Stocks consolidated after option expiration following six weekly gains, with the conventional large- and mega-cap exposure outperforming anew. The IPOX Strategies held firm, with only the IPOX U.S. underperforming. No significant IPOs priced, traded and scheduled for the week. Getty Images is off the block.
IPOX Global Indexes
Key IPOX Strategies continue to record relative gains, only the IPOX U.S. was hit by relative weakness in U.S. small-caps:
- The IPOX Global 50 (IPGL50), the key gauge for the performance of the largest and most successful global IPOs and spin-offs over a four-year rotational cycle, fell just -0.05% to +13.58% YTD on the week, outperforming the benchmark MSCI World (NYSEARCA:URTH) by +32 bps to +528 bps. YTD.
- The IPOX Global 50 (IPGL50) benefited from a great relative week in the IPOX China linked-strategies (CNI, IPXUCHCP), with key consumer/real estate-linked companies including USD 17bn Want Want China (151 HK: +7.88%) and Evergrande Real Estate (3333 HK: +2.17%) rising. Michael Kors (KORS: +3.51%) gained anew. The recent slew of Malaysian privatization offerings including palm oil maker Felda Global Ventures (FGV MK: +0.20%) and hospital operator IHH Health Care (IHH MK: +0.00%) traded virtually unchanged.
IPOX Regional Indexes Action
Within the IPOX Regional universe, the IPOX U.S. 100 (NYSEARCA:FPX) lagged the market on relative weakness in U.S. small-caps, falling by -1.38% to +16.22% YTD:
- At the same time, the narrower and large-cap centric IPOX U.S. 30 (IPXT) lagged for another week, retreating by 31 bps. versus the IPOX U.S. 100 (IPXO) to +15.25% YTD. After the strong gains from the previous week, a disappointing showing in beleaguered car maker General Motors (GM: -3.77%) hurt, while private-equity backed IPOs, including Dunkin Brands (DNKN: -8.61%) and Nielsen Holdings (NLSN: -1.81%) lagged again.
- The IPOX Europe universe recovered for another week, with the broad IPOX Europe 50 (IPXUJPEU: -1.40%) beating benchmark Stoxx 50 (SX5P: -1.68%). A big drop in embattled Spanish Financial Bankia (BKIA SM: -14.29%) capped more relative gains. Specialty IT Spanish travel reservation systems operator USD 9.8bn Amadeus IT Holdings (AMADF.PK SM: +1.29%) rose for another week, two weeks after a big private placement accounting for 6.7% of its shares outstanding.
- Across the developed Asia-Pacific universe, the IPOX Asia-Pacific 30 (IPTA) extended the weekly gains to a 4th week, gaining +0.09% to +17.56% YTD. The index spread versus benchmark MSCI Asia-Pacific (MXPC) rose to a massive +1224 bps. YTD, underlying the asset allocation potential of Asia-ex China aftermarket IPO/spin-off investing. Weakness in JP-domiciled portfolio member, including embattled IPOX heavyweight Financial Dai-Ichi Life (8750 JP: -4.31%), was mitigated by a great week in Australia's rail freight transport company QR National (QRNNF.PK AU: +5.37%). Other mid-caps rallied anew, including Japan's snack food maker USD 2.4bn Calbee (2229 JP: +2.09%) and cosmetics firm USD 2bn Pola Orbis (4927 JT: +2.39%), which closed at new post-IPO highs. Baby food and pediatric supplement maker Biostime International (1112 HK: +2.77%) continued its strong run.
- Having hit a post-IPO high of HKD 60.05 on Monday, Italian fashion maker and 2011 H.K. IPO USD 19.1bn Prada (1913 HK: -2.37%) retreated, while the Hong-Kong casino complex rose for another week. Recent H.K. IPO Japanese gaming company dividend heavy USD 1.2bn Dynam Japan (6889 HK: +7.02%) closed near its IPO price.
- Against the trend, China-linked IPOs rose strongly, with the IPOX China 20 (CNI: +0.89%) re-gaining all relative and absolute ground lost recently on benchmark HSCEI Enterprise (HSCEI: -1.59%) in just one week. USD 7.8bn 2009 IPO pharmacy distributor Sinopharm Group (1099 HK: +2.87%) rose anew on good corporate results, extending its gain since June 4 to +48.95%. Mainland China markets remained under pressure with the Shanghai Composite (SHCOMP: -1.08%) falling for another week on continued gloom over domestic economic prospects.
IPOX Long-Only Strategy Returns YTD 2012:
|Ticker (BBG/Reuters)||Week||Q2 12||YTD 12|
|IPOX Global 50 (IPGL50) (NYSEARCA:USD)||-0.05%||-8.13%||+13.58%|
|MSCI World (MXWD)||-0.37%||-6.35%||+8.30%|
|IPOX U.S. 100 (IPXO||-1.38%||-5.23%||+16.22%|
|IPOX U.S. 30 (IPXT)||-1.67%||-3.67%||+15.25%|
|S&P 500 (NYSEARCA:SPY)||-0.50%||-3.29%||+12.21%|
|IPOX Europe50 (IPXUJPEU) (EUR)||-1.40%||-10.75%||+2.05%|
|IPOX Europe30 (IXTE) (EUR)||-0.99%||-12.33%||-1.83%|
|STOXX 50 (SX5P) (EUR)||-1.68%||-3.16%||+6.91%|
|IPOX Asia-Pacific 30 (IPTA)||+0.09%||-5.69%||+17.56%|
|MSCI Asia-Pacific (MXPC)||-0.24%||-6.89%||+5.32%|
|IPOX China 20 (NYSE:CNI)||+0.89%||-8.97%||-2.31%|
|Hang Seng Enprs. (HSCEI)||-1.59%||-10.12%||-2.63%|
Most Significant IPOs Traded (Week 08/20/12):
|Company||Ticker||Return / IPO (%)|
|No significant IPOs priced and traded|
No significant IPOs priced and commenced traded during the last week.
The Week Ahead -- Getty Images Off The Block:
|No significant IPOs expected to priced and trade|
No significant global IPOs are lined up for the upcoming week. Notable is the acquisition of a majority interest in U.S. Q4 2012 U.S. IPO prospect Getty Images by USD 1bn Carlyle Group (CG: +0.24%) from private equity firm Hellman & Friedman LLC in a deal valuing the firm at USD 3.3bn.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.