United States of America
Criteria for index admission
S&P 500
S&P 500® index was first
published in 1957
Represents 75% of US equities
Over $4.8T is benchmarked to
the S&P 500
Most recent change
Added: LyondellBasell
Deleted: Sears Holdings
•US Company
•Market Cap > $4B
•Public float of at least 50%
•Financial Viability
•Adequate liquidity and
reasonable price
•Sector representation
•Company type
S&P 500 (1 July 2008 – 30 June 2012)
Sector Breakdown 10-Sept-2012
Index Characteristics 10-Sept-2012
Top 10 by Market Cap: Apple, ExxonMobil, IBM, Microsoft, GE, Chevron, AT&T, P&G, J&J, Wells Fargo
Source: Ryan Yanaro, HEC Paris MBA, Sep 2012; http://www.google.com/finance?q=INDEXSP%3A.INX&ei=YB9PUOihIeSFwAOI3QE;
http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500-usduf--p-us-l-HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
1
INDIA: Bombay Stock Exchange
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“Bombay Stock Exchange” or “BSE”, established in 1875 is the oldest stock
exchange in Asia.
Sixth largest stock exchange in Asia (Aggregated market cap: US$ 1 Trillion, as
of December 2011)
5,133 listed Indian companies (as of March 2012)
Key index is BSE SENSEX, also called BSE30 or SENSEX:
•
Free-float market capitalization-weighted stock market index of 30 wellestablished and financially sound companies listed on BSE
SENSEX (1 Jul 2008 – 30 Jun 2012)
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2008: (-52%) One of the worst years for markets globally, due to recession in US, credit crunch and collapse
of Lehman
2009: (+81%) 2nd best year for Indian equities ever. Government slashed taxes and opened the floodgates of
liquidity, boosting morale that brought back global investors
2010: (+17%) Robust economic growth, record overseas investment (up 61% for the year)
2011: (-25%) Slowdown in the Indian economy, high inflation, depreciating currency, corruption cases against
the government, and rising concerns over Europe’s debt crisis made India one
of the
worst
performing
Source:
Google
Finance,
Wikipedia, Factiva
markets globally
EC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 |
Suchit Saraf
| suchit.saraf@hec.edu
2
SPAIN STOCK EXCHANGE
Bolsa de Madrid
• “Bolsa de Madrid” is the major stock exchange of
Spain.
• Established in 1831.
• 1.477 listed companies at December 31, 2001.
• Total market capitalization at May, 2007 was
€1,276.26 billion.
IBEX35
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Market capitalization weighted index comprising the 35 most liquid Spanish stocks
traded in the Madrid Stock Exchange General Index, which are reviewed twice
annually.
Established on January 14, 1992
Currently composed of 36 companies.
http://en.wikipedia.org/wiki/IBEX_
1 July 2008 – 30 June 2012
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•
•
http://en.wikipedia.org/wiki/Bolsa_de_Ma
drid
http://www.bolsamadrid.es/ing/portada.h
tm
35
All time maximum of 15.945 reached on November 8, 2007 (construction and
real state)
Lehman Brothers effect: largest 1d fall of 9.14% on October 10th, 2008; losses of
21% in 5 consecutive days in October and decline of 39.4% in 2008.
Maximum rise of 14.43% on May 10th, 2010: European bail-out approval.
http://es.wikipedia.org/wiki/IBEX_35
Source: Marc Ferrer Capdevila, HEC Paris MBA, Sep 2012
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
info@sincosinco.com | www.sincosinco.com
S&P CNX Nifty
Description
The S&P CNX Nifty is the headline index on the National Stock Exchange of India
Ltd. (NSE).
It includes 50 of the approximately 935 companies listed on the NSE, captures
approximately 60% of its equity market capitalization and is a true reflection of the
Indian stock market.
