Brussels stock index hits all-time high after 18-year wait

The Bel20, the index of Belgium’s 20 biggest listed companies, has reached its highest level ever, climbing above 4,756.9 points and breaking the record set in May 2007. The milestone comes after an unusually long recovery from the 2008 financial crisis, which hit the Belgian market harder than many others due to its heavy exposure to banks like Fortis and Dexia.

Unlike markets in Paris, Frankfurt and Amsterdam, boosted in recent years by fast-growing tech, luxury and industrial firms, the Bel20 has long been dominated by slow-growing “value” stocks that pay high dividends but offer limited expansion. It has missed global growth trends in technology, defence and energy.

Recent strong performances by biotech firm Argenx, bank KBC and pharmaceutical group UCB, alongside renewed interest in European shares, helped push the index over the line. While the headline index only now tops its pre-crisis peak, investors who held Bel20 shares have earned substantial dividends over the years.

The Bel20 has risen about 17 per cent in the past year and more than 10 per cent since January, but analysts warn the record comes amid global economic uncertainty. A market correction, they say, is still possible.

^{© BELGA PHOTO NICOLAS MAETERLINCK}