.0 133.3 113.5 155.0

Local Index

National−100* 22.2 32.6 43.7 40.0 206.8 272.6 400.2 975.9 3,451.0 2,597.9

Change in index (%) 493.1 46.8 34.0 −8.5 417.0 31.8 46.8 143.9 253.6 −24.7


Turkey 1989−1998: (Currency in Millions; End of Period Levels) 434

http://www.ise.org

http://www.teb.com.tr

IFC Global Index

Number of stocks 18 25 25 25 36 40 44 58 58 58


67.9 23.2 52.7 39.0 63.3 69.9 66.3 74.2 79.1 76.5

P/E ratio 16.5 13.2 13.7 6.9 36.3 31.0 8.4 10.7 20.1 7.8

P/BV ratio 6.7 4.0 2.3 1.3 7.2 6.3 2.7 4.0 6.8 2.7

Dividend yield (%) 3.6 5.5 4.4 8.1 2.4 3.6 4.4 3.3 1.6 4.3

Total return index* 849.0 825.3 480.5 227.0 759.0 449.7 402.1 599.0 1,300.2 628.1

Change in index (%) 502.4 −2.8 −41.8 −52.8 234.4 −40.8 −10.6 49.0 117.1 −51.7

Economic Data


107,142 150,659 151,042 159,105 180,422 130,655 169,319 181,465 189,878 −


63.3 60.3 66.0 70.1 66.1 106.3 88.1 80.3 85.7 −


2,293.00 2,898.00 5,025.00 8,540.00 14,570.0038,700.0 60,900.0 109,095.0207,125.0 315,400.0


2,090.26 2,572.77 4,140.47 6,819.38 10,981.0430,005.4 46,195.8 82,159.4 152,922.5 262,461.3

Notes: The base date for the ISE National−100 Index, formerly known as the ISE Index, is Jan. 1986=1. The base date for the IFCGTurkey Index is Dec. 1986=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Ukraine

Market Performance

For the Ukrainian stock market, 1998 was a year of severe shocks. The index of the PFTS trading systemregistered a loss of 73.7% for the year in local currency terms, while the IFCG Ukraine Index (launched in 1998)plunged by 82.3% in dollar terms. Ukraine's depressed economic situation, high yields on the local debt market,and weak currency weighed hard on equity market sentiment.

As the Asian crisis prompted an outflow of funds from more risky emerging markets, foreigners started pullingout of Ukraine's domestic Treasury bill market, causing strong pressure on the hryvna. In response, the NationalBank switched to a new trading band of 1.80 to 2.25 HU to the dollar. The bank also sold DM 750 millionthree−year bonds to replace more costly short−term domestic debt and formulated an austerity program aimed atreducing the budget deficit from 3.3% of GDP to 2.5%, a main condition for disbursement of a $49 million IMFloan. In addition, the government announced an ambitious $1 billion privatization program. These measures failedto change market sentiment and the equities market experienced a sharp decline.


Ukraine 435

March parliamentary elections added political uncertainty to the mix while the country's budget deficit continuedto widen. The hryvna fell to record lows, pushing the boundaries of the newly established band. To replenishreserves spent on defending the currency, the government hurriedly issued euro−denominated bonds while thenational bank bought government debt amid a lack of demand from investors. The parliamentary electionsstrengthened the Communist Party's hold as it received 26% of the vote. In the past, the party consistentlyopposed President Leonid Kuchma's efforts to accelerate sales of state−owned enterprises and to implement othereconomic reforms. The auctions to sell several power distribution companies and oil refineries failed as highprices, insufficient local funds, and low foreign investor interest contributed to a lack of buyers.

In the second quarter, the equity market continued to decline as yields on T−bills soared above 60% from about55% in May and the National Bank raised the discount rate to 82% from 51%. In July, the government faceddifficulties with debt repayments, which amounted to almost half of its foreign reserves. It was actively seekingmore than $2 billion in loans from the IMF to shore up the reserves, which dwindled by $1.2 billion from the startof the year. The government also announced that it would sell more than 25% of telecommunications companyUkrtelecom before the end of the year.

During the summer, several Ukrainian companies launched GDR programs. However, the issues failed to make asignificant impact on the domestic equity market, which was suffering from the adverse macroeconomic situationin the country. Even though Ukraine made all due foreign debt payments and secured IMF funds, the Russiancrash in August dealt the Ukrainian stock market another blow. The market plummeted to historic lows and wasalmost totally paralyzed for two months. September monthly value traded declined by 73% to $1.8 million.Pressure on the currency forced the National Bank to widen the trading band for the hryvna from 2.5 to 3.5 perdollar. Notwithstanding, the local stock market remained depressed throughout the end of the year.break


Ukraine 436


IFCG Ukraine Index Correlation(12−month period ending 12/98)





Exchange Rate(hryvna per U.S. dollar)

Ukraine 1998:(Currency in Millions)



PFTS (OTC TradingSystem)

151 151 157 164 161 155 153 154 155 146 146 125


In hyrvna 5,644.9 5,299.5 5,534.2 5,305.3 4,122.5 2,686.1 3,455.0 1,932.4 1,686.7 1,343.3 2,198.9 1,954.8

In US dollars 2,925.6 2,630.2 2,715.1 2,597.5 2,003.9 1,300.9 1,618.3 858.8 495.4 392.0 641.6 570.4

Trading Value

In hyrvna 10.0 13.8 17.9 28.8 26.1 13.3 43.3 15.5 6.3 4.9 11.3 17.7

In US dollars 5.2 6.9 8.8 14.1 12.7 6.5 20.3 6.9 1.8 1.4 3.3 5.2


Ukraine 1998: (Currency in Millions) 437

Turnover ratio (%) 0.2 0.3 0.3 0.5 0.5 0.4 1.4 0.6 0.3 0.3 0.6 0.8

Local Index

PFTS* 67.1 61.0 63.0 52.7 43.3 34.6 39.3 26.3 22.4 17.3 21.1 21.0

Change in index (%) −9.0 −9.0 3.2 −16.4 −17.8 −20.0 13.5 −33.2 −14.7 −22.9 22.1 2.2

IFC Global Index

Number of stocks 17 17 17 17 17 17 17 17 17 17 16 16


− − − − − − − − − − − −


91.9 93.2 84.0 61.6 77.6 75.0 52.8 81.8 31.4 32.7 48.8 51.0

P/E ratio 2.4 2.1 2.5 2.1 1.8 3.3 1.6 1.3 1.2 1.1 1.2 1.2

P/BV ratio 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1

Dividend yield (%) − − − − − − − − − − − −



−17.6 −13.4 3.3 −11.3 −17.4 −25.1 −1.6 −21.4 −39.9 −7.8 0.9 1.4

Exchange Rates


1.9295 2.0149 2.0383 2.0425 2.0573 2.0647 2.1349 2.2500 3.4050 3.4270 3.4270 3.4270

Notes: The base date for the PFTS Index is Oct. 1, 1997=100. The base date for the IFCG Ukraine Index is Dec. 1997=100. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

OTC Stock Trading SystemMs. Irina Zarya, PresidentMr. Vitaly Kozakov, Executive Director5th floor, 31 Schchorsa St.Kiev 252133, UkraineTel: (380−44) 252−8800Fax: (380−44) 252−8553http://www.pfts.comEmail: [email protected]

IFC Correspondent:Finance and Credit InvestmentsMr. Sergey Grachov, Director30/1 Hrushevskogo St., Room 321Kiev, 252021UkraineTel: (380 44) 253−8289http://www.fci.com.uaEmail: [email protected]


Ukraine 1998: (Currency in Millions) 438

http://www.pfts.com

http://www.fci.com.ua

Ukraine 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


PFTS (OTC TradingSystem)

− − − − − − − − − 125


In hryvna − − − − − − − − 6,952.2 1,954.8

In US dollars − − − − − − − − 3,666.8 570.4

Trading Value

In hryvna − − − − − − − − − 208.8

In US dollars − − − − − − − − − 84.1

Turnover ratio (%) − − − − − − − − − 4.7

Local Index

PFTS* − − − − − − − − 79.7 21.0

Change in index (%) − − − − − − − − − −73.7

IFC Global Index

Number of stocks − − − − − − − − 17 16

Share of market cap. (%)* − − − − − − − − − 96.1

P/E ratio − − − − − − − − 4.6 1.2

P/BV ratio − − − − − − − − 0.6 0.1

Dividend yield (%) − − − − − − − − − 0.0



− − − − − − − − − −82.2

Economic Data


Ukraine 1989−1998: (Currency in Millions; End of Period Levels) 439


77,868 91,311 81,359 91,505 71,285 92,598 85,853 44,558 49,677 −


− − − − − − − − − −


− − − − − − − − 1.8960 3.4270


− − − − − − − − − 2.4838

Notes: The base date for the PFTS Index is Oct. 1, 1997=100. The base date for the IFCG Ukraine Index is Dec.1997=100. In calculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

Venezuela

Market Performance

Low commodity prices and the general emerging market maelstrom dropped Venezuelan shares totwo−and−half−year lows in 1998. Rockbottom oil prices and pre−election jitters vitiated demand for Venezuelanassets, sending the local market index tumbling 44.7% in bolivars. The government's decision to defend thebolivar's crawling exchange rate peg limited the falls of the IFCI and IFCG Venezuela indexes to 50.5% and51.8%, respectively, in dollar terms.

Investors wiped 49.9% off the IFCI Index in the first half of 1998 as oil prices sank, and polls indicated thatformer coup leader and left−leaning populist Hugo Chavez was the favorite to win December's presidentialelection. Because Venezuela depends on oil sales for 40% of its public sector revenues and 80% of its exports,investors worried that lower oil prices would force the government to rein in spending, thereby arrestingeconomic growth. The price of Venezuelan export crude fell to $13 per barrel in January, down 36% from itsJanuary 1997 price of $20.36 per barrel, sending the market falling 17% for the first month of the year.

The IFCI Venezuela Index plunged 22.8% in April as 28−day certificates of deposit rose to 37%, their highestlevel in two years, on continued doubts regarding the stability of emerging markets. Stock prices tumbled yetagain in June, with the dollar−based IFCI Index falling by 23.8% when the price of Venezuelan export crude hitits lowest level of the year, $9.72 per barrel. In the same month, the central bank pared back its economic growthforecast from 6% to 1% for the year.


Venezuela 440

The market touched bottom in August when the Russian ruble devaluation unleashed another round of contagionturmoil, this time in Latin America. Stock prices spiraled 40.6% downward as sky−high interest rates anddepressed oil prices diminished any remaining prospects of economic growth. Interest rates on benchmark 55−daygovernment bonds soared to 60% and oil prices remained below $10 per barrel as year−to−date stock marketlosses reached 70% by the end of August.

Equity prices rallied in the final months of 1998, gaining 66.0% over their August level. The IFCI Indexrebounded 34.2% in September as the government announced $540 million in deficit−reduction measures, andVenezuelan crude prices jumped 6%. After mixed results in October and November, the market extended itsfourth−quarter comeback in December, soaring 22.1% in dollars as investors factored in market−friendly remarksfrom Chavez, the winner of the December 6 election. That market had been concerned that a victory by Chavezwould herald a rollback of privatization and free−market reforms.

Chavez backtracked on earlier statements that he would place a moratorium on foreign debt, nationalizeindustries, and devalue the bolivar. In a bid to shore up confidence, the president−elect suggested that he wouldreduce crude output in accordance with OPEC targets as well as tackle the gaping fiscal deficit by laying off civilservants and clamping down on tax evasion. The new tone sent the market in a frenzy, with the local indexroaring ahead 22% and 19% in two straight trading sessions. The market retrenched throughout the remainder ofthe year, as there was no end in sight to the deepening recession in Latin America and the continued weakness ofthe petroleum market.break


IFCI Venezuela Index Correlation(5−year period ending 12/98)



Venezuela 441




Exchange Rate(bolivars per U.S. dollar)

Venezuela 1998:(Currency in Millions)



Bolsa de Valoresde Caracas

91 91 91 93 93 93 93 93 93 93 93 94


In bolivars 6,127,0006,002,2856,256,3985,211,8455,338,1524,509,4844,418,4973,177,0283,472,1643,444,9613,661,2434,282,937

In U.S.dollars

11,998 11,610 11,921 9,720 9,913 8,158 7,850 5,459 6,056 6,070 6,398 7,587

Trading Value

In bolivars 122,235 89,129 108,359 117,116 72,939 48,268 56,432 54,599 40,562 20,248 41,538 56,192

In U.S.dollars

239 172 206 218 135 87 100 94 71 36 73 100

Turnoverratio (%)

1.8 1.5 1.8 2.0 1.4 1.0 1.3 1.4 1.2 0.6 1.2 1.4

Local Index

Indice deCapitalizacion*

7,332.8 7,175.6 7,685.8 6,104.3 6,179.5 4,802.6 4,846.4 2,904.0 3,893.9 3,631.2 3,944.0 4,788.7

Change inindex (%)

−15.3 −2.1 7.1 −20.6 1.2 −22.3 0.9 −40.1 34.1 −6.8 8.6 21.4

IFC GlobalIndex

Number of stocks 19 19 19 19 19 19 19 19 19 19 19 19

Share ofmarket cap.

