Belgium's top index breaks 18-year-old record, capping slow recovery from 2008 crisis
The milestone marks a long-awaited recovery for Belgian equities, which have taken much longer to bounce back than neighbouring markets. France and Germany broke their pre-financial crisis records after 14 and five years, respectively, while Belgium needed nearly two decades to do it.
This prolonged recovery was partly due to the market's relatively heavy exposure to the financial sector during the 2008 crisis, which devastated Dexia and Fortis that were among Belgium's largest companies at the time.
Fortis bank was ultimately sold to BNP Paribas (BNPP.PA), opens new tab in a deal that left the Belgian state a top shareholder in the French bank, a position it still holds. Ageas rose from the ashes of Fortis' insurance operations to become Belgium's largest insurer.
The country also lacks the industrial and business powerhouses that have driven growth in neighbouring countries, according to senior financial economist Tom Simonts from KBC Group.
"We don't have anything related to AI. Chips? No. Luxury? No. European defence? No. We missed all the really big trends," Simonts told Reuters.
He said the record-breaking stock performance was indicative of Belgium's economic resilience in the face of macroeconomic and local uncertainties, pointing to the country's strong field of small and medium-sized enterprises, along with generally strong corporate balance sheets and high cash reserves that have helped companies weather economic storms.
"We're no Michael Schumacher, but we're still in the race," Simonts concluded, looking at the future performance of BEL 20.
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