New Energy Finance's Global Energy Innovation Index (GEIX) soared 19.9% during Q3 2005. The "Kyoto Effect", whereby clean energy companies quoted on markets in countries that ratified the Kyoto Protocol outperform those in countries that did not, widened from 47.2% in Q2 to 66.6% in Q3.
The GEIX tracks the stock-market performance of the largest 50 pure-play clean energy companies in the world, was launched at the start of the year at a value of 1000. It closed Q3 2005 at 1325.0, up 32.5% on the year and up 19.9% on the quarter.
Top-performing sectors during the quarter were solar (up 39.0%), Wind (up 23.5%), Biofuels Biomass & Waste (up 18.2%) and Efficiency (up 17.3%). The least strong sectors were Hydrogen & Fuel Cells (up 5.8%) and Electricity Storage (down 3.5%).
Biggest gainers during the quarter were Capstone Turbine (up 174.9%), Rentech (up 91.0%) and Distributed Energy Systems (up 75.4%). Biggest losers were ITM Power (down 16.3%), Ultralife Batteries (down 24.1%), Power-One (down 25.4%) and Exide Technologies (down 35.9%).
The quarter saw a continuance of the "Kyoto Effect", whereby companies quoted on markets in countries that ratified the Kyoto Protocol have outperformed those quoted in countries that did not by a considerable margin. As at the end of Q2 2005 the difference was 47.2%. By the end of Q3 it had widened to 66.6%.
The strongest-performing markets worldwide for clean energy stocks so far in 2005 have been Frankfurt (up 168.9%), Copenhagen (up 98.6%) and London's AIM (up 34.9%). The weakest have been the NASDAQ (up 3.4%), AMEX (up 7.1%) and NYSE (up just 0.2%).
About New Energy Finance
New Energy Finance is a specialist provider of news, data and analysis to investors in the renewable energy and energy technology sectors worldwide. The company is based in London and headed up by Michael Liebreich. New Energy finance covers all types of investment activity, including venture capital, public markets, M&A and project finance, and all types of renewable and low-carbon energy technologies.
About the GEIX
The GEIX is a currency-neutral way of summarising the performance of quoted companies in renewable energy and energy technology. It is based on the market performance of the 50 largest companies quoted around the world which derive at least half of their market value from activities in renewable energy and low-carbon energy technology (excluding nuclear). Weighting is based on market capitalisation, with no cap, and rebalancing takes place quarterly. The value of the GEIX was set at 1000 on 1 January 2005.