The re-emergence of equities in Emerging Markets

March 9 (Bloomberg) — Eastern European and Central Asian equity markets led gains in the year since global stocks sank to their lowest level after the bankruptcy of Lehman Brothers Holdings Inc.

The Ukrainian Equities Index has surged more than fourfold since March 9 last year when global and U.S. benchmark indexes slid to lows. That’s the biggest gain among 93 global stock measures tracked by Bloomberg. Gauges in Kazakhstan, Romania, Russia, Hungary, Estonia and Cyprus have more than doubled.

“Emerging markets have gotten over a bad bout of flu and are well on their way to recovery,” said Shane Oliver, Sydney- based head of investment strategy at AMP Capital Investors, which oversees about $90 billion. “For developed markets, the cancer has gone into remission.”

The MSCI World Index, which tracks developed markets, has gained 70 percent since March 9 last year, when it sank to the lowest level in more than 13 years. Stocks had plunged worldwide after Lehman Brothers’ bankruptcy filing in September 2008 triggered panic in financial markets and pushed the global economy toward recession. The Standard & Poor’s 500 Index has advanced 68 percent in the past 12 months.

Emerging markets are likely to perform better than those in developed nations given better growth prospects, Oliver said.

Sri Lanka’s Colombo All-Share Index surged 135 percent in the past year with the end of the island’s civil war. Argentina’s Merval Index and Turkey’s ISE National 100 Index were also among the top 10 gainers.

Skyworth Rallies

Hong Kong-listed Skyworth Digital Holdings Ltd., which sells color televisions in China, has surged more than 12-fold in the past year as China sought to boost consumer spending by giving rebates for household appliance purchases by residents in rural areas. Skyworth is the best gainer on the MSCI Emerging Markets Index and the MSCI Asia Pacific Index.

Stock measures in Slovakia, Ecuador and Bahrain had the biggest declines in the past year. Acom Co., Japan’s third- largest consumer lender by market value, is the worst performer on the MSCI Asia Pacific Index. Its stock has declined 46 percent as profit plunged 92 percent in the nine months ended Dec. 31, after the company reduced loans and cut jobs to cope with tougher lending laws.