With jitters over energy increasingly inflicting damage on developed markets momentum, the IPOX Global and IPOX Regional Indexes outperformed strongly last week, with key indexes benefiting from a big jump in China-related shares. Key U.S. large-cap IPOs lined up.
- On the back of a big surge in HK-traded Chinese stocks across industries and outperforming emerging markets, the IPOX Global Indexes surged last week. The broad IPOX-100 Global (IPGL100) rose +2.15%, beating key benchmarks MSCI World (MXWD) and S&P 500 (SPY) by +123 and +205 bps. Respectively, its biggest relative move this year. 64/100 companies in IPGL100 rose on the week, with the average (median) index member gaining +2.14% (+1.27%), in line with the liquidity-adjusted index.
- In the United States, the IPOX-100 U.S. (FPX): +0.45% once more was able to shrug-off declines in hedge fund-heavy BSBR-like heavyweight General Motors (GM): -2.59%. Big support looks now the upper range of its original book building range near USD 29.00. Health-care technology firms rose strongly with Accretive Health (AH) UN: +9.71% and MedAssets (MDAS) US: +12.73% in focus. While the IPOX Europe Universe traded in line, focus amongst the IPOX Regional Indexes was on the IPOX-30 Asia-Pacific Index (IPTA: +3.41%) benefiting from a big week in Chinese consumer stocks and another solid performance amongst its key Japanese holdings Dai-Ichi Life (8750 JT: +6.84%), Aozora (8304 JT: +3.83%) and social networker Gree Inc. (3632 JT: +3.66%).
- Amid a big comeback in recent Chinese Financials and Consumer IPOs and Latin American IPOs OGX (OGXP3 BS: +6.58) and Ecopetrol (EC UN: +3.42%), the IPOX China and IPOX Latin America Indexes are now trading at par with the benchmarks YTD.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: The IPOX Indexes may be long or short aforementioned companies.