IPOX Indexes Weekly Summary
· After option expiration, IPOX Indexes lag as global risk spikes. China-linked exposure plunges anew.
· IPOX-U.S. linked ETF (NYSEARCA:FPX) retreats on broad weakness as investors take profits after earnings.
No significant deal flow lined up.
IPOX Returns, Notable Company Movers:
· All IPOX Indexes fall, IPOX China (NYSE:CNI) outperforms: Amid a spike in global risk with the VIX U.S Volatility Index (VIX: +13.72%) surging and profit taking after the big run-up, all IPOX Indexes retreated on the week. On the global level, the IPOX Global 50 (IPGL50) Index lost -1.75% to +4.26% YTD, -129 bps. more than benchmark MSCI World (MXWD). Weakness was broad-based and extended across the IPOX regions: In the U.S., the IPOX-linked First Trust U.S. IPO Fund (fund ticker: FPX) shed -1.43% to +8.45% YTD with worldwide hotel operator Marriot International (MAR US: -14.39%), cloud-related Fusion-IO (FIO US: -9.48%), residential mortgage service producer Nationstar Mortgage (NSM: -9.38%) or electric carmaker Tesla Motors (TSLA: -5.71%) in focus. While social network operator heavyweight Facebook (FB: -4.18%) retreated anew on secondary stock selling, discount retailer Dollar General (DG: +2.22%), vitamin retailer GNC (GNC: +5.67%), Solarcity (SCTY: +2.55%), Burger King Worldwide (BKW: +8.50%) or HomeAway (AWAY: +13.11%) bucked the weakness. Profit taking also pressured the IPOX Europe, with the IPOX Europe 30 (IXTE: +0.06%) lagging. Amid the revival in the European IPO market with Germany's private-equity backed chemicals company and DAX-30 candidate EURbn 14 Evonik Industries reviving plans for an April 2013 IPO, IPOX Europe's German-domiciled heavyweights Brenntag (BNR GY: +0.36%) and takeover candidate Kabel Deutschland (KD8 GY: +1.90%) hit a new weekly post-IPO high. Big moves across Asia-Pacific markets caused the IPOX Asia-Pacific (IPTA: +0.15%) to also lag benchmarks. While China-linked exposure slumped, Japan continued to trade firm on perceived policy actions. Amongst IPOX's Japanese exposure, snack-food maker USDbn 2.9 Calbee (2229 JT: +4.09%) closed the week at yet another fresh post-IPO high. Strong earnings from IPOX Asia-Pacific heavyweight Italian fashion maker Prada (1913 HK: +5.63%) underline the positive momentum in the luxury retail space. Notable is the continued slide in China-linked exposure with the FTSE China 25 (XIN0I: -4.35%) extending the three-trading week drop to a big -7.43%. While outperforming the benchmark, big declines in Financial stocks including broker CITIC Securities (6030 HK: -10.37%) or Ag Bank of China (1288 HK: -5.44%) also contributed to a slump in the IPOX China 20 (CNI: -3.09%). Longfor Properties (960 HK: +1.94%) rose against the trend. Amid a Goldman-Sachs (GS US)- led secondary offering aimed at increasing liquidity, China luxury retail shopping site operator Sequoia-backed USDbn 1.2 VIP Shop (VIPS US: -1.93% and +444.0% gain based on the first close) - one of only two IPOs of a U.S. IPO in 2012 - held most of its spectacular post-IPO gains last week.
· IPOX Indexes Comparative Price Returns:
|Ticker (BBG/Reuters)||Week||2012||YTD 13|
|IPOX Global 50 (IPGL50) (NYSEARCA:USD)||-1.75||24.17||4.29|
|IPOX Global 30 (IPGL30)||-1.83||19.57||5.61|
|MSCI World (MXWD)||-0.46||13.44||4.10|
|IPOX U.S. 100 (IPXO)||-1.43||29.17||8.45|
|IPOX U.S. 30 (IPXT)||-0.99||28.86||7.50|
|S&P 500 (SPX)||-0.28||13.41||6.27|
|IPOX Europe 50 (IPXUJPEU) (EUR)||-0.31||6.09||5.22|
|IPOX Europe 30 (IXTE) (EUR)||0.06||0.03||5.73|
|STOXX 50 (SX5P) (EUR)||0.41||8.78||2.15|
|IPOX Asia-Pacific 30 (IPTA)||0.15||28.77||4.36|
|MSCI Asia-Pacific (MXPC)||1.31||10.97||4.89|
|IPOX China 20||-3.09||19.53||3.83|
|IPOX China Cp. (IPXUCHCP)||-4.60||18.93||1.88|
|FTSE China 25 (XIN0I)||-4.35||13.48||-2.46|
|Why choose IPOX to close the IPO/spin-off asset allocation gap?|
|§ Proven: Real-time performance over market cycles|
§ Scalable and Stable: Clearly defined Philosophy
§ Patented: Portfolio Construction Technology
· Notable IPOX Indexes Movers:
|U.S. 100||Marriott Vac.||Small||-14.39||VAC US|
|Global 50||Citic Securities||Large||-10.37||6030 HK|
|U.S. 100||Fusion-IO||Small||-9.48||FIO US|
|Global 50||Yandex||Mid||-8.03||YNDX US|
|Global 30||Large||-4.18||FB US|
|U.S. 100||HomeAway||Small||+13.11||HOME US|
|U.S. 100||SSN&C||Small||+11.58||SSNC US|
|Global 30||Prada||Large||+5.63||1913 HK|
|Asia-Pacific||MGM China||Mid||+2.05||2282 HK|
Upcoming global IPOs (Week: 02/25/2013):
|Roma Group||8072 HK||02/25||Priced just above low end.|
Roma Group (8072 HK) is a micro-cap provider of valuation and advisory serviced related to natural resources. The firm seeks to sell 25% for HKDm 100 to expand its R&D efforts.
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.