The S&P CNX Nifty covers 22 sectors of the Indian economy
S&P CNX Nifty historical movements from July 01, 2008 to June 30, 2012
http://www.google.com/finance/historic
al?cid=207437&startdate=Jul+01%2C+
2008&enddate=Jun+30%2C+2012&nu
m=30&ei=7MRPUNDhOMqYwQO-Aw
Source: Rahat QAZI, HEC Paris MBA, Sep 2012
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
info@sincosinco.com | www.sincosinco.com
CAC 40: -26% between 01/07/2008 and 30/06/2012 (max 4539; min 2519)
5000
2008
15/09/2008: Lehman
Bothers
4500 bankruptcy
puts the world of
finance under shock.
4000
13/10/2008: EU ready to
mobilize €1700B to save
its financial system.
3500
2009
2010
12&13/11/2010: At Seoul's G20
Ireland's declarations regarding
its good health meet
scepticism. A preservation plan
will be announced in response
to growing speculation.
07/12/2009: the rating
agencies downgrade
Greece's credit rating;
this is the kickoff of the
European debt crisis.
09/02/2010: EU's
first preservation
plan for Greece.
11/12/2008: Madoff's $50B
Ponzi scheme revealed.
3000
2500
2000
08/04/2011: Libyan
crisis; the barrel of
Brent reaches 126$.
10/05/2010: Joint action
of the central banks.
29/10/2009: the US GDP
returns to growth.
09/03/2009: CAC40 reaches
its lowest level since March
2003. On March 10 US
Secretary of Treasury
announces a massive plan to
buy toxic assets from banks:
worldwide bounceback of
stockmarkets.
2012
2011
16/06/2011: 6 weeks
downwards due to
worries on Greece's
crisis contagion.
16/03/2011: Fukushima.
27/08/2010: FED
discloses its QE2 plan.
10/08/2011: FED contains the
2011 summer crisis. During this
crisis EU's plan for Greece did
not convince the markets, the
debt crisis spread to Italy and
Spain and US lost AAA rating.
13/01/2012:
France loses
AAA rating.
21/12/2011:
BCE 1rst LTRO.
29/06/2012:
UE's measures
for growth and
banking union.
20/04/2012: 5
weeks
downwards due
to Spain's
situation and US
jobs creation.
Matthieu GASNOS
S&P 500 Performance 2008-2012
Source: Ryan Rastegar, HEC Paris MBA, Sep 2012
HEC Paris MBA Sustainable Investment Masterclass 19 – 22 September 2011 | graham.sinclair@sinclairconsult.com | © SinCo 2011
SLID 1: [Hong Kong Stock Exchange]
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Hong Kong Stock Exchange (SEHK) was formally established in 1891.
Third largest stock exchange in the Asia, sixth largest in the world (with a
combined market cap of HK$16.985 trillion)
As of Nov. 30, 2011, 1,477 listed companies, divided into 1st & 2nd Section,
and ”Mothers”h
Hang Seng Index (HSI) is the major index, which was started on Nov. 24,
1969. The components of the index are divided into four sub-indexes:
Commerce and Industry, Finance, Utilities, and Properties. The index was
developed with a base level of 100 as of July 31, 1964
HSI (1 July 2008 –
30 June Dec 2012)
http://www.google.com/finance?q=INDEXHANGSENG%3
AHSI&ei=spJPULDPCuaIwAPVNQ
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After passing the 30,000 point milestone on Oct. 18, 2007, the index was 31,958.41 points during trading and
31,638.22 points at closing on Oct. 30, 2007 .
After Oct. 30, 2007, the index kept falling. On Oct. 27, 2008, it further fell to 10,676.29 points, having fallen
nearly two-thirds from its all-time peak.
The index passed the 20,000 point milestone again to 20,063.93 on 24 July 2009. As of the 13th of July, 2012
the index is hovering around 19,000 to 20,000 points.