68.0 67.9 68.3 64.7 64.7 62.7 63.5 53.8 65.5 60.8 63.5 65.2


Venezuela 1998: (Currency in Millions) 442

(%)*


83.6 83.5 89.6 55.6 61.1 83.2 92.8 56.4 65.2 83.5 92.0 90.7

P/E ratio 10.4 9.6 9.8 6.8 6.8 5.5 5.4 3.8 5.1 4.6 4.9 5.6

P/BV ratio 1.0 0.9 0.9 0.7 0.7 0.6 0.6 0.3 0.5 0.4 0.4 0.5

Dividendyield (%)

1.5 1.4 1.4 2.4 2.3 2.6 2.9 6.0 5.9 6.6 5.5 4.5

Total returnindex*

633.1 612.6 627.1 485.9 499.7 385.4 381.3 230.2 313.6 294.3 316.8 385.4


−16.8 −3.2 2.4 −22.5 2.8 −22.9 −1.1 −39.6 36.2 −6.2 7.6 21.6

Exchange Rates


510.680 517.000 524.800 536.225 538.500 552.755 562.855 582.005 573.375 567.575 572.250 564.505

Notes:The base date of the Indice de Capitalizacion de la BVC is Dec. 1993=1,000. The base date for the IFCG Venezuela Index is Dec. 1984=100. In calculating share of total market cap, IFCG market

cap is not adjusted for cross holdings.

Caracas Stock ExchangeMr. Alejandro Salcedo Thielen, Chairman

Calle Sorocaima Entre Tamanaco y VenezuelaAtrium, Piso 1, El RosalCaracas, 1060−AVenezuelaTel: (58−2) 905−5511Fax: (58−2) 952−2640http://www.caracasstock.com

Venezuelan Electronic Stock ExchangeJose Vicente Urdaneta, President

Avenida Principal de Los RuicesCentro Empresarial Autana, Piso 2, Oficina 2−ACaracasVenezuelaTel: (58−2) 239−8433Fax: (58−2) 237−7949http://www.venezuelastock.com

IFC Correspondent:Merinvest

Av. Andres Bello No. 1Torre Mercantil Piso 23Caracas, 1010VenezuelaTel: (58−2) 503−2752Fax: (58−2) 575−0783

Venezuela 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Bolsa de Valores deCaracas

74 76 87 91 93 90 90 87 91 94


Venezuela 1989−1998: (Currency in Millions; End of Period Levels) 443

http://www.caracasstock.com

http://www.venezuelastock.com


In bolivars 64,051 415,893 681,838 593,993 836,679 698,320 1,241,0614,788,7487,352,9894,282,937

In U.S. dollars 1,472 8,361 11,214 7,600 8,010 4,111 3,655 10,055 14,581 7,587

Trading Value

In bolivars 3,575 103,236 181,688 177,648 169,168 139,932 94,655 592,159 1,884,114827,617

In U.S. dollars 93 2,232 3,240 2,631 1,874 936 510 1,275 3,858 1,510

Turnover ratio (%) 5.4 43.0 33.1 27.8 23.6 18.2 9.8 19.6 31.0 14.2

Local Index

Indice deCapitalizacion*

2,754.0 17,881.9 29,316.6 19,874.1 // 1,000.0 1,348.8 2,019.4 6,690.1 8,656.0 4,788.7

Change in index (%) −28.8 549.3 63.9 −32.2 − 34.9 49.7 231.3 29.4 −44.7

IFC Global Index

Number of stocks 13 16 17 17 17 17 16 18 19 19


53.0 64.6 77.1 65.8 60.4 81.6 67.9 74.6 66.9 65.2

P/E ratio 4.1 26.0 28.5 15.6 17.4 18.1 12.0 32.5 12.8 5.6

P/BV ratio 0.8 3.4 3.6 1.6 1.8 1.8 1.6 3.3 1.2 0.5

Dividend yield (%) 2.2 0.7 0.5 1.0 2.3 2.5 2.6 1.3 1.2 4.5


Change in index (%) −33.1 601.8 44.6 −42.3 −6.9 −25.7 −29.5 138.6 24.8 −49.3

Economic Data


43,551 48,593 53,453 60,765 60,049 58,403 77,261 70,292 87,480 −


84.5 40.7 34.2 31.4 38.1 60.8 59.9 99.9 50.0 −


43.5000 49.7400 60.8000 78.1600 104.4600 169.8700 339.5406 476.2550 504.3000 564.5050


38.5919 46.2453 56.0683 67.5143 90.2763 149.5574 185.6402 464.5281 488.4015 547.9683


Venezuela 1989−1998: (Currency in Millions; End of Period Levels) 444

Notes: IFC switched to the Indice de Capitalizacion in January 1995. The index's base date is Dec. 1993=1,000. The base date for theIFCG Venezuela Index is Dec. 1984=100. Since Nov. 29, 1995, the exchange rate applied was the implicit rate derived fromVenezuelan Brady Bond trading. Following the implementation of a new foreign exchange regime on April 22, 1996, when thegovernment allowed the bolivar (fixed at 85.290 per US$) to float, the exchange rate applied is the central bank market rate. Marketcap and trading value data does not include the Venezuelan Electronic Stock Exchange, which opened in mid−1995. In calculatingshare of total market cap, IFCG market cap is not adjusted for cross holdings.

Zimbabwe

Market Performance

For the second year in a row, shares on the Zimbabwe Stock Exchange (ZSE) fell sharply in 1998. High interestrates, social unrest, and a Zimbabwe dollar depreciation of more than 50% sharply diminished enthusiasm forwhat was once considered one of the most promising markets in the African region. For the year, the dollar−basedIFCI and IFCG indexes fell 58.1% and 59.2%, respectively, while the local ZSE Industrial Index shed 11% inlocal currency. A drop in bullion prices slashed 18% off the Zimbabwe Mining Index.

Shares began the year on a positive note as much−needed rains, the IMF's conditional promise of $176 million inaid, and the World Bank's decision to release $60 million in funds to prevent a balance−of−payments crisis liftedinvestor sentiments. By the end of the first quarter, however, fears of a fuel hike and uncertainty over thegovernment's proposed land reforms drew investors slowly away from the market.

The market's decline truly became apparent early in the second quarter as the Zimbabwe equity market stumbledsharply amid banking sector worries and continued high interest rates. In June, shares were given a temporaryreprieve with the IMF's announcement of a $176 million standby credit to support Zimbabwe's effort towardmarket reforms, in which the market quickly reacted with a strong upward surge. However, tough monetary andfiscal targets set by the IMF, combined with the growing international fear of investing in emerging markets,brought the market back down to its previous index levels by the end of the month.

By the third quarter, rumors of low foreign exchange reserves were confirmed when the government left thedollar unprotected from speculation. While the declining currency made exports and imports more competitivewith those from South Africa, the government's lack of intervention hurt the finance and business sectors, helpingto drive the equity market down. The economy received even worse news in August when the IMF suspended itsexpected $176 million loan. The money was withheld after the government reapplied price controls on foodstaples. While the actual contribution from the IMF was not expected to be anything more than a fraction of whatthe economy needed as a financial boost, the suspension only helped to further deteriorate the severe lack ofinvestor faith in the Zimbabwe economy.


Zimbabwe 445

Despite the turmoil that rocked the local market early in the year, heavy rains as well as lower rates in domesticmoney markets helped give the local Zimbabwe equity market a year−end boost. Zimbabwe shares finishedDecember on a bullish note despite the traditional lull during the holiday month and a 10.8% point jump in theinflation rate.break


IFCI Zimbabwe Index Correlation(5−year period ending 12/98)





Exchange Rate(Z dollars per U.S. dollar)

Zimbabwe 1998:(Currency in Millions)


Zimbabwe 1998: (Currency in Millions) 446



Zimbabwe StockExchange

64 64 64 65 65 66 66 67 67 67 67 67


In Zimbabwe dollars42,825 44,757 45,806 45,328 43,475 43,795 37,980 37,373 45,767 47,169 47,169 48,770

In U.S. dollars 2,519 2,763 2,836 2,651 2,422 2,432 1,935 1,359 1,408 1,318 1,270 1,310

Trading Value

In Zimbabwe dollars292 335 219 379 805 230 270 253 309 185 355 299

In U.S. dollars 17 21 14 22 45 13 14 9 10 5 10 8

Turnover ratio (%) 0.7 0.8 0.5 0.8 1.8 0.5 0.7 0.7 0.7 0.4 0.8 0.6

Local Index

ZSE Industrial* 7,895.7 7,879.5 8,795.7 7,724.7 7,307.2 7,417.9 7,003.1 5,577.7 5,789.8 5,832.5 5,883.7 6,408.4

Change in index (%)9.7 −0.2 11.6 −12.2 −5.4 1.5 −5.6 −20.3 3.8 0.7 0.9 8.9

IFC Global Index

Number of stocks 22 22 22 22 22 22 22 22 22 22 24 24


67.1 63.6 69.5 61.0 59.5 60.3 65.4 54.4 44.2 43.7 52.0 54


91.1 74.6 66.4 85.0 95.1 76.9 68.1 51.8 71.5 55.5 86.0 76.0

P/E ratio 10.3 10.2 11.4 10.0 9.3 10.3 9.7 8.1 8.4 8.5 6.2 5.8

P/BV ratio 1.7 1.7 1.8 1.6 1.4 1.4 1.4 1.1 1.1 1.2 1.2 1.3

Dividend yield (%) 2.5 2.6 2.4 2.6 2.8 3.8 4.3 5.1 5.0 4.8 3.1 2.8

Total return index* 1,249.4 1,296.6 1,430.2 1,177.1 1,038.7 1,080.6 940.8 558.4 470.5 433.9 424.7 460.4


14.4 3.8 10.3 −17.7 −11.8 4.0 −12.9 −40.6 −15.7 −7.8 −2.1 8.4


Zimbabwe 1998: (Currency in Millions) 447

Exchange Rates


17.0000 16.2000 16.1500 17.1000 17.9500 18.0100 19.6250 27.5000 32.5000 35.8000 37.1500 37.2150

Notes: The base date for the ZSE Industrial Index is 1967=100. The base date for the IFCG Zimbabwe Index is Dec. 1984=100. Listedcompany and market capitalization figures do not include foreign−based shares that are cross−listed. In calculating share of total marketcap, IFCG market cap is not adjusted for cross holdings.

Zimbabwe Stock ExchangeMr. A. Barfoot, Chief Executive OfficerP.O. Box 234 UA5th Floor, Southampton HouseUnion AvenueHarareZimbabweTel: (263−4) 736−861, 796−255Fax: (263−4) 791−045

IFC Correspondent:Sagit Stockbrokers (Pvt.) Ltd.20th Floor, Karigamombe Ctr.Samora Machel AvenueP.O. Box 21HarareZimbabweTel: (263−4) 757−867, 757−869Fax: (263−4) 750−564

Zimbabwe 1989−1998:(Currency in Millions; End of Period Levels)

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


Zimbabwe StockExchange

54 57 60 62 62 64 64 64 64 67


In Zimbabwe dollars 2,396 6,373 7,020 3,440 9,937 15,292 18,988 39,337 36,322 48,770

In U.S. dollars 1,067 2,395 1,394 628 1,433 1,828 2,038 3,635 1,969 1,310

Trading Value

In Zimbabwe dollars 75 126 282 103 347 1,445 1,299 2,555 6,452 3,931

In U.S. dollars 36 51 77 20 53 176 150 255 532 166

Turnover ratio (%) 3.9 2.9 4.2 2.0 5.2 11.5 7.6 8.8 17.1 9.2


Zimbabwe 1989−1998: (Currency in Millions; End of Period Levels) 448

Local Index

ZSE Industrial* 869.1 2,282.6 1,953.6 865.6 2,325.3 3,160.8 3,972.6 8,786.3 7,196.4 6,408.4

Change in index (%) 57.3 162.6 −14.4 −55.7 168.6 35.9 25.7 121.2 −18.1 −10.9

IFC Global Index

Number of stocks 11 18 17 17 21 24 24 22 22 24


46.5 56.5 50.0 42.7 62.2 73.4 74.5 72.8 76.4 54.2

P/E ratio 4.4 8.3 7.0 2.0 8.8 10.1 7.3 12.9 10.3 5.8

P/BV ratio 0.9 1.5 1.0 0.3 0.9 1.2 1.3 2.4 1.7 1.3

Dividend yield (%) 9.8 4.0 5.8 6.1 3.6 4.6 5.2 2.8 2.9 2.8

Total return index* 1,028.9 2,005.8 956.1 384.8 938.0 1,203.2 1,403.8 2,338.8 1,092.4 460.4

Change in index (%) 40.8 94.9 −52.3 −59.8 143.8 28.3 16.7 66.6 −53.3 −57.9

Economic Data


8,286 8,784 8,642 6,752 6,564 6,891 7,134 8,545 8,906 −


12.9 17.4 23.3 42.1 27.6 22.3 22.6 21.4 18.7 −


2.2448 2.6609 5.0355 5.4816 6.9351 8.3650 9.3188 10.8225 18.4500 37.2150


2.1173 2.4481 3.6346 5.1112 6.5061 8.2064 8.6820 10.0159 12.1380 23.7301

Notes: The base date for the ZSE Industrial Index is 1967=100. The base date for the IFCG Zimbabwe Index is Dec.1984=100. Listed company and market capitalization figures do not include foreign−based shares that are cross−listed. Incalculating share of total market cap, IFCG market cap is not adjusted for cross holdings.

