IPOX Weekly Summary
· AAPL-free IPOX Strategies mixed for a second week.
· IPOX China (CNI) remains buoyed for a fourth week.
· U.S. Futures and Option expiration ahead.
Flood of IPO activity in Japanese small-caps.
IPOX Returns, Notable Company Moves
· AAPL-free IPOX Strategies consolidate for a second week, IPOX China surges for a fourth week: Amid continued jitters on the U.S. fiscal cliff, NASDAQ-100 (NDX) weakness (F1), FED stimulus hope and Europe/Asian relative strength (F2), the IPOX Strategies traded mixed. For example, the IPOX Global 50 (IPGL50) closed out the week at a fresh YTD high, rising +0.52% to +22.13% YTD, 3 bps. less than benchmark MSCI World (MXWD). Gains were capped by another week of declines in the IPOX U.S. heavyweights including U.S. social networker USDbn 55.09 Facebook (FB) after another lock-up expiration and inclusion into the Nasdaq-100 (NDX), U.S. car manufacturer and S&P 500 inclusion candidate General Motors (GM) and post-S&P 500 (SPX) inclusion weakness in U.S. Discount Retailer Dollar General (DG). Another strong week in the recent U.S. refinery spin-offs including Buffet-backed USDbn 33.5 Phillips 66 (PSX) and USDbn 21.3 Marathon Petroleum (MPC) helped to mitigate deeper losses in the key IPOX U.S. Strategies. Ahead of U.S. Futures and Options expiration, U.S. index spreads (F1) gyrated with relative weakness in the Nasdaq-100 (NDX) continuing amid further declines in Apple (AAPL). The positive weekly showing in the Russell 2000 (RUT: +0.18%) with big buying towards Friday's close points at the start of the "January" effect, a time of seasonal outperformance of U.S. small-caps. While China-linked markets continued to soar on strength in mainland equities on QFII action, good economic numbers and rumors over concerted support for the beleaguered domestic equity market, we note a new multi-year high in the IPOX Asia-Pacific 30 (IPTA).
· IPOX Strategies Comparative Returns YTD 2012:
|Ticker (BBG/Reuters)||Week||Q3 12||YTD 12|
|IPOX Global 50 (IPGL50) (USD)||+0.52%||+7.31%||+22.13%|
|MSCI World (MXWD)||+0.55%||+6.24%||+12.30%|
|IPOX U.S. 100 (IPXO)||-0.71%||+7.09%||+25.66%|
|IPOX U.S. 30 (IPXT)||-1.07%||+5.39%||+25.18%|
|S&P 500 (SPX)||+0.32%||+5.76%||+12.40%|
|IPOX Europe 50 (IPXUJPEU) (EUR)||+0.33%||+11.75%||+5.83%|
|IPOX Europe 30 (IXTE) (EUR)||+0.14%||+11.76%||-0.16%|
|STOXX 50 (SX5P) (EUR)||+0.16%||+5.76%||+9.23%|
|IPOX Asia-Pacific 30 (IPTA)||+1.03%||+6.82%||+29.62%|
|MSCI Asia-Pacific (MXPC)||+0.62%||+2.56%||+8.64%|
|IPOX China 20||+2.69%||-1.96%||+15.53%|
|IPOX China Cp. (IPXUCHCP)||+2.59%||+3.18%||+16.41%|
|Hang Seng Enprs. (HSCEI)||+3.56%||+2.68%||+13.80%|
· Significant IPOs Traded (Week: 12/10/2012):
|Solarcity Inc.||(SCTY) US||+46.50%|
|PBF Energy Inc.||(PBF) US||+3.92%|
2 significant IPOs commenced trading last week, while mainland China IPO activity remained shut. Amid a reduction in deal size, Elon Musk-backed high beta alternative energy firm Solarcity saw its initial pricing range smashed by 33%, but closed the week a strong +46.50% from the final offering price.
· Upcoming global IPOs (Week: 12/17/2012):
|No significant accessible deals set to commence trading|
We note the resurgence in Japanese small-cap IPO activity, with another 7 deals set start trading during the upcoming week: Amongst the list of firms are Zenkoko Hosho (7154 JP), Mobile Create (3669 JP), Syuppin (3179 JP), Punch Industry (6165 JP), Euglena (2931 JP), Jibannet (6072 JP) and Grandes (3261 JP).
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.