Source: Peina Wang, HEC Paris MBA, Sep 2012
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
7
IPC^MXX - Mexico
Founded in 1886
The Mexican Stock Exchange (BMV) is a public institution that operates under
a concession granted by the Ministry of Finance (SHCP), observing
the Mexican Securities Law.1
Main Index: IPC Índice de Precios y Cotizaciones
Number of listed companies: 135
Volume
Adj Close
1,200,000,000
1,000,000,000
800,000,000
600,000,000
400,000,000
200,000,000
-
08/07/2008
08/07/2009
08/07/2010
08/07/2011
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
-
1 About BMV (2007). Retrieved September 11, 2012, from http://www.bmv.com.mx/wb3/wb/BMV/BMV_acerca_de_la_bmv
Carlos Tejada
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
8
Task 6 – CAC 40 / Paris Stock Exchange
CAC 40 from July 2008 to July 2012
5000
4500
4000
3500
CAC 40
3000
5/1/12
3/1/12
1/1/12
9/1/11
11/1/11
7/1/11
5/1/11
3/1/11
1/1/11
9/1/10
11/1/10
7/1/10
5/1/10
3/1/10
1/1/10
9/1/09
11/1/09
7/1/09
5/1/09
3/1/09
1/1/09
9/1/08
2000
11/1/08
2500
7/1/08
Paris Stock Exhange :
created in the 1500’s as Lyon Bourse,
Paris Bourse was officially recognised in
1801
2nd largest in Europe after London Stock
Exchange with $1.2 trillion market cap
and 586 listings
CAC 40 Index:
- Selected from top 100 market cap and most
active listed equities
Key dates:
- 15/09/2008 : Fall of Lehman Brothers ) start of decline of stock values
- 13/10/2008: Announce from EU of €1700B rescue package
- 03/03/2009: CAC 40 Index at its lowest since 2003
- 07/12/2009: Downgrading of Greece rating
- 09/02/2010: First rescue plan for Greece
- 16/03/2011: Fukushima
- 10/08/2011: US looses AAA rating
- 13/01/2012: France looses AAA rating
Source: Rym Sullivan, HEC Paris MBA, Sep 2012
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
Shohei MAEKAWA
NIKKEI 225
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The Nikkei, more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average, is a stock
market index for the Tokyo Stock Exchange (TSE).
It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a priceweighted index (the unit is yen), and the components are reviewed once a year.
Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow Jones
Industrial Average.
http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=13412952000
00&chddm=359532&chls=IntervalBasedLine&q=INDEXNIKKEI:NI225&ntsp=0&ei=qc1PUIDnMcP3wAPSwgE
http://en.wikipedia.org/wiki/Nikkei_225
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
10
S&P 500 Performance (July 1, 2008 – June 30, 2012)
1600
S&P 500 Index Performance
1400
S&P 500 (Standard and Poor’s Index)
is a market cap weighted index of the
largest 500 companies domiciled in
the United States. It is widely
considered the best representation of
US equity markets.
1200
800
Year
2008
2009
2010
2011
2012
600
400
200
Return
Ann. Vol
Return
-29.43%
23.45%
12.78%
0.00%
6.66%
Annualized
Vol
53.74%
27.28%
18.05%
23.27%
13.36%
Cummulative Period
1.57%
28.10%
5/1/12
3/1/12
1/1/12
11/1/11
9/1/11
7/1/11
5/1/11
3/1/11
1/1/11
11/1/10
9/1/10
7/1/10
5/1/10
3/1/10
1/1/10
11/1/09
9/1/09
7/1/09
5/1/09
3/1/09
1/1/09
11/1/08
9/1/08
0
7/1/08
Index Level
1000
Source: Standard and Poor’s website
Daniel Georges
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
Mapping of the performance of the stock market index
Nikkei 225 (1 July 2008 – 30 June 2012)
http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=13409496
00000&chddm=356307&chls=IntervalBasedLine&q=INDEXNIKKEI:NI225&ntsp=0&ei=9mdQUICUI8SswAPoFg
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2008 Worst decline (-42.1%) due to Lehman Shock
2011 Big decline (-13.9%) in March due to the earthquake/tsunami/nuclear
2012 Basically below 10.000 JPY due to the strong yen
Source: Yukihiro Yoshida, HEC Paris MBA, Jan 2012
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
12
Major stock index in JAPAN:
Nikkei225
• Provider: Nikkei inc (Newspaper publisher)
• Components:
225 companies listed on the Tokyo Stock Exchange 1st
section
• Unit: Yen (Averaged price weighted)
cf. Dow Jones Industrial Average
Lehman shock
Tohoku earthquake
SAKAMOTO Atsuki (HEC Paris MBA, Class of 2013)
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
Ian Sessions
S&P 500: United States
Performance (July, 2008 – June, 2012 ):
http://www.google.com/finance?chdnp=1&chdd=1&chds
=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chd
et=1341000000000&chddm=396083&chls=IntervalBas
edLine&q=INDEXSP:.INX&ntsp=0&ei=j1FPUOCwD6L3
wAPH2gE
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Founded in 1957
Stock market index based upon the prices of the common stock of 500 of
the top publically traded American companies
Index maintained by Standard and Poor’s
Components of S&P 500 are selected by a committee:
• Should be representative of industries in the United States economy
• Must have publically traded common stock
• Companies must have sufficient liquidity
Return of 6.55% from July, 2008 – June, 2012
Sources: Google Finance
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
14
PPT2: [ CHINA –Shanghai Stock Exchange - ]
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“Shanghai stock exchange” or “SSE” for short was established in June 1866.
