The scope of assets under management by the Landsbankinn Group grew in 2019 and customers received good returns on their assets. Customer services were variously improved and securities transactions were made more accessible.
*Including pension savings
Economic growth cooled significantly in 2019 following the robust growth of recent years. Despite the fall of WOW air and negative pressure in the domestic economy, the selected shares index, having regard for dividend payments (OMXI10GI), rose by 33.2% in 2019. Rate cuts in 2019 alongside a significant increase in the price of Marel’s shares, which weigh heavily in the index, have boosted the selected shares index upwards. The successful double-listing of Marel on Euronext, Amsterdam was a positive development for Iceland’s largest listed company.
The Main List index (OMXIGI) rose by 27.8% in 2019 and if all companies are given equal weight, the increase was 14.7%. Having regard for dividends, the shares of Marel rose most, by around 68.5%, with shares in Síminn coming in second at around 44.6%. Icelandair’s stock increased most, by 21.2%, with shares in Sýn falling by 16.3%.
The year was also successful on many global stock markets. The MSCI World Index rose by 25.2% during the year, measured in USD, and the S&P 500 by 28.0%.
2019 was coloured by a high degree of uncertainty about the operating environment of airlines Icelandair and WOW air, first due to the bankruptcy of WOW air and later due to problems with Icelandair’s Boeing MAX aircraft.
One new company, Icelandic Seafood International, was taken into the Main List of the domestic stock exchange in 2019. The abolishment of capital controls in spring of 2019 had a positive impact on the stock market and the Icelandic stock market was upgraded to a frontier market by FTSE-Russel in fall. The hope is that the equity market will be classified as a frontier market by MSCI 2020.