Global Equity Market Performance
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Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012 Global Equity Market Performance Global Equity Market Update Piper Jaffray Asia Capital Markets Group U.S. stocks rose last week, reversing losses on Friday, as a rally in J. West Riggs (Head of Asia ECM), [email protected], Tel: 852 3755 - 2333 JPMorgan Chase and speculation that China will boost stimulus Michael Cheung (Principal), [email protected], Tel: 852 3755 - 2323 measures tempered concern about earnings and the global economy. Lynne Wu(Analyst), [email protected], Tel: 852 3755 - 2325 Last week, the Dow rose less than 0.1% to close at 12,777.1 and the S&P 500 gained 0.2% to close at 1,356.8, while the NASDAQ was down by 1.0% to close at 2,908.5. Global Market Performance Performance (%) European stocks climbed for a sixth straight week, the longest winning streak in more than two years, anticipating that central bank policymakers will add to stimulus measures to support the Last price 1 day 1 week 1 month 2012YTD economy. National benchmark indexes rose in 12 of the 18 western European markets. Global Indices 12,777.1 1.6% 0.0% 2.2% 3.1% The Stoxx Europe 600 Index climbed 0.7% to 256.26 this week, for Dow Jones the longest stretch of gains since April 2010. 1,356.8 1.6% 0.2% 3.2% 6.2% S&P 500 The U.K.’s FTSE 100 increased 0.1% to close at 5,666.1, France’s 2,908.5 1.5% (1.0%) 3.2% 9.8% CAC 40 advanced 0.4% and Germany’s DAX rallied 2.3%. NASDAQ 5,666.1 1.0% 0.1% 3.3% (0.6%) FTSE Asian stocks fell, with the regional benchmark posting its largest Asian Indices weekly retreat since May, amid concerns that a slowdown in 19,092.6 0.4% (3.6%) 0.3% 1.1% economies from China and Korea to Australia will hurt corporate Hang Seng 9,237.0 0.8% (4.6%) (4.4%) (9.8%) profits. HSCEI 2,289.1 0.0% (1.7%) (5.8%) (0.7%) Last week, the MSCI Asia Pacific Index slid 2.8%, the largest weekly Shanghai A decline since the third week in May 2012 to close at 115.28, while the 8,724.1 0.0% (3.3%) 1.6% 3.2% Nikkei lost 3.3% to close at 8,724.1. Nikkei 225 Global Indices Performance (Rebased to 100) HK Weekly Market Update 200 Hong Kong shares ended their worst week in two months, as investors showed relief that a slowdown in China's economic 180 growth to 7.6% in the second quarter was not worse than expected. 160 Last week, the Hang Seng Index lost 3.6% to close at 19,092.6, while the HSCEI fell 4.6%, closing at 9,237. 140 Among index constituents, two gained and 47 declined. Among top 120 gainers, Sinopec Corp increased 1.6% and China Res Power gained 100 0.8%. Among losers, China Unicom slid 8.1%, Want Want China Corp fell 8.8% and Li & Fung declined 9.0%. 80 China's economic growth decelerated to its slowest pace since the 60 global financial crisis, damping hopes that the world's second 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 largest economy will provide much support for the faltering global S&P 500 NASDAQ FTSE Hang Seng Shanghai A outlook and prompting expectations that Beijing will make fresh moves to stimulate growth. China's GDP slowed to 7.6% year-over- year in the second quarter, down from 8.1% in the first quarter and representing its lowest level since early 2009. GDP was dragged down by a decline in exports due to the European crisis, stagnant HSI Sectoral Weekly Performance real estate investment and a slowdown in consumption. 