Economy

2020, a year of extremes on the stock market: tech wins, real estate loses

Many investors probably would not have thought it in the spring, but investors were still able to make money on the stock market. The AEX index rose by 3.3 percent in 2020 to 624.6 points.

The Midcap index, of medium-sized listed companies, gained 2.6 percent and the Small Cap index gained 12.2 percent.

Alfen: x 5

This enormous growth of the Small Cap index is partly due to the price explosion at Alfen, which makes charging stations for electric cars, among other things. It is the absolute winner of the 75 largest companies on the Amsterdam stock exchange. The price increased fivefold this year.

The company is benefiting from the popularity of electric cars. Even during the low point of the corona crisis, the price was still above the level at the beginning of the year.

Big differences

In the AEX, Adyen, which makes electronic payments possible, was the star. The share price rose on balance by an incredible 160 percent in 2020. This makes it by far the best performing fund in the AEX index. At the other end of the spectrum is Galapagos, which posted a 57 percent loss.

In the Midkap the differences are slightly smaller, but still huge: Corbion won 64 percent, Fugro fell 62 percent. They are a good illustration of the dichotomy in the stock market this year, roughly between companies that took advantage of the corona crisis and those that suffered from it.

Winners

Tech funds in particular have done very well. After Adyen follow in the AEX index ASMI and ASML, which make machines with which chip manufacturers make chips.

“After all, consumers are now more likely to buy a new phone, computer or screen and all of that requires chips”, says Jos Versteeg, equity analyst at InsingerGilissen.

Other benefits include Just Eat Takeaway (we started ordering more because restaurants are closed) and Midkapper PostNL (which delivers much of what we order online to us).

Losers

Among the biggest losers in 2020 are retail property owners. Unibail-Rodamco plummeted 54 percent, Midkapper Eurocommercial Properties 39 percent and Small Cap Wereldhave 47 percent.

Shell feels that we drive and fly less cars: on balance, investors saw 44 percent of their money go up in smoke. In the wake, Fugro is suffering. It receives fewer orders from oil and gas companies.

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