8/26/2015 1:30:00 AM
NEWS BRIEFS
Fastener Stocks Weathering “China” Market Correction
The “market correction” roiling international investors related to a slowdown in China has largely missed the fastener industry.
“Investors cited more worries that a slowdown in China could hobble global growth, even after the country’s central bank cut interest rates on Tuesday for the second time in two months,” Reuters reports. “The move came after Chinese stocks slumped 8% on Tuesday, on top of an 8.5% drop on Monday.”
The “market correction” roiling international investors related to a slowdown in China has largely missed the fastener industry.
“Investors cited more worries that a slowdown in China could hobble global growth, even after the country’s central bank cut interest rates on Tuesday for the second time in two months,” Reuters reports. “The move came after Chinese stocks slumped 8% on Tuesday, on top of an 8.5% drop on Monday.”
The “global market meltdown” has put pressure on oil prices, now at their lowest since the global recession of 2008.
But public companies with fastener segments have largely escaped the fallout – for now.
The 19 companies tracked by the FIN Fastener Stock Index have lost 3.3% of their collection value since the market close of August 21.
By comparison, an index of related industrial stocks fell 4.8% during the same period.
Publicly-traded fastener companies losing at least 5% of their value include Alcoa (down 6.9%), Carpenter Technology (down 5.9%), Fastenal (down 5.5%), Nucor (down 6.5%), Park-Ohio (down 8.9%), Simpson Mfg. (down 5.2%) and Stanley Black & Decker (down 6.4%).
Fastener companies gaining share value during the market turmoil include Chicago Rivet (up 1.6%), KLX Inc. (up 3.8%) and Tree Island Steel (up 7.9%).
The FINdex fell for a second consecutive quarter at the end of June, dropping 7.4% in the second quarter of 2015. A comparative index of related industrial stocks declined 0.4% during Q2.
During the first half of 2015, the FINdex dropped for a second consecutive quarter at the end of June, dropping 13.8%. A comparative index of related industrial stocks grew 1.5% during the first six months of 2015.
The 19 companies tracked by the FIN Fastener Stock Index have lost 3.3% of their collection value since the market close of August 21.
By comparison, an index of related industrial stocks fell 4.8% during the same period.
Publicly-traded fastener companies losing at least 5% of their value include Alcoa (down 6.9%), Carpenter Technology (down 5.9%), Fastenal (down 5.5%), Nucor (down 6.5%), Park-Ohio (down 8.9%), Simpson Mfg. (down 5.2%) and Stanley Black & Decker