IPOX Schuster LLC


IPOX Global Indexes Weekly Review for 05/26/08

English Version

Some notable events from the week of 05/26/08:

1).  IPOX Global follows weak global markets lower.  The IPOX Global Indexes continued to fall for a second week, in line with the major world benchmarks. Declines were centered around companies that previously had strongly outperformed, such as Basic Materials (KAZ LN) or select Alternative Energy Stocks (FSLR US).

2).  Weakness in HK-traded Chinese H-shares did not help the negative sentiment, with the IPOX China 20 Index losing -3.54% on the week. IPOX Global and IPOX U.S. constituents Continental Resources (CLR US) and Sandridge Energy (SD US) continued their strong momentum on the back of better than expected (oil) production numbers.

3).  Utilities and special situations exposure drive strong outperformance of IPOX Europe.  Bidding activity for IPOX Global and IPOX Europe constituent Deutsche Postbank (DPB GR) helped to support the IPOX (Europe) universe, while French mega-cap Electiricite de France (EDF FP) rose against the market trend. EUR 120bn EDF FP, which will see its stock split shortly, has now added 27.2% since hitting a one-year low toward March option expiration, still recording a loss of 15.12% YTD. Most European Alternative Energy companies rose, with IPOX Constituents QCells (QCE GY) and EDF Energies Nouevells (EEN FP) being the main beneficiaries.

4).  As Global Markets recover, the list of brand-name IPO candidates increase
These include Deutsche Bahn (expected to trade in November 2007, on the back of the Deutsche Bahn announcement, Swissrail and the Russian Railway have announced that they may consider “going public”), the Mexican Stock Exchange (the Mexican Stock Exchange Operator), EDP Renewables, Safaricom or Posco Engineering and Construction.

Filed under News