CONSOLIDATED FINANCIAL STATEMENTS >
DIRECTORS’ REPORT
38
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
FINANCIAL MARKET PERFORMANCE
In a gradually stabilising global economic environment, placing the major stock
markets in generally positive territory in 2013, the Prysmian stock increased its value
by about 25%.
Prysmian S.p.A. has been listed on the Italian Stock Exchange
since 3 May 2007 and has been included since September
2007 in the FTSE MIB index, comprising the top 40 Italian
companies by capitalisation and stock liquidity. The Prysmian
stock has since joined the principal world and sector indices,
including the Morgan Stanley Capital International index
and the Dow Jones Stoxx 600, made up of the world’s largest
companies by capitalisation, and the FTSE ECPI Italia SRI
Leaders, composed of a select basket of stocks of Italian
companies that demonstrate excellent Environmental, Social
and Governance (ESG) practice.
During 2013, persistent weakness in the Eurozone and
slowdown by both the Asian emerging economies and
the United States left the world economy to continue the
decelerating trend in progress since the second half of 2011.
Overall, global demand in 2013 nonetheless reported a slight
increase mainly due to the growth achieved by emerging
markets which, although significantly lower, confirmed their
ability to deliver much higher growth rates than the advanced
economies. In the United States, the fiscal consolidation
measures adopted to reduce public debt, partially held back
the economic recovery underway, although in the course of
the year, private domestic demand became steadily stronger
and the unemployment rate came down. In Europe, the
economic downturn, already exacerbated by the introduction
of deficit-cutting measures in several Eurozone countries
and consequent tightening of fiscal pressure, gradually
stabilised in the second half of the year. Despite the partial
improvement in competitiveness and gradual recovery
in exports, Europe continues to display strong structural
weakness in its peripheral countries, especially with regard to
the lack of recovery in domestic demand and the continuing
rise in unemployment rates.
Given the gradual stabilisation of the economic situation,
especially in the second half of the year, the major world
equity markets were generally positive, also thanks to
measures by central banks to support the banking system,
ensuring ample liquidity while maintaining very low rates
at the same time; this also made it possible to severely
limit speculation about the sustainability of debt in some
Eurozone countries. The US indices managed to close the
year in positive territory, with rises of between 26% and 38%;