7—Other Equity Market Profiles

Other Markets 1998:(Currency in Millions; End of Period Levels)


7— Other Equity Market Profiles 449

Armenia 1995 1996 1997 1998 Azerbaijan 1995 1996 1997 1998

Number of Listed Companies Number of ListedCompanies

Yerevan Stock Exchange 1 10 59 82 Baku InterbankCurrency Exchange

− − − 2

Market Capitalization Market Capitalization

In dram 1,315.0 2,925.0 7,881.0 9,206.0 In manat − − − 12,000.0

In US dollars 3.0 7.0 16.0 18.0 In US dollars − − − 3.0

Trading Value Trading Value

In dram 460.0 17.0 488.0 399.0 In manat − − − 704.0

In US dollars 1.1 0.0 1.0 0.8 In US dollars − − − −

Turnover ratio 61.0 0.8 9.0 4.7 Turnover ratio − − − −

Local Index Local Index

− − − − 36.1 − − − − −

% change in index .− − − − % change in index − − − −

P/E ratio − − 34.1 − P/E ratio − − − −

P/BV ratio − − − − P/BV ratio − − − −

Dividend yield (%) − − − − Dividend yield (%) − − − 11.4

Economic Data Economic Data

Gross domestic product (US$) 2,886.9 1,594.8 1,627.7 − Gross domestic product(US$)

3,497.1 3,650.3 4,399.1 −


− − − − Change in consumerprice index (%)

− − − −


402.000 441.200 494.980 517.120 Exchange rate (end ofperiod)

− − − 3,890.00


403.000 415.580 483.684 514.880 Exchange rate (averageof period)

− − − −



Yerevan Stock ExchangeDr. Sedrak Sldrakian, President

22, Sarian St.YerevanArmeniaTel: (3742) 52−58−01Fax: (3742) 15−15−48

Baku Interbank Currency ExchangeFuad Akhundov, Board Chairman

Farkhad Amirbekov, General Manager57, Inglab Street370110 Baku, AzerbaijanTel: (99412) 906−516, 906−309Fax: (99412) 906−516http://www.az/bicex




Bahrain 1995 1996 1997 1998 Barbados 1995 1996 1997 1998


Bahrain Stock Exchange − − − 38 Securities Exchange ofBarbados

18 19 18 20


In dinars − − − 2,552.0 In Barbadian dollars 989.0 1,540.0 2,283.0 4,824.0

In US dollars − − − 6,770.0 In US dollars 494.0 770.0 1,141.0 2,412.0


In dinars − − − 217.0 In dollars 7.0 12.0 47.0 68.0

In US dollars − − − 576.5 In US dollars 3.3 6.2 23.3 34.0

Turnover ratio − − − − Turnover ratio 0.6 1.0 2.4 1.9


Bahrain Index (Composite) − − − 2,188.9 SEB Index (Jan. 1,1988=1,000)

1,297.6 1,257.9 1,893.4 2,794.4

% change in index − − − − % change in index −7.0 −3.1 50.5 47.6

P/E ratio − − − 9.8 P/E ratio 13.2 10.7 13.6 −

P/BV ratio − − − 1.3 P/BV ratio − − − −

Dividend yield (%) − − − 5.2 Dividend yield (%) 4.2 6.6 5.5 −

Economic Data



http://www.az/bicex

Economic Data


1,742.9 − − −


− −0.2 − − Change in consumerprice index (%)

1.9 2.4 7.7 −


− − − .3770 Exchange rate (end ofperiod)

2.0000 2.0000 2.0000 2.0000


− − − − Exchange rate (averageof period)

2.0000 2.0000 2.0000 2.0000

Bahrain Stock ExchangeP.O. Box 3203

ManamaBahrainTel: (0973) 210810Fax: (0973) 210149http://www.bahrainstock.com


Securities Exchange of BarbadosMr. Neville Smith, Chairman

Mrs.Virginia Mapp, General Manager5th Floor, Tom Adams Financial CentreChurch Village, St. Michael, BarbadosTel: (246) 436−9871, 436−9872Fax: (246) 429−8942http://www.cweek.com




Bolivia 1995 1996 1997 1998 Costa Rica 1995 1996 1997 1998


Bolsa Boliviana de Valores 7 10 11 14 Bolsa Nacional deValores

118 114 114 97


In bolivianos 479.0 589.0 1,844.0 3,222.0 In colones − 172,081.0 200,399.0 355,097.0

In US dollars 97.0 114.0 328.0 570.3 In US dollars − 781.0 820.0 1,308.0


In bolivianos 3.0 3.0 4.0 33.0 In colones 2,876.0 3,047.0 − −

In US dollars 0.6 0.6 0.6 5.9 In US dollars 16.0 14.6 − −



http://www.bahrainstock.com

http://www.cweek.com

Turnover ratio 1.0 0.6 0.3 1.3 Turnover ratio − 3.5 − −


− − − − − BNV Index (Jan.1995=100)

1,252.4 1,438.2 1,679.9 2,231.7

% change in index − − − − % change in index 25.2 14.8 16.8 32.8

P/E ratio − − − − P/E ratio − − − −


Dividend yield (%) − − − − Dividend yield (%) − − − −


Gross domestic product (US$) 6,715.6 7,529.6 7,976.8 8,557.6 Gross domestic product(US$)

9,027.4 9,024.8 9,520.5 10,252.2


10.2 12.4 4.7 − Change in consumerprice index (%)

23.2 17.5 13.2 −



195.370 220.310 244.290 271.420


4.8100 5.0700 5.6083 − Exchange rate (averageof period)

180.010 208.040 232.600 270.380

Bolivian Stock ExchangeFernando Campero Paz, CEO

C. Montevideo No. 140Edif. Zambrana P.B.La Paz, 12521, BoliviaTel: (591−2) 392−911 to 14, 350−935Fax: (591−2) 352−308http://www.bolsa−valores−bolivia.com

Email: info@bolsa−valores−bolivia.com

National Stock ExchangeRodrigo Arias Sánchez, Chairman

Roberto Venegas Renauld, General ManagerCalle Central, Av. #1San Jose, Costa RicaTel: (506) 256−1180Fax: (506) 255−9135http://www.bnv.co.cr






http://www.bolsa-valores-bolivia.com

http://www.bnv.co.cr

El Salvador 1995 1996 1997 1998 Fiji 1995 1996 1997 1998


El Salvador Stock Exchange − 49 59 80 Suva Stock Exchange 4 4 8 9


In colones − 3,959.0 4,370.0 12,618.0 In Fiji dollars 96.0 113.0 144.0 175.0

In US dollars − 452.0 499.0 1,435.0 In US dollars 67.0 82.0 93.0 88.0


In colones − 86.0 127.0 157.0 In Fiji dollars 0.0 0.0 2.0 8.0

In US dollars − 9.8 14.5 17.9 In US dollars 0.0 0.1 1.5 4.1

Turnover ratio − − 3.1 1.8 Turnover ratio 0.1 0.1 1.7 5.2


− − − − − − − − − −

% change in index − − − − % change in index − − − −

P/E ratio − 7.9 10.2 − P/E ratio − − − 26.8

P/BV ratio − − − − P/BV ratio − − 0.2 −

Dividend yield (%) − − − − Dividend yield (%) − − 6.1 4.5



1,952.8 2,120.7 2,100.9 −



2.2 3.1 3.4 −


− 8.7550 8.7550 8.7900 Exchange rate (end ofperiod)

1.4294 1.3839 1.5492 1.9861


− 8.7550 8.7550 8.7550 Exchange rate (averageof period)

1.4063 1.4033 1.4437 1.9846

El Salvador Stock Exchange Suva Stock Exchange



Dr. Guillermo Hidalgo−Quehl, President

Edificio La CentroamericanaAlameda Roosevelt No. 3107San Salvador, El SalvadorTel: (503) 298−4244Fax: (503) 223−2898http://www.bolsavalores.com.sv


Ms. Foana Tukana, Chairman

Level 2, Plaza One, Provident PlazaP.O. Box 11089Suva, FijiTel: (679) 304−130Fax: (965) 304−145http://www.suvastockex.com




Guatemala 1995 1996 1997 1998 Honduras 1995 1996 1997 1998


Bolsa de Valores Nacional 7 9 7 7 Bolsa Hondurena deValores

99 111 119 94


In quetzal 747.0 1,001.0 861.0 1,179.0 In lempira 3,501.0 − − 6,326.0

In US dollars 124.0 168.0 139.0 172.0 In US dollars 338.0 − − 458.0


In quetzal 26.0 22.0 9.0 101.0 In lempira 3.0 6.0 5.0 −

In US dollars 4.5 3.6 1.5 15.0 In US dollars 0.3 0.5 0.4 −

Turnover ratio − 2.5 0.9 9.9 Turnover ratio 0.1 0.3 − −


− − − − − − − − − −


P/E ratio − − 31.9 31.9 P/E ratio − − − −

P/BV ratio − − 2.1 2.1 P/BV ratio − − − −

Dividend yield (%) − − − − Dividend yield (%) − − − −




http://www.bolsavalores.com.sv

http://www.suvastockex.com


3,970.1 4,009.6 4,491.3 −



29.5 23.8 20.2 −



10.3428 12.8694 13.0942 13.8076



9.4710 11.7053 13.0035 13.7601

National Stock ExchangeIng. Rolando San Román, General Manager

Lic. Enrique Crespo, Sub General Manager7 avenida 5−10, Zona 4, Centro FinancieroTorre II, 2o. Nivel, GuatemalaTel: (502) 332−2301Fax: (502) 332−1722http://www.bbvnsa.com.gt


Honduras Stock ExchangeLic. Marco Tulio Lopez, General Manager

Barrio El Centro 3 Ave. 2 Calle1er Piso Local 103, San Pedro SulaHonduras, C.A.Tel: (504) 553−4410Fax: (504) 553−4480http://www.bhv.hn




India 1995 1996 1997 1998 India 1995 1996 1997 1998



Calcutta Stock Exchange3,315 3,199 − − Delhi StockExchange

3,415 3,839 3,884 3,880

Market Capitalization MarketCapitalization

In rupee 4,159,514.04,891,228.0− − In rupee 2,079,396.02,195,778.02,432,909.02,144,510.0

In US dollars 118,286.0 136,531.0 − − In US dollars 59,133.0 61,292.0 62,048.0 50,463.0


In rupee 64,996.0 124,298.0 − − In rupee 111,815.0 333,667.0 724,395.0 464,717.0


Turnover ratio 3.1 2.8 − − Turnover ratio 4.8 15.6 31.3 20.3



http://www.bbvnsa.com.gt

http://www.bhv.hn


CSE 75 Index − 414.7 − − DSE SensitiveIndex (1983=100)

703.6 689.5 775.2 669.5

% change inindex

− − − − % change in index −19.0 −2.0 12.4 −13.6

P/E ratio − − − − P/E ratio − − − −


Dividend yield(%)

− − − − Dividend yield (%) − − − −



334,429.2 359,718.3 381,566.2383,428.6 Gross domesticproduct (US$)

334,429.2 359,718.3 381,566.2 383,428.6

Change inconsumer priceindex (%)

10.2 9.0 7.2 − Change inconsumer priceindex (%)

10.2 9.0 7.2 −


35.1650 35.8250 39.2100 − Exchange rate (endof period)

35.1650 35.8250 39.2100 42.4963


32.4471 35.3656 36.3184 − Exchange rate(average of period)

32.4471 35.3656 36.3184 41.2705

Calcutta Stock Exchange AssociationMr. P.K. De, Secretary

7 Lyons RangeCalcutta, 700 001West BengalIndiaTel: (91−33) 220−6977, 220−9366Fax: (91−33) 20−2514

Delhi Stock Exchange AssociationMr. S.S. Sodhi, Executive Director

3 & 4/4B, Asaf Ali RoadNew Delhi 110002IndiaTel: (91−11) 337−9590Fax: (91−11) 337−9953Email: [email protected]





India 1995 1996 1997 1998 India 1995 1996 1997 1998



Madras Stock Exchange1,458 1,750 − − National StockExchange of India

378 535 1,464 1,268


In rupee 1,956,593.02,068,415.0− − In rupee 1,797,499.02,349,219.04,242,891.03,920,711.0



In rupee 102,159.0 16,602.0 − − In rupee 268,855.0 2,455,450.03,798,851.03,452,695.0

In US dollars 3,148.5 469.4 − − In US dollars 8,285.9 69,430.5 104,598.5 83,660.1

Turnover ratio 10.4 0.8 − − Turnover ratio − 118.4 115.3 84.6


MSE Index (1983=100) 3,114.3 3,070.2 − − NSE 50 (Nov.3,1995=1000)

908.5 889.1 1,079.4 884.3

% change inindex

−8.2 −1.4 − − % change in index 0.0 −2.1 21.4 −18.1

P/E ratio 15.9 − − − P/E ratio − − − 11.2

P/BV ratio − − − − P/BV ratio − 9.3 − 1.4

Dividend yield(%)

− − − − Dividend yield (%) − − − 6.0




334,429.2 359,718.3 381,566.2 383,428.6



10.2 9.0 7.2 −



35.1650 35.8250 39.2100 42.4963

32.4471 35.3656 36.3184 − 32.4471 35.3656 36.3184 41.2705





Madras Stock Exchange, Ltd.Mr. A. Rajaei Salmassi, Secretary General

No. 11, Second Line BeachMadras 600 004Tamilnadu StateIndiaTel: (91−44) 522−1071Fax: (91−44) 524−4897

National Stock Exchange of India, Ltd.Dr. R.H. Patil, Managing Director

Mahindra Towers, First Floor, A−WingMumbai, 400 018, IndiaMaharashtra, IndiaTel: (91−22) 493−8009Fax: (91−22) 493−5631http://www.nse.co.in




India 1995 1996 1997 1998 Iran 1995 1996 1997 1998



OTC Exchange of India 79 106 115 − Tehran StockExchange

169 220 263 242


In rupee 5,836.0 3,394.0 61,744.0 − In rial 11,465,811.029,750,211.026,529,238.026,043,453.0

In US dollars 166.0 95.0 1,575.0 − In US dollars 6,552.0 17,024.0 15,123.0 14,874.0


In rupee 2,799.0 2,090.0 2,500.0 − In rial 1,296,572.0 4,573,631.0 2,124,290.0 2,430,714.0

In US dollars 86.3 59.1 68.8 − In US dollars 740.9 2,617.2 1,211.9 1,389.0

Turnover ratio − 45.3 7.7 − Turnover ratio 15.9 22.2 7.5 9.3


OTCEI CompositeIndex

161.7 88.9 111.2 − Tepix (Nov. 3,1990=100)

1,288.1 1,967.3 1,631.4 1,531.0



http://www.nse.co.in

% change inindex

0.0 −45.0 25.1 − % change in index 125.8 52.7 −17.1 −6.2

P/E ratio 8.4 5.0 4.5 − P/E ratio − 8.4 4.9 −

P/BV ratio 1.1 − − − P/BV ratio − − − −

Dividend yield(%)

2.0 − − − Dividend yield (%) − − − −




89,979.0 − − −



49.6 28.9 17.2 −



1,750.00 1,747.50 1,754.26 1,750.93


32.4471 35.3656 36.3184 − Exchange rate(average of period)

1,750.00 1,747.50 1,752.92 1,750.02

OTC Exchange of IndiaM. Pushpangadan, Managing Director

92 Maker Tower "F"Cuffe ParadeMumbaiIndia 400 005Tel: (91−22)218−8164,218−8165/8511Fax: (91−22) 218−8503

Tehran Stock ExchangeA. Amirasslani, Chairman

228, Hafez AvenueTehran, 11389IranTel: (98−21) 670−8385Fax: (98−21) 670−7888Email: [email protected]



Kazakhstan 1995 1996 1997 1998 Lebanon 1995 1996 1997 1998



Kazakhstan Stock Exchange− − − 18 Beirut StockExchange

3 − 9 12





In tenge − − − 142,150.0 In pounds 638,400.0 − 4,434,423.03,606,750.0

In US dollars − − − 37.0 In US dollars 400.0 − 2,904.0 2,385.0


In tenge − − − 2,401.0 In pounds − − 985,018.0 497,640.0

In US dollars − − − − In US dollars − − 639.8 328.2

Turnover ratio − − − − Turnover ratio − − − −


− − − − − − − − − −


P/E ratio − − − 2.9 P/E ratio − − 16.4 −

P/BV ratio − − − 0.7 P/BV ratio − − 2.5 −

Dividend yield (%) − − − − Dividend yield (%) − − 1.9 −



19,925.1 21,036.4 22,165.2 21,029.4 Gross domesticproduct (US$)

11,118.5 12,992.9 14,962.0 17,072.5



− − − −


− − − 3,890.00 Exchange rate (end ofperiod)

1,596.00 1,552.00 1,527.00 1,512.50


− − − − Exchange rate(average of period)

1,621.40 1,571.40 1,539.50 1,516.06

Kazakhstan Stock Exchange Inc.Azat G.Nukushev, President & CEO

67 Aiteke−biAlmaty 480091KazakhstanTel: (7 3272) 63 98 98Fax: (7 3272) 63 89 80http://kase.kazecon.kz


Beirut Stock ExchangeGabriel Sehnaovi, Director

Sadat Street, Dabaghi BuildingBeirutLebanonTel: (961−1) 786 501Fax: (961−1) 807 331http://www.bse.com.lb





http://kase.kazecon.kz

http://www.bse.com.lb


Macedonia 1995 1996 1997 1998 Malta 1995 1996 1997 1998


Macedonian Stock Exchange − − − 2 Malta Stock Exchange 5 6 6 7


In local currency − − − 437.0 In Maltese lira 437.0 170.0 720.0 297.0



In local currency − − − 5.0 In Maltese lira 46.0 5.0 8.0 21.0

In US dollars − − − 0.1 In US dollars 16.3 1.8 3.1 −

Turnover ratio − − − − Turnover ratio 16.0 1.6 1.8 4.1


− − − − − MSE Share Index − 990.3 1,057.4 1,287.6

% change in index − − − − % change in index − − 6.8 21.8

P/E ratio − − − − P/E ratio 11.9 9.7 − 28.0

P/BV ratio − − − − P/BV ratio 0.8 − − −

Dividend yield (%) − − − − Dividend yield (%) 4.3 3.2 4.5 3.6



3,245.1 3,354.9 3,323.0 −



− 2.5 3.1 −


− − − 51.8360 Exchange rate (end ofperiod)

2.8377 2.7760 2.5594 2.6442


− − − 51.7370 Exchange rate (averageof period)

2.8355 2.7745 2.5924 −



Macedonian Stock ExchangeEvgeni Zografski, CEO

Mito Hadzi Vasilev 2091000 SkopjeRepublic of MacedoniaTel: (389 91) 122−055Fax: (389 91) 122−069http://www.mse.org.mk


Malta Stock ExchangeMr. Paul J. Spiteri, CEO

Mr. Mark A Guillaumier, General Manager27 Pietro Floriani StreetFloriana Vlt 14MaltaTel: (356) 244051/5Fax: (356) [email protected]



Moldova 1995 1996 1997 1998 Mongolia 1995 1996 1997 1998


Moldovan Stock Exchange − − − 21 Mongolian StockExchange

461 449 434 430


In lei − − − 450.0 In tugrik 12,592.0 17,731.0 44,019.0 35,858.0



In lei − − − 437.0 In tugrik 851.0 4,157.0 12,165.0 10,755.0

In US dollars − − − − In US dollars 1.9 7.6 15.4 −

Turnover ratio − − − − Turnover ratio − 27.4 39.4 26.9


− − − − − Top−75 112.8 118.5 − −

% change in index − − − − % change in index − 5.1 − −

P/E ratio − − − − P/E ratio − − 2.1 6.8

P/BV ratio − − − − P/BV ratio − − 0.3 15.6

Dividend yield (%) − − − − Dividend yield (%) − − 9.7 20.5



http://www.mse.org.mk



956.7 971.6 862.5 −



− − − −


− − − 3,890.00 Exchange rate (end ofperiod)

473.620 693.510 813.160 902.000


− − − − Exchange rate (averageof period)

448.610 548.400 789.990 −

Moldovan Stock ExchangeDodu Corneliu, President

Stanciu Nadejda, Vice PresidentStefan cel Mare blvd. 73, Room 302Chisinau, MD2001Republic of MoldovaTel: (3732) 222−266Fax: 229−305, 226−351http://www.moldse.com

Mongolian Stock ExchangeEnkhbayar Ochirbal, CEO

Amarsanaa Nosgoi, Deputy DirectorSukhbaatar Square, 14Ulaanbaatar, MongoliaTel: (976−1) 310−501, 321−315Fax: (976−1) 325−170http://www.mse.com.mn




Namibia 1995 1996 1997 1998 Nepal 1995 1996 1997 1998


Nambian Stock Exchange 10 12 13 15 Nepal Stock Exchange83 90 98 104

Market Capitalization * Market Capitalization

In Namibia dollars 689.0 2,215.0 3,354.0 2,515.0 In rupee 13,681.0 11,849.0 12,650.0 18,093.0

In US dollars 189.0 473.0 689.0 429.0 In US dollars 244.0 207.0 200.0 267.0

Trading Value* Trading Value

In Nambia dollars 11.0 176.0 112.0 76.0 In rupee 915.0 287.0 277.0 302.0


Turnover ratio 1.6 12.1 4.0 2.6 Turnover ratio 6.9 2.3 2.3 2.0



http://www.moldse.com

http://www.mse.com.mn


NSE Index (Dec 1992=100) 86.4 150.6 164.2 106.0 NPSE Index 206.6 − 170.9 175.5

% change in index 0.0 74.3 9.0 −35.4 % change in index 5.8 − − 2.7

P/E ratio 11.0 23.8 14.2 − P/E ratio 23.2 10.2 8.5 7.9

P/BV ratio − − − − P/BV ratio 534.6 34.9 1.2 1.6

Dividend yield (%) 3.6 1.5 1.4 − Dividend yield (%) 3.6 5.6 6.2 3.8



4,392.3 4,509.3 4,928.6 −



7.6 9.2 4.0 −



56.0000 57.3000 63.3000 67.6750



51.8900 56.6920 58.0100 67.6750

* Figures do not include cross−listed South African companies.

Namibian Stock ExchangeMr. Tom Minney, General Manager

Shop #8, Kaiserkrone CentrePost Street Mall, P.O. Box 2401Windhoek, NamibiaTel: (264−61) 227−647Fax: (264−61) 248−531http://www.nse.com.na


Nepal Stock ExchangeMr. Madan Raj Joshi, General Manager

Mr. Murari Prasad Sharma, ManagerP.O. Box 1550 Singhadurbar PlazaKathmanduNepalTel: (977−1) 250735Fax: (977−1) 262538Email: [email protected]



Oman 1995 1996 1997 1998 Panama 1995 1996 1997 1998


Muscat Securities Market 80 94 114 131 Panama Stock 16 19 21 27



http://www.nse.com.na

Exchange


In Omani rials 762.0 1,028.0 2,737.0 1,691.0 In balboas 831.0 1,279.0 2,175.0 3,347.0

In US dollars 1,978.0 2,662.0 7,108.0 4,392.0 In US dollars 831.0 1,279.0 2,175.0 3,347.0


In Omani rials 81.0 210.0 1,496.0 748.0 In balboas 9.0 24.0 42.0 104.0

In US dollars 211.4 544.6 3,879.9 1,942.9 In US dollars 8.6 23.6 42.2 104.4



MSM Index (Jan. 1, 1992=100)158.1 199.4 480.6 228.5 BVP Indice General 222.4 277.6 445.4 661.8

% change in index 8.2 26.1 141.1 −52.5 % change in index 3.3 24.8 60.5 48.6

P/E ratio 9.7 12.7 25.5 6.8 P/E ratio 9.4 − 21.1 25.4

P/BV ratio 1.5 1.4 4.0 1.4 P/BV ratio 1.9 − 2.2 3.8

Dividend yield (%) 5.7 4.2 2.0 4.2 Dividend yield (%) 4.0 − 3.1 1.0


Gross domestic product (US$) 12,102.0 − − − Gross domestic product(US$)

7,906.1 8,243.6 − −



1.0 1.3 1.3 −



1.0000 1.0000 1.0000 1.0000



1.0000 1.0000 1.0000 1.0000

Muscat Securities MarketMr. Mahmood Al−Jarwani, Executive President

P.O. Box 3265 RuwiPostal Code 112MuscatOmanTel: (968) 7712607Fax: (968) 7716691http://www.msm−oman.com

Panama Stock ExchangePilar de Alemán, President

Felipe E. Chapman, General ManagerCalle 52 Edif. Vallarino, Planta BajaPanama City, PanamaTel: (507)264−1966Fax: (507) 269−2457http://www.panabolsa.com




http://www.msm-oman.com

http://www.panabolsa.com



Paraguay 1995 1996 1997 1 998 Swaziland 1995 1996 1997 1998


Asuncion Stock Exchange 30 60 60 55 Swaziland StockMarket

4 6 4 5


In guarani 287,000.0 813,830.0 953,369.0894,799.0 In lilangeni 1,235.0 2,204.0 630.0 500.0



In guarani 42,864.0 62,443.0 43,668.0 43,518.0 In lilangeni 1.0 10.0 1,739.0 1.0




PDV General (Oct. 11,1993=100)

127.4 217.8 261.3 270.1 SSM Index (Jul1990=100)

136.8 192.8 114.0 70.5

% change in index 20.8 70.9 20.0 3.4 % change in index 2.9 41.0 −40.9 −38.2

P/E ratio 13.6 12.2 − − P/E ratio 7.4 9.7 6.8 7.9

P/BV ratio − 1.4 − 1.9 P/BV ratio 1.3 1.8 1.0 0.9

Dividend yield (%) 12.8 11.5 − 8.7 Dividend yield (%) 5.7 5.2 9.1 9.8


Gross domestic product (US$)8,982.2 9,672.9 10,179.8 − Gross domestic product(US$)

1,267.4 1,227.6 1,313.3 −



14.7 12.5 9.7 −


1,988.00 2,125.00 2,450.00 2,865.00 Exchange rate (end ofperiod)

3.6488 4.6785 4.8676 5.8560




1,962.00 2,065.00 2,191.00 2,859.30 Exchange rate (averageof period)

3.6257 4.6839 4.6032 5.8900

Asuncion Stock ExchangeHugo Salinas, Predident

Estrella 540AsuncionParaguayTel: (595−21) 442 445, 450 103, 450 104Fax: (595−21) 442−446http://www.pdv.com.py/bolsa


Swaziland StockbrokersMr. Andrew McGuire, CEO

Suite 208, 2nd FloorDhlan Ubeka House, Walker StreetP.O. Box 2818Mbabane, SwazilandTel: (268) 4046163Fax: (268) 4044132Email: [email protected]



Uruguay 1995 1996 1997 1998 Uzbekistan 1995 1996 1997 1998


Montevideo Stock Exchange 20 18 16 19 Toshkent RepublicStock Exchange

− 4 − −


In nuevo pesos 1,300.0 2,320.0 2,133.0 2,261.0 In local currency − 7,025.0 37,272.0 −

In US dollars 183.0 266.0 212.0 209.0 In US dollars − 128.0 465.0 −


In nuevo pesos 31.0 32.0 32.0 47.0 In local currency − 2,815.0 2,338.0 −

In US dollars 4.8 4.0 3.3 4.5 In US dollars − 69.6 34.7 −

Turnover ratio 2.7 1.7 1.4 2.1 Turnover ratio − − 10.5 −


Indice de Precios (Dec. 31,1977=100)

860.3 − − − − − − − −

% change in index 35.4 − − − % change in index − − − −

P/E ratio − − − 14.5 P/E ratio − − − −



http://www.pdv.com.py/bolsa

P/ BV ratio − − − 0.0 P/BV ratio − − − −

Dividend yield (%) − − − 0.1 Dividend yield (%) − − − −



22,365.7 23,811.6 25,046.9 −



− − − −



− 54.7000 80.1700 −



− 40.4800 67.4350 −

Montevideo Stock ExchangeMr. Ignacio Rospide, President

Misiones 1400Montevideo CP 11000UruguayTel: (598−2) 916−5051Fax: (598−2) 916−1900http://www.bvm.com/uy


Toshkent Republic Stock Exchange8, Pravda Vostoka St.

700047 TashkentRepublic of UzbekistanTel: (7−3712) 36−07−40,36−05−36Fax: (7−3712) 33−32−31



West Bank and Gaza 1995 1996 1997 1998 Zambia 1995 1996 1997 1998


Palestine Securities Exchange− − 27 20 Lusaka Stock Exchange2 6 6 8


In Jordanian dinars − − 470.0 418.0 In kwacha 18,053.0 252,467.0 1,006,674.0642,579.0

In US dollars − − 662.0 589.0 In US dollars 19.0 195.0 705.0 293.0




http://www.bvm.com/uy

In Jordanian dinars − − 18.0 49.0 In kwacha 217.0 3,428.0 11,588.0 6,450.0

In US dollars − − 25.4 68.8 In US dollars 0.3 2.8 8.5 −

Turnover ratio − − − − Turnover ratio − 2.5 1.8 0.8


Al−Quds − − 139.1 155.0 LuSE Stock Index − − 210.7 161.5

% change in index − − − − % change in index − − − −23.4

P/E ratio − − − − P/E ratio 7.5 4.0 9.8 5.2

P/BV ratio − − − − P/BV ratio − 3.1 1.2 1.0

Dividend yield (%) − − − − Dividend yield (%) − 9.5 3.0 8.4


Gross domestic product (US$)− − − − Gross domestic product(US$)

3,497.7 3,297.7 3,865.5 −



34.2 46.3 24.8 −



950.000 1,297.00 1,427.50 2,194.00



820.000 1,228.00 1,362.25 −

Palestine Securities ExchangeMr. Sabeih Masri, Chairman

Dr. Sulieman Abaddi, General ManagerP.O. Box 128Nablus, PalestineTel: (972 9) 237−5946, 237−5947Fax: (972 9) 237−5945http://www.p−s−e.com


Lusaka Stock Exchange LtdMr. Charles Mate, General Manager

Mr. Bruce Bouchard, ChairmanCairo Road, P.O. Box 34523Lusaka, ZambiaTel: (260−1) 228−594, 228−537, 228−391Fax: (260−1) 225−969http://www.luse.co.zm


Appendix 1—Sources and Notes

Stock Market Reference List

IFC conducts an annual survey of the world's stock exchanges as the basis for the figures presented in thisFactbook. The information for 1998 in this Factbook is from the following stock exchanges:break


Appendix 1— Sources and Notes 470

http://www.p-s-e.com

http://www.luse.co.zm

Argentina Buenos Aires Stock Exchange

Armenia Yerevan Stock Exchange

Australia Australian Stock Exchange

Azerbaijan Baku Interbank Currency Exchange

Austria Vienna Stock Exchange

Bangladesh Dhaka Stock ExchangeChittagong Stock Exchange

Bahrain Bahrain Stock Exchange

Barbados Securities Exchange of Barbados

Belgium Brussels Stock Exchange

Bermuda Bermuda Stock Exchange

Bolivia Bolsa de Boliviana de Valores

Botswana Botswana Stock Exchange

Brazil Sao Paulo Stock ExchangeRio de Janeiro Stock Exchange

Bulgaria Bulgarian Stock Exchange − Sofia

Cayman Islands Cayman Islands Stock Exchange

Canada Toronto Stock ExchangeMontreal Stock ExchangeVancouver Stock Exchange

Chile Santiago Stock Exchange

China Shanghai Stock ExchangeShenzhen Stock Exchange

Colombia Bogota Stock ExchangeMedellin Stock ExchangeOccidente Stock Exchanges

Costa Rica Bolsa Nacional de Valores

Cote dlvoire Bourse Regionale des ValeursMobilieres

Croatia Zagreb Stock Exchange

Cyprus Cyprus Stock Exchange

Czech Republic Prague Stock Exchange

Denmark Copenhagen Stock Exchange

Dominican Republic Santo Domingo Securities Exchange

Ecuador Guayaquil Stock ExchangeQuito Stock Exchange

Egypt, Arab Rep.



Cairo Stock ExchangeAlexandria Stock Exchange

El Salvador Mercado de Valores de El Salvador

Estonia Tallinn Stock Exchange

Fiji Suva Stock Exchange

Finland Helsinki Stock Exchange

France Paris Stock Exchange

Germany Deutsche Bourse AG

Ghana Ghana Stock Exchange

Greece Athens Stock Exchange

Guatemala Bolsa de Valores Nacional

Honduras Bolsa Hondurena de Valores

Hong Kong Stock Exchange of Hong Kong

Hungary Budapest Stock Exchange

Iceland Iceland Stock Exchange

India Mumbai Stock ExchangeCalcutta, Delhi, Madras, Nationaland OTC Exchanges

Indonesia Jakarta Stock ExchangeSurabaya Stock Exchange

Iran, Islamic Republic Tehran Stock Exchange

Ireland Irish Stock Exchange

Israel Tel−Aviv Stock Exchange

Italy Italian Stock Exchange

Jamaica Jamaica Stock Exchange

Japan Tokyo Stock ExchangeOsaka Securities Exchange

Jordan Amman Financial Market

Kazakhstan Kazakhstan Stock Exchange

Kenya Nairobi Stock Exchange

Korea Korea Stock Exchange

Kuwait Kuwait Stock Exchange

Latvia Riga Stock Exchange

Lebanon Beirut Stock Exchange

Lithuania National Stock Exchange of Lithuania

Luxembourg Luxembourg Stock Exchange



Macedonia Macedonian Stock Exchange

Malaysia Kuala Lumpur Stock Exchange

Malta Malta Stock Exchange

Mauritius Stock Exchange of Mauritius

Mexico Mexican Stock Exchange

Moldova Moldovian Stock Exchange

Mongolia Mongolian Stock Exchange

Morocco Casablanca Stock Exchange

Namibia Namibian Stock Exchange

Nepal Nepal Stock Exchange

Netherlands Amsterdam Stock Exchange

New Zealand New Zealand Stock Exchange

Nigeria Nigerian Stock Exchange

Norway Oslo Stock Exchange

Oman Muscat Securities Market

Pakistan Karachi Stock ExchangeIslamabad Stock ExchangeLahore Stock Exchange

Panama Panama Stock Exchange

Paraguay Asuncion Stock Exchange

Peru Lima Stock Exchange

Philippines Philippine Stock Exchange

Poland Warsaw Stock Exchange

Portugal Lisbon Stock Exchange

Romania Bucharest Stock ExchangeRASDAQ OTC Trading System

Russia Russian Trading SystemMoscow Stock Exchange

Saudi Arabia Electronic Securities InformationSystem

Singapore Stock Exchange of Singapore

Slovakia Bratislava Stock Exchange

Slovenia Ljubljana Stock Exchange

South Africa Johannesburg Stock Exchange



Spain Madrid Stock ExchangeBarcelona, Bilbao, and ValenciaStock Exchanges

Sri Lanka Colombo Stock Exchange

Swaziland Swaziland Stock Market

Sweden Stockholm Stock Exchange

Switzerland Swiss Stock Exchange

Taiwan, China Taiwan Stock Exchange

Thailand Stock Exchange of Thailand

Trinidad & Tobago Trinidad & Tobago Stock Exchange

Tunisia Tunis Stock Exchange

Turkey Istanbul Stock Exchange

United Arab Emirates United Arab Emirates OTC Market

United Kingdom London Stock Exchange

Ukraine PFTS OTC Trading System

United States New York Stock ExchangeAmerican Stock ExchangeNASDAQ Stock Exchange

Uruguay Montevideo Stock Exchange

Venezuela Caracas Stock Exchange

West Bank and Gaza Palestine Securities Exchange

Yugoslavia Belgrade Stock Exchange

Zambia Lusaka Stock Exchange

Zimbabwe Zimbabwe Stock Exchange

Notes On Macroeconomic Data

Macroeconomic data in Chapter 1 is from the 1999 edition of the World Bank Atlas.

Data on net aggregate financial flows to developing countries in Chapter 1 was obtained from the 1999 edition ofGlobal Development Finance, World Bank.

Macroeconomic data in Chapters 6 and 7 comes from the Development Data Group at the World Bank.

For information on how to obtain copies of the publications cited in Chapter 1, write to:

World Bank Infoshop701 18th Street, NWWashington, DC 20433

Inquiries and orders can also be faxed to World Bank Publications at (202) 477−0604.break


Notes On Macroeconomic Data 474

Currency Notes

All IFC Index data variables are maintained in local currency terms. If a local currency unit changes in a currencyreform, IFC's custom is to restate the data in the new currency unit; if several currency reforms threaten toeliminate significant digits (as has been the case for Argentina and Brazil), IFC uses a currency factor to create aninternal currency conversion rate.

IFC also calculates index levels in U.S. dollar terms. As a rule, IFC uses spot exchange rates to the U.S. dollarwhich it believes represent mid−rates between those a foreign portfolio manager might reasonably expect toreceive when selling dollars (for stock purchases) and buying dollars (selling currency received from proceeds ofstock sales for repatriation), or for valuing a portfolio in U.S. dollar terms. In the absence of a legalmarket−determined rate, IFC uses the official rate.

IFC's multi−market indexes are prepared in U.S. dollar terms by converting constituent data into U.S. dollars andcalculating index levels as if all constituents are part of a single market. Calculation of the indexes in currenciesother than the U.S. dollar can be done by using a currency's cross−rate to the U.S. dollar.

IFC's procedure for converting local currency values to U.S. dollar values is to choose one source of exchangerates as its primary source, and to compare that source's rate to the U.S. dollar with at least two other sources toensure the primary source's figure has not been corrupted or is not moving out of line with comparators.Currencies are carried to four decimal places.

The sources cited below are those used by IFC at the dates shown. IFC began using the WM/Reuters exchangerate service as its principal source for closing rates in October 1994. The WM/Reuters closing spot rates arederived daily by the WM Company from the latest quotes available to Reuters at or near 4 p.m. London time.Each published rate is the median of a series of snapshots taken around this time. Commercial interbank bid andoffer quotes are used unless a different type of rate is deemed to be more appropriate for foreign investors. IFCreserves the right to substitute other sources of exchange rates if the WM/Reuters rates are not available or if inIFC's opinion the rates are not reflective of market circumstances.

Since October 1994:

The WM/Reuters Closing Spot Rates Service.

Prior to October 1994:

Argentina Central Bank selling rate at close

Brazil Commercial Banks' selling rate posted by Gazeta Mercantil

Chile Observado rate posted by the Bolsa de

Comercio de Santiago

China Shanghai Swap Center mid−rate for renminbi to U.S. dollars;Shenzhen Swap Center mid−rates for Hong Kong dollars torenminbi

Colombia Bank of America, World Value of the Dollar

Hungary National Bank of Hungary official buying rate for dollars at closeof business


Currency Notes 475

Korea Bank of America, World Value of the Dollar

Mexico Diario Oficial rate (average mid−rate posted by exchange houses)

Nigeria Central Bank mid−rate

Peru Closing mid−rate posted by the Bolsa de Valores de Lima

Poland Bank Rozwoju Eksportu Spolka Akcyjna buying rate for dollarsat close of business

South Africa Mid−rates for the financial rand

Sri Lanka Central Bank spot rate (mid−point) for dealings with commercialbanks

Zimbabwe Open market rate at close of business

The Wall Street Journal's foreign exchange tables were used for the followingcountries: Greece, India, Indonesia, Jordan, Malaysia, Pakistan, Philippines,Portugal, Taiwan (China), Thailand, Turkey, and Venezuela.

A number of emerging markets have made major currency reforms or changes of foreign exchange investmentregimes during the life of the IFC indexes. These changes are listed below.

ArgentinaJune 1, 1983: The peso Argentino replaces the peso, 1 peso Argentino for 10,000 pesos.June 14, 1985: The austral replaces the peso Argentino, 1 austral for 1,000 pesos Argentino.Jan. 1, 1992: The peso Argentine replaces the austral, 1 peso for 10,000 australes.

BrazilFeb. 28, 1986: The cruzado replaces the cruzeiro, at the rate of 1 cruzado for 1,000 cruzeiros.Jan. 15, 1989: The new cruzado replaces the cruzado, at the rate of 1 new cruzado for 1,000 cruzados.Mar. 16, 1990: The cruzeiro replaces the new cruzado, at a rate of 1 cruzeiro for each cruzado.Aug. 1, 1993: The cruzeiro real replaces the cruzeiro, at the rate of 1 cruzeiro real for 1,000 cruzeiros.July 1, 1994: The real replaces the cruzeiro, at a rate of 1 real or 2,750 cruzeiro.

MexicoJan. 1, 1993: The new peso replaces the peso, at a rate of 1 new peso for each 1,000 pesos.

NigeriaJan. 1994: The government banned the formerly legal parallel market for the naira (N44/US$1 at the time), whichIFC had been using and limited foreign exchange transactions to the official rate only (N22/US$1). The forcedswitch to the official rate boosted the IFCG Nigeria Index for a one−time US$ gain of nearly 100%.March 1995: IFC switched from using the official government exchange rate to the autonomous rate for purposesof calculating the IFCG Nigeria Index.

PeruFeb. 1, 1985: The inti replaces the sol, at a rate of 1 inti for each 1,000 sol.Jul. 1, 1991: The new sol (sol nuevo) replaces the inti, at a rate of 1 new sol for each 1,000,000 intis.

PolandJan. 1, 1995: The zloty is "revalued", with the new zloty equal to 10,000 old zlotys. The new currency retains thename zloty.


Currency Notes 476

VenezuelaIn June 1994, Venezuelan authorities fixed the exchange rate at Bs.170 per U.S. dollar. In June 1995, authoritiespermitted Venezuelan Brady bonds that trade abroad in dollars to be quoted also at the Caracas bolsa and pricingdifferences between the two markets creates an "implied" exchange rate. IFC began using the implied rate forindex calculation purposes in November 1995. On April 22, 1996, the Venezuelan government implemented anew foreign exchange system that allows the exchange rate to fluctuate within an official band, and IFC returnedto the official rate.

RussiaJan. 1, 1998: The ruble is "revalued", with the new ruble equal to 1,000 old rubles. The new currency retains thename ruble.break

Standard Industrial Classification (SIC) Codes

Versions of the U.S. Government SIC codes are commonly used to identify the business sectors in whichcompanies operate. IFC adapted the following list from the Standard and Poor's Register for use with the stocksin its Emerging Markets Data Base. Companies belong to a sector, which has a one−digit code, and an industry,which has a twodigit code. In some cases, IFC further identifies a sub−industry.

Sector 0—Agriculture, Forestry and Fishing

1 Agricultural production—crops

2 Agricultural production—livestock

7 Agricultural services

8 Forestry

9 Fishing, hunting and trapping

Sector 1—Mining

10 Metal mining

11 Anthracite mining

12 Bituminous coal and lignite mining

13 Oil and gas extraction

14 Mining and quarrying of non−metallic minerals, except fuels

Sector 2—Construction

15 Building construction—general contractors and operative builders

16 Construction other than building construction—general contractors


Standard Industrial Classification (SIC) Codes 477

17 Construction—special trade contractors

Sector 3—Manufacturing

20 Food and kindred products

21 Tobacco manufacture

22 Textile mill products

23 Apparel and other finished products made from fabrics and similar materials

24 Lumber and wood products, except furniture

25 Furniture and fixtures

26 Paper and allied products

27 Printing, publishing, and allied industries

28 Chemicals and allied products

29 Petroleum refining and related industries

30 Rubber and miscellaneous plastics products

31 Leather and leather products

32 Stone, clay, glass, and concrete products

33 Primary metal industries

34 Fabricated metal products, except machinery and transportation equipment

35 Machinery, except electrical

36 Electrical and electronic machinery, equipment and supplies

37 Transportation equipment

38 Measuring, analyzing and controlling instruments; photographic, medical and optical goods; watches andclocks

39 Miscellaneous manufacturing industries

Sector 4—Transportation, Communication, Electric, Gas and Sanitary Services

40 Railroad transportation


Sector 3— Manufacturing 478

41 Local and suburban transit and interurban highway passenger transportation

42 Motor freight transportation and warehousing

43 Postal Service

44 Water transportation

45 Transportation by air

46 Pipelines, except natural gas

47 Transportation services

48 Communication

49 Electric, gas, and sanitary services

Sector 5—Wholesale Trade and Retail Trade

50 Wholesale trade—durable goods

51 Wholesale trade—nondurable goods

52 Building materials, hardware, garden supply and mobile home dealers

53 General merchandise stores

54 Food stores

55 Automotive dealers and gasoline service stations

56 Apparel and accessory stores

57 Furniture, home furnishings and equipment stores

58 Eating and drinking places

59 Miscellaneous retail

Sector 6—Finance, Insurance and Real Estate

60 Banking

61 Credit agencies other than banks

62 Security and commodity brokers, dealers, exchanges and services

63 Insurance


Sector 5— Wholesale Trade and Retail Trade 479

64 Insurance agents, brokers, and service

65 Real estate

66 Combinations of real estate, insurance, loans, law offices

67 Holding and other investment companies

Sector 7—Services

70 Hotels, rooming houses, camps and other lodging places

72 Personal services

73 Business services

75 Automotive repair services and garages

76 Miscellaneous repair services

79 Amusement and recreation services, except motion pictures

78 Motion pictures

80 Health services

81 Legal services

82 Educational services

83 Social services

84 Museums, art galleries, botanical and zoological gardens

86 Membership organizations

88 Private households

89 Miscellaneous services

Sector 8—Government

91 Executive, legislative, and general government, except finance

Sector 9—Other

99 Nonclassifiable establishmentsbreak


Sector 7— Services 480

Appendix 2—Investor Information

Foreign Investment Ceiling for Listed Stocks in Emerging Markets:(Markets Covered by IFC Indexes, End−1998)

Markets

Latin America

Argentina 100% in general

Brazil 49% common stocks; 100% preferred stocks;0% for bank ordinary shares

Chile 100% in general

Colombia 100% in general

Ecuador 100% in general

Jamaica 100% in general

Mexico 100% in general

Peru 100% in general

Trinidad & Tobago 30% in general

Venezuela 100% in general

Asia

Bangladesh 100% in general

China 100% only for B− and H−class shares

India 24% in general, up to 30% with board ofdirectors approval

Indonesia 100% in general; 49% banks, 85% forsecurities companies

Korea 100% in general;

Korea 30% for KEPCO & POSCO; 33% forSKTelecom,

Korea 49.99% air transportation, 49.99% mining

Malaysia 100% in general

Pakistan 100% in general


Appendix 2— Investor Information 481

Philippines 40% in general; 30% for banks

Sri Lanka 100% in general; 49% for banks

Taiwan, China 30% in general

Thailand 10%−49% depending on company by−laws

Europe

Bulgaria 100% in general; banks need central bankapproval

Croatia 100% in general

Czech Republic 100% in general

Estonia 100% in general

Greece 100% in general

Hungary 100% in general

Latvia 100% in general

Lithuania 100% in general

Morocco 100% in general

Poland 100% in general

Portugal 100% in general

Romania 100% in general

Russia 100% in general;9% for Gazprom, 25% for UES.Banks need central bank approval.

Slovakia 100% in general; banks need central bankapproval

Slovenia closed to portfolio investors

Turkey 100% in general

Ukraine 100% in general

Mideast/Africa

Botswana 55% for institutional, 10% for private

Cote d'Ivoire 100% in general

Egypt 100% in general

Ghana 74% in general

Israel 100% in general

Jordan


Appendix 2— Investor Information 482

100% in general;50% for construction, retail trade, & miningsectors

Kenya 40% in locally controlled companies

Mauritius 100% in general; 15% for sugar companies

Nigeria 100% in general

Saudi Arabia 25% for GCC, otherwise closed for portfolioinvestors

South Africa 100% in general

Tunisia 49.9% in general

Zimbabwe 40% in general

Withholding Taxes In Emerging Markets:(U.S.−based Institutional Investors; End−1998)

MarketInterest(%)

Dividends(%)

Long−termcapitalgains onlistedshares(%)

Argentina 0 0 0

Bangladesh 0 15 0

Botswana 15 15 0

Brazil 15 0 0

Bulgaria 15 15 0

Chile 15 15 35

China 0 20 0

Colombia 7 0 0

Cote d'Ivoire 0 10 0

Croatia 0 0 0

Czech Republic 15 25 0

Ecuador 8 0 0

Egypt 0 0 0

Estonia 10 5−15 26

Ghana* 0 10 0

Greece 0 35 0

Hungary 0 10 10


Withholding Taxes In Emerging Markets: (U.S.−based Institutional Investors; End−1998) 483

India 20 20 10

Indonesia 20 20 0

Israel* 35 25 0

Jamaica 25 25 0

Jordan 0 10 0

Kenya 10 10 0

Korea* 13.2 16.5 0

Latvia 0 10 0

Lithuania 0 0 0

Malaysia 15 0 0

Mauritius 0 0 0

Mexico 0 0 0

Morocco 10 10 0

Nigeria 10 10 10

Pakistan 10 10 0

Peru 0 0 0

Philippines* 20 15 0.5

Poland* 40 20 0

Portugal 20 25 0

Romania 0 10 0

Russia 0 10 −

Saudi Arabia 0 0 0

Slovakia 0 0 0

Slovenia 0 15 0

South Africa 0 0 0

Sri Lanka 0 15 0

Taiwan, China 20 35 0

Thailand 15 10 0

Trinidad &Tobago*

10 10* 0

Tunisia 20 0 0

Turkey 13.2 0 0

Ukraine 15 15 0

Venezuela* 0 0 1*


Withholding Taxes In Emerging Markets: (U.S.−based Institutional Investors; End−1998) 484

Zimbabwe 30 15 10

Notes: List includes 51 emerging markets covered by IFC.

Estonia: 5% tax on dividends for holdings exceeding 10%of shares; 15% otherwise

Ghana: No withholding tax on dividends for individuals.

Israel: Tax treaties exist with some countries that lowerthese figures, including the U.S. (17.5%) and the U.K.(15%).

Korea: Rates are for funds in which U.S. investments totalmore than 25%. Tax rates shown include 10% resident taxapplied to base rate.

Philippines: Transactions tax in lieu of a capital gains tax.

Poland: No withholding tax on interest for individuals.

Trinidad and Tobago: 15% tax on dividends forindividuals.

Venezuela: Transactions tax.

Benchmarks for Settlement, Safekeeping, and Operational Risk:(As of End−1998)

GSCS Benchmarks indexes provide an indication to institutional investors of the aggregate level of operationalefficiency in securities markets post−trade. The risk/reward ratio in emerging markets is usually calculatedwithout regard to the unexpected—and often unquantified—costs of failure in market processes.

GSCS Settlement Benchmark

MarketFirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

Ave.1998

Ave.1997

Argentina 88.1 91.2 92.5 90.8 90.7 87.9

Brazil 88.8 89.6 84.8 87.8 87.8 88.0

China 71.7 81.5 87.0 92.9 83.3 68.3

Czech Rep. 74.9 78.5 72.3 81.2 76.7 65.8

Greece 74.5 31.4 −1.0 43.1 37.0 67.1

Hungary 24.4 38.6 37.6 51.7 38.1 17.6

India −0.4 2.9 18.6 18.8 10.0 −1.2

Indonesia 52.3 54.9 59.8 74.1 60.3 46.0

Korea 93.3 93.7 94.2 95.1 94.1 90.8

Malaysia 90.3 92.1 94.5 94.8 92.9 91.2


Benchmarks for Settlement, Safekeeping, and Operational Risk: (As of End−1998) 485

Mexico 91.0 93.4 92.3 92.6 92.3 89.3

Peru 83.9 87.5 88.5 85.5 86.4 90.3

Philippines 85.8 86.8 89.0 88.0 87.4 82.9

Poland 79.9 81.0 85.3 82.2 81.9 77.4

Portugal 72.7 78.7 67.0 67.1 71.4 74.9

South Africa −1.2 −1.2 −1.6 −1.3 −1.3 −0.9

Thailand 92.1 92.8 89.4 91.4 91.4 86.9

Turkey 95.6 95.0 92.9 96.1 94.9 95.8

Venezuela 43.6 65.1 −8.7 60.4 40.1 18.7

GSCS Safekeeping Benchmark

MarketFirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

Ave.1998

Ave.1997

Argentina 92.8 84.2 90.3 92.3 89.9 92.1

Brazil 89.8 87.6 86.2 87.0 87.7 91.8

China 92.2 n /a 93.5 94.9 93.5 90.0

Czech Rep. 64.1 91.2 92.2 89.3 84.2 74.6

Greece 57.6 52.3 52.3 80.3 60.6 81.1

Hungary 91.8 93.1 76.4 71.8 83.3 80.5

India 72.2 59.9 65.1 81.7 69.7 76.8

Indonesia 88.1 87.8 88.1 90.6 88.7 89.0

Korea 92.4 91.8 91.8 92.1 92.0 90.9

Malaysia 91.9 89.0 89.0 91.8 90.4 91.4

Mexico 92.5 89.3 87.9 81.8 87.9 91.0

Peru 85.6 67.7 67.7 88.8 77.5 82.5

Philippines 85.1 72.7 72.7 80.2 77.7 79.0

Poland 65.3 93.1 81.6 89.1 82.3 74.4

Portugal 95.0 91.6 93.1 93.6 93.1 80.2

South Africa 90.0 87.4 87.6 89.5 88.6 92.2

Thailand 83.8 63.7 87.8 87.9 80.8 88.1

Turkey 91.8 72.4 72.4 93.3 82.5 92.2

Venezuela 88.3 81.9 66.5 89.6 81.6 81.9


Benchmarks for Settlement, Safekeeping, and Operational Risk: (As of End−1998) 486

GSCS Operational Risk Benchmark

MarketFirstQuarter

SecondQuarter

ThirdQuarter

FourthQuarter

Ave.1998

Ave.1997

Argentina 69.4 75.6 75.6 70.6 72.8 69.0

Brazil 67.5 73.7 71.3 66.2 69.7 67.6

China 59.7 67.1 69.7 70.9 66.9 57.5

Czech Rep. 53.8 69.3 69.3 63.6 64.0 53.1

Greece 54.3 72.9 70.4 46.7 61.1 57.8

Hungary 42.8 68.5 66.8 47.4 56.4 36.4

India 24.9 62.6 65.3 36.5 47.3 23.5

Indonesia 55.2 65.3 69.8 63.8 63.5 53.4

Korea 74.3 78.2 76.6 75.0 76.0 72.7

Malaysia 71.4 74.9 75.0 73.0 73.6 71.5

Mexico 71.9 74.3 75.0 68.9 72.5 70.7

Peru 65.6 75.8 75.8 67.4 71.2 67.3

Philippines 63.7 71.4 71.8 62.9 67.5 60.4

Poland 54.6 72.8 72.8 63.1 65.8 56.6

Portugal 67.7 75.4 77.2 64.8 71.3 62.6

South Africa 26.7 64.3 72.5 26.2 47.4 28.7

Thailand 70.1 76.2 76.2 71.4 73.5 69.7

Turkey 71.5 73.6 72.6 72.2 72.5 71.7

Venezuela 46.8 74.5 74.5 54.8 62.7 31.0

Settlement

The Settlement Benchmark provides a means of comparing the settlement efficiency of different markets andtracking the evolution of settlement performance of individual markets over time. The benchmark incorporatesfour components which, combined together, reflect the overall cost to the market participants of failed trades.These include average trade size, local market interest rates, the proportion of trades that fail, and the length oftime for which they fail. By converting information back into a base currency, comparisons between marketsbecome possible. The Benchmarks are expressed as a score out of 100.

For the fourth consecutive year, Turkey was topranked in terms of settlement, achieving a settlement benchmarkof 94.9. Although this figure was down slightly from 1997, Turkey's performance still surpasses many of themajor markets. However, Korea now comes a close second, having shown continual improvement throughout theyear. Other markets with settlement scores above 90 were Argentina, Malaysia, Mexico, and Thailand.

Overall, fourteen markets saw an increase in settlement efficiency during 1998. In several cases, notably Chinaand Indonesia, the improvements were consistent quarter to quarter. Of the six declines, only Greece reported asignificantly lower performance, having grappled with huge volume increases and a delay in plannedinfrastructure reforms. Dematerialization is, however, due to start at the end of March 1999 and this should help


Settlement 487

address processing bottlenecks.

India has begun to see the fruits of infrastructure reform, though scores have a long way to climb. The same canbe expected in South Africa once the reform program, which includes contractual settlement dates anddematerialization, is completed.break

GSCS Safekeeping Benchmark

The Safekeeping Benchmark compares the efficiency of different markets in terms of collection of dividends andinterest, reclamation of excess withheld taxes, and protection of rights in the event of a corporate action. TheBenchmark assesses these aspects through a five factor model. These include typical market yields on equity andfixed income securities, rates of withholding tax and reclaim potential, average time between payable date andreceipt of payment, local market interest rates, and number and type of corporate actions that occur. By assigningweights to each of these factors, it is possible to calculate a Benchmark as a score out of a maximum of 100.

For the second year running, emerging market scores for safekeeping showed a small decline with 13 marketsreporting an average annual decrease. Top ranked in 1998 were China and Portugal with totals of 93.5 and 93.1,respectively. Korea and Malaysia were the only other markets to score above 90.

GSCS Operational Risk Benchmark

The Operational Risk Benchmark takes into consideration the settlement and safekeeping benchmarks. However,it assigns them a different weight depending on the relative complexity of each in the different markets. TheBenchmark takes into account other operational factors such as the level of compliance with the recommendationsof the Group of Thirty (G30). It also accounts for the complexity and effectiveness of the regulatory and legalstructure of the market, such as constraints on capital flows, foreign investment restrictions, and marketsupervision. Finally, it incorporates two factors which may not be the direct responsibility of the custodians butwhich cannot be ignored by them: counterparty risk and "force majeure" risk.

Korea once more gained the highest Operational Risk Benchmark, improving on an already strong operationalperformance to score 76.0. Three other markets, Argentina, Malaysia, and Thailand, achieved scores above lastyear's highest. All the markets covered showed some improvement on the previous year in terms of operationalrisk.

For further information, contact:Peter Staras, GSCS Benchmarks Ltdtel: (+44−171) 415− 7199fax: (+44−171) 415 −7198E−mail: [email protected]

GSCS/Thomson Index

The GSCS/Thomson Operational Risk Adjusted Index has been created to help investment managers, custodians,broker/dealers and their clients better understand exactly what happens to costs when portfolios of cross−borderequity securities are changed. The Index captures both the investment return of different markets as measured bystandard indices and the operational costs incurred through dealing in these markets.

Index calculations for all of the major markets and most of the emerging markets were set at 100 on December 31,1992. Where new markets have been added to the sample, their date of entry is indicated in the accompanyingtable.


GSCS Safekeeping Benchmark 488

Overall, 13 of the 20 emerging markets surveyed registered a decline between December 1997 and December1998 as measured by the GSCS/Thomson Index. Some markets have by contrast shown significant gains,operational costs notwithstanding. Korea saw an increase of over 139% though it remains well below its base yearindex level. The highest ranking markets in index terms at the end of 1998 were Portugal and Greece.

For further information, contact,Robert Kay, GSCS LtdTel: (+44−1932) 568−488Fax: (+44−1932) 564−290

Denise Farrell, Thomson ESGTel: (+44−171) 369−7086Fax: (+44−171) 369−7101break

Dec1997

Dec1998

Change(%)

Argentina 153.76 108.24 −29.60

Brazil 326.92 184.23 −43.65

China 66.24 29.93 −54.82

CzechRepublic

76.39 69.95 −8.43

Greece 122.62 237.92 94.03

Hungary 143.94 126.98 −11.78

India 104.49 76.98 −26.33

Indonesia 52.16 35.09 −32.73

Korea 20.54 49.12 139.14

Malaysia 46.25 44.23 −4.37

Mexico 104.65 61.76 −40.98

Peru 156.93 93.43 −40.46

Philippines 38.86 41.73 7.39

Poland 76.00 65.66 −13.61

Portugal 243.19 295.95 21.69

South Africa 79.57 80.28 0.89

Thailand 14.83 20.38 37.42

Turkey 392.74 181.73 −53.73

Venezuela 232.86 112.29 −51.78

Base = 100 as of 12/31/92 except

India 3/31/93 Venezuela 2/29/96


GSCS Safekeeping Benchmark 489

Peru 2/28/95 China 12/31/96

Philippines 2/28/95 CzechRep.

12/31/96

S. Africa 2/28/95 Hungary 12/31/96

Ireland 2/29/96 Poland 12/31/96

Global Trading Costs:(Fourth Quarter 1998)

Elkins/McSherry (E/M) has been involved with trading cost studies for more than 600 institutions during the past11 years. The company analyzes global trading costs for 140 large global institutions (pension funds, investmentmanagers, banks, and brokers), which send E/M all of their global equity trades quarterly.

The E/M analysis measures total trading cost, which consists of commissions, fees, and market impact. Marketimpact is the difference between the price at which a trade is executed and the average of the stock's high, low,opening, and closing prices during the trade date. The E/M Trading Cost Analysis Service is not designed toassess the quality of a trade, but rather to give an indication of how commissions, fees and market impact costscompare to a universe of costs in 42 countries.

Elkins/McSherry consulted with prominent global investment managers before creating its market impactmethodology. Investment managers consistently favored a benchmark based on the average of the high, low,opening, and closing prices. After extensive testing, this approach was adopted. The data base contains the high,low, opening, closing prices, and volume traded for every equity traded in 42 countries beginning January 1995.

E/M's 42 country universe is composed of data from 140 global institutions. The data is compiled to createaverage trading costs for these countries. The chart provides a global equity investor with a universe of averagecosts to compare their costs versus 140 other institutions. It confirms that it is considerably more expensive totrade in emerging markets. It is broken down into five columns:

Average stock price is the average traded stock price in U.S. dollars in that country.

Average commission is the average commission paid in that country (U.S. dollars).

Average fees is the average fee paid in that country (U.S. dollars).

Market impact is the average cost of trading in that country (U.S. dollars). More precisely, it is the average costto trade versus the average price.

Total is the total cost of trading in that country (U.S. dollars). The number is simply obtained by adding the costof commission, fees and market impact.

For further information, contact:James Bryson, Elkins/McSherrytel: (212) 371−3728fax: (212) 207−4563E−mail: jimb@elkins−mcsherry.combreak


Global Trading Costs: (Fourth Quarter 1998) 490

Fourth Quarter, 1998 Elkins/McSherry Global Universe

CountryAvgs.

Price Comm Fees MktImpact

Total

Argentina $4.61 34.73BP 5.19BP 8.75BP 48.67BP

Australia $3.95 30.78BP 14.13BP 2.13BP 47.04BP

Austria $80.77 29.54BP 3.39BP 21.19BP 54.12BP

Belgium $241.08 21.24BP 2.19BP 10.50BP 33.93BP

Brazil $0.22 30.39BP 3.69BP 12.54BP 46.62BP

Canada $26.73 19.57BP 0.01 BP 24.36BP 43.94BP

Chile $24.39 23.69BP 0.00BP 23.34BP 47.03BP

Colombia $4.83 48.09BP 0.00BP 47.01BP 95.10BP

CzechRepublic

$81.83 62.02BP 1.73BP 97.22BP 160.97BP

Denmark $95.13 23.25BP 1.32BP 18.82BP 43.39BP

Finland $37.65 25.99BP 1.86BP 16.12BP 43.97BP

France $95.22 21.68BP 1.29BP 3.59BP 26.56BP

Germany $87.48 22.45BP 1.65BP 3.48BP 27.58BP

Greece $44.60 39.25BP 14.03BP 10.33BP 63.61BP

Hong Kong $2.36 30.71BP 14.20BP 5.19BP 50.10BP

Hungary $33.58 63.21BP 4.43BP 34.68BP 102.32BP

India $13.70 16.04BP 0.00BP 48.73BP 64.77BP

Indonesia $0.39 64.34BP 12.69BP 18.48BP 95.51BP

Ireland $9.77 26.00BP 56.05BP 17.37BP 99.42BP

Italy $5.18 22.38BP 1.81BP 6.19BP 30.38BP

Japan−Buys $14.73 17.12BP 0.03BP 1.09BP 18.24BP

Japan−Sells $11.01 16.89BP 13.57BP 5.83BP 36.29BP

Korea $15.28 43.86BP 11.64BP 42.33BP 97.83BP

Luxembourg $53.22 25.82BP 5.00BP 39.22BP 70.04BP

Malaysia $1.32 62.67BP 9.45BP 18.71BP 90.83BP

Mexico $2.90 32.18BP 1.89BP 26.91BP 60.98BP

Netherlands $49.32 21.47BP 1.73BP 6.70BP 29.90BP

New Zealand $2.23 30.85BP 0.27BP 7.81BP 38.93BP


Global Trading Costs: (Fourth Quarter 1998) 491

Norway $20.78 26.97BP 1.26BP 8.14BP 36.37BP

Peru $3.28 38.99BP 6.71 BP 30.27BP 75.97BP

Philippines $1.39 68.48BP 28.03BP 8.50BP 105.01BP

Portugal $38.33 27.91BP 5.42BP 7.81BP 41.14BP

Singapore $2.80 56.52BP 4.43BP 23.91 BP 84.86BP

South Africa $9.22 29.26BP 16.07BP 13.17B− 58.50BP

Spain $33.58 25.12BP 2.01BP 15.91BP 43.04BP

Sweden $24.32 23.62BP 1.06BP 6.22BP 30.90BP

Switzerland $838.01 23.70BP 5.13BP 17.21BP 46.04BP

Taiwan $4.10 22.92BP 29.35BP 4.55BP 56.82BP

Thailand $2.31 60.55BP 2.84BP 12.13BP 75.52BP

Turkey $0.07 35.71BP 4.53BP 16.86BP 57.10BP

U.K.−Buys $8.08 18.13BP 47.58BP 5.29BP 71.00BP

U.K.−Sells $8.81 15.98BP 0.12BP 18.12BP 34.22BP

U.S.−NYSE $41.06 13.92BP 0.15BP 9.48BP 23.55BP

U.S.−OTC $34.30 3.15BP 0.13BP 26.61BP 29.89BP

Venezuela $5.68 84.92BP 27.77BP 32.04BP 144.73BP

Total−45 $47.10 32.93BP 8.13BP 18.55BP 59.62BP

*Note: The United States, United Kingdom, and Japan have twouniverses to acknowledge special tariffs and marketplaces in thosecountries.

Investment Regulations Summary for Entering and Exiting Emerging Markets:(As of End−1998)

Entry Exit

Are listed stocksfreely available toforeign investors?

Repatriation of

Income Capital

Free Entry

Argentina Free Free

Bangladesh Free Free

Bulgaria Free Free


Investment Regulations Summary for Entering and Exiting Emerging Markets: (As of End−1998) 492

Botswana Free Free

Brazil Free Free

Cote d'Ivoire Free Free

Croatia Free Free

Czech Republic Free Free

Ecuador Free Free

Egypt Free Free

Estonia Free Free

Ghana Free Free

Greece Free Free

Hungary Free Free

Israel Free Free

Jordan Free Free

Latvia Free Free

Lithuania Free Free

Mexico Free Free

Morocco Free Free

Pakistan Free Free

Panama Free Free

Peru Free Free

Poland Free Free

Portugal Free Free

Romania Free Free

Russia Free Free

South Africa Free Free

Turkey Free Free

Ukraine Free Free

Relatively FreeEntry

Chile Free After 1 year

Indonesia Some restrictions Somerestrictions

Jamaica Free Free



Kenya Free Free

Korea Free Free

Malaysia* Free After 1 year

Mauritius Free Free

Nigeria Free Free

Sri Lanka Some restrictions Somerestrictions

Thailand Free Free

Trinidad & Tobago Free Free

Tunisia Free Free

Ukraine Some restrictions Somerestrictions

Venezuela Some restrictions Somerestrictions

Zimbabwe Free Free

Special Classes ofShares

China Free Free

Philippines Free Free

AuthorizedInvestors Only

Colombia Free Free

India Free Free

Taiwan, China Some restrictions Somerestrictions

Closed

Saudi Arabia Closed Closed

Slovenia Restrictions Restrictions

Key to Entry:

Free Entry: No significant restrictions to purchasing stocks.

Relatively Free Entry: Some registration procedures required to ensure repatriation rights, or significant limits onforeign ownership.



Special Classes: Foreigners restricted to certain classes of stocks, designated for foreign investors.

Authorized Investors Only: Only approved foreign investors may buy stocks.

Closed: closed or severely restricted (e.g., for non−resident nationals only).

Key to Exit:

Repatriation of income: Dividends, interest, and realized capital gains.

Repatriation of capital: Initial capital invested.

Free: Repatriation done routinely.

Some Restrictions: Typically, requires some registration with or permission of Central Bank, Ministry of Finance,or an Office of Exchange Controls that may restrict the timing of exchange release.

Notes: In February 1999, the Malaysian government replaced the 12−month holding period for equities imposedin September 1998 with a Repatriation Levy—a graduated levy to be paid upon repatriation ranging from 10% to30% depending on the holding period.

Some industries in some countries are considered strategic and are not available to foreign or non−residentinvestors. The level of foreign investment in other cases may be limited by national law or corporate policy tominority positions, not to aggregate more than 49% of voting stock. The summaries above refer to "new money"investment by foreign institutions.break

Appendix 3—IFC Emerging Markets Data Base

EMDB Publications and Products

Publications

Emerging Stock Markets Review

This publication provides regular coverage of emerging stock markets as well as hundreds of stocks comprisingthe IFC Global and Investable indexes. Each issue contains:

Comparative tables, with the most recent information on the IFC Indexes, market valuation measures, andexchange rates

Market weights in the IFC Global and Investable indexes

Largest 100 stocks in the IFCG and IFCI Composite Indexes, listing market caps, weight in the composite, andforeign investable weight factors for each stock

50 best and worst performing stocks in the IFCG and IFCI Composite Indexes


Appendix 3— IFC Emerging Markets Data Base 495

Stock weights in the IFCG and IFCI Composite Index by market, listing market caps, weight in market, region,and composite, and foreign investable weight factor for each stock

Details on constituents of the IFC Industry Indexes

Subscribers also receive the monthly Frontier Stock Markets Review and the annual Emerging Stock MarketsFactbook.

Frontier Stock Markets Review

This publication provides regular coverage of "frontier" stock markets and includes most of the features found inthe Emerging Stock Markets Review.

Subscribers also receive the monthly Emerging Stock Markets Review and the annual Emerging Stock MarketsFactbook.

Emerging Stock Markets Factbook

The Factbook is considered the foremost annual publication on stock markets in the developing world. In oneconvenient volume, it combines various time series of fundamental market data on the primary emerging markets.With a ten−year historical perspective, the Factbook provides both fundamental economic information and vitaldata on market size, liquidity, and valuations. Each Factbook is divided into several sections:

An overview provides commentaries, tables, and charts on a variety of statistics for the key emerging markets

An extensive section on indexes provides the methodology, statistical characteristics, and the IFC Indexes andtheir local counterparts

Market profiles provide a statistical look at more than 50 emerging markets

A listing of stock exchanges showing principal officers, addresses, hours of operation, and telephone/faxnumbers of more than 75 stock exchanges in the developing world

The IFC Indexes:Methodology, Definitions, and Practices

The IFC Indexes explains in detail the methodology and selection criteria for the markets and stocks that make upthe IFC indexes. It also elaborates on the need for a standard measure of performance in emerging markets anddescribes the basic characteristics and weights of the indexes.break

Computer Products

EMDB produces three principal time series of emerging stock market data. The data is accessible through EMDB2000, a PC−based data management and report−writing system that make EMDB data files easy to use and toupdate.

Stock Series

This series provides data on more than 2,200 stocks in 51 emerging markets. It includes data on prices, changes incapitalization, trading volume, and valuation ratios and financial data. The data is available in daily, weekly, andmonthly time series.


Frontier Stock Markets Review 496

Index Series

This series consists of parallel sets of IFC Global and Investable Indexes for the markets covered by EMDB.Statistics include price and total return indexes in local currency and U.S. dollars, as well as index−levelcapitalization, trading volume, and valuation ratios.

Market Series

This series provides monthly and annual series of aggregate market data for 51 emerging markets, dating to 1975.

Data Delivery

EMDB now provides the fastest data delivery in emerging markets. Computer products can be updated by FTP orthrough e−mail either daily, weekly, or monthly. EMDB publications are sent by courier delivery. Please call formore information.

EMDB Online

EMDB maintains a comprehensive site on the Internet. Features include:

a monthly newsletter with commentary on all 51 markets covered by IFC;

daily, weekly, and monthly index results;

EMDB technical notices and special announcements;

links to emerging stock markets.

EMDB's home page is www.ifc.org/emdb .

Subscription Information

For more information on Emerging Markets Data Base products and services, please call, write, fax, or email:

Emerging Markets Data Base2121 Pennsylvania Avenue, NWF−6K−118Washington, D.C. 20433USA

Telephone: (202) 473−9520Facsimile: (202) 974−4805E−mail: [email protected]

News Service Access to Indexes

The IFC Indexes are carried in whole or part by the following information services:

Periodicals

Financial Times (daily)


Index Series 497

http://www.ifc.org/emdb.

New York Times (weekly)

Nikkei Financial Daily

International Financing Review (IFR)

Emerging Markets Week (Institutional Investor)

Global Finance

Emerging Markets Investor

Global Investment and Daily Foreign Exchange News

Quote Services with Daily Index Updates

Reuters page <IFCINDEX>

Bloomberg <IFC><GO>

FactSet

Datastream

Telekurs

Zephyr

FT Analytics

Rimes

BARRA

Fame

Wilshire


Quote Services with Daily Index Updates 498

Emerging Stock Markets Factbook 1999 (Global Stock Markets Factbook)

Documents

Transcript of Emerging Stock Markets Factbook 1999 (Global Stock Markets Factbook)