1990 - The present Shanghai Stock Exchange re-opened on November 26 and began
operation
2001-2005 - A four-year market slump which saw Shanghai's market value halved,
after reaching a peak in 2001. A ban on new IPOS was put in April 2005 to curb the
slump
Shanghai composite index (1 Jul 2008 – 1 Jun 2012)
http://www.google.com/finance/historical?cid=7521596&startdate=July
+1%2C+2008&enddate=june+1%2C+2012&num=30&ei=HzJQUNDtNO
aIwAPVNQ
•
2008 - Speculative traders made China's stock exchange temporarily the world's second largest in terms of
turnover , reaching an all time high of 6,124,044 points on October 16,2007, the benchmark SCI ended 2008
down a record of 65% due to 2008 global financial crisis.
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2009 Showed signs of recovery (15% increase) but weak compared to previous year.
2010 Agricultural Bank of China completed the world’s largest IPO to date worth US$22.1 billion
Source CAI ZIilan, HEC Paris MBA, Sep 2012
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
15
US: S&P500 Performance: Jul 2008 – Jun 2012
Source: Google Finance
Steven Southwick.
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
China – Shanghai Stock Exchange
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The Shanghai Stock Exchange (SSE) was founded on Nov. 26th,1990 and in
operation on Dec.19th the same year.
As at the end of 2010, SSE boasted 1,500 listed securities and 894 listed companies,
with a combined market capitalization of RMB 17,900.724 (EUR 2,196.19) billion and
a total of 98.51 million trading accounts.
The SSE index was also impacted by the 2008 crisis but only decreased 24%.
Although the market has recovered faster than any other market, the Chinese stock
market is famous for it’s unpredictability due to large amount of “day traders”.
Adj Close of SSE Index*
4000
3500
3000
2500
2000
1500
1000
500
0
Adj Close
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
Rick Shi
17
PPT2: India- Bombay Stock Exchange
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“BSE” was founded in 1975; Oldest stock exchange in Asia
Market Cap: US$1 trillion (as of Dec 2011)
5,133 listed companies
Key main index: BSE SENSEX, “BSE 30”
BSE 30 (1 July 2008 – 30 June 2012)
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2008 Loss of -52% seen this year due to the recession seen in the US
2009 Significantly better(80% increase) : Improved sentiments, new government formation
2010 Up slightly(17%) because of signs of economic growth
Source: Prerna Sabarwal, HEC Paris MBA, Jan 2011
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
18
UK – London Stock Exchange
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Established in 1801
4th largest exchange in the world, with aggregated market cap of $5.9
trillion
2,520 listed companies
Major indices: FTSE 100, FTSE 250, FTSE 350, FTSE Small Cap, FTSE
All Share
FTSE 100 (1 Jan 2008 – 31 Dec 2010)
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2008-09: 31.3% decrease between 1/1/08 and 31/12/08; signs of recovery in 2009 (18.5% increase)
2010: continued recovery – 7.5% increase
2011-12: increased volatility due to ongoing Eurozone crisis; roughly flat over the period (3.3% total
decrease)
Source: Yahoo! Finance, LSE Website, Wikipedia
HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |
Robert Moore
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