0.0% (1.0%) HSI Weekly Performance (2.0%) (1.8%) 19,428.1 19,396.4 19,419.9 19,092.6 15 19,025.1 20,000 (3.0%) 10 19,000 (3.0%) (4.0%) (3.4%) 5 18,000 (4.0%) 5.4 4.9 5.6 6.1 4.9 0 17,000 (5.0%) 9-Jul-12 10-Jul-12 11-Jul-12 12-Jul-12 13-Jul-12 Utilities Property Comm/Indu Finance Turnover (in US$ billion) Close Source: DataStream, Reuters, Hang Seng Index Website 1 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012 Piper Jaffray China Index PJ China Index Performance Since January 2009 Sector Breakdown and Performance(1) Current Level: 1,140.9 Business Services and 3,000 Industrial Growth 21% Telecom, Media & 2,500 Technology 37% Health 2,000 Care 10% 1,500 Clean Tech/Energy 12% Consumer Financial/Real Estate 1,000 14% 6% 500 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 4.0% PJ China Index 0.8% Week-to-date change (38.12) -3.23% 0.0% 2012 Year-to-date change (36.47) -3.10% (1.6%) LTM change (860.35) -42.99% (4.0%) (3.3%) (3.4%) (3.4%) (3.5%) 6-month change (100.20) -8.07% Health Care Clean Tech/Energy 2012 Year-to-date high (pts) 1,426.45 27-Mar-12 Telecom, Media & Technology Business Services and Industrial Growth 2012 Year-to-date low (pts) 1,134.30 12-July-12 Consumer Financial/Real Estate Top Five Weekly Gainers and Losers 40.0% 15.4% 12.6% 12.4% 11.9% 20.0% 10.2% 0.0% (20.0% ) (12.7% ) (14.7% ) (16.7% ) (40.0% ) (20.5% ) (26.5% ) (60.0% ) (80.0% ) (100.0% ) China Ming Synutra Acorn Daqo New L&L Energy 7 Days Group Isoftstone Lentuo Vanceinfo Am bow Yang Wind International International Energy Holdings Holdings International Technologies Education Power Group Holding Note: (1) Sector Breakdown as of July 13, 2012; Sector Performance chart represents weekly percentage change (2) Piper Jaffray China Index is a modified market capitalization weighted index comprised of U.S. exchange listed securities of companies with significant exposure to the Chinese economy and market capitalization between US$100m and US$2b. The index was developed with a base level of 1,000 as of January 1, 09 (Please refer to the last page of this report for constituents) Source: Bloomberg 2 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012 Macro Indicators and Global Currencies Performance – Since January 2009 Gold (UBS-IB) Copper (NYC) CBOE Volatility Index (VIX) US$/oz US$/lb Current Level: US$1,588.44 per Current Level: US$3.459 per Current Level: 16.74 ounce pound 2,000 5 60 1,800 50 4 1,600 40 1,400 3 30 1,200 2 20 1,000 800 1 10 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 Spot WTI Crude Stowe Global Coal Index Baltic Dry Index US$/barrel Current Level: US$87.1 per Current Level: 3,196.66 Current Level: 1110 barrel 120 8,000 5,000 110 7,000 100 4,000 6,000 90 3,000 80 5,000 70 4,000 2,000 60 3,000 50 1,000 2,000 40 30 1,000 0 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29 -O ct -11 13-Jul-12 Euro Sterling Japanese Yen EUR/US$ GBP/US$ JPY/US$ Current Level: 1.225 Current Level: 1.5572 Current Level: 79.18 1. 6 1. 8 105 1. 5 1. 7 100 1. 4 1. 6 95 1. 3 1. 5 90 1. 2 1. 4 85 1. 1 1. 3 80 1. 0 1. 2 75 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 1-Jan-09 15-Sep-09 31-May-10 13-Feb-11 29-Oct-11 13-Jul-12 Source: DataStream, Reuters 3 Weekly Equity Capital Markets Newsletter Piper Jaffray Asia Securities Limited July 16, 2012 HK and U.S. China IPO Activity HK and U.S. China IPO Activity by Month 18 25,000 15 20,000 12 15,000 9 10,000 6 5,000 3 0 0 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-1 0 Feb-1 0 Mar-10 Apr-1 0 May-10 Jun-1 0 Jul-1 0 Aug-1 0 Sep-1 0 Oct-10 Nov-10 Dec-10 Jan-1 1 Feb-1 1 Mar-11 Apr-1 1 May-11 Jun-1 1 Jul-1 1 Aug-1 1 Sep-1 1 Oct-11 Nov-11 Dec-11 Jan-1 2 Feb-1 2 Mar-12 Apr-1 2 May-12 Jun-1 2 Jul-1 2 US China IPOs HK IPOs US C hina I P Os C apital R aised HK I P Os C apital R aised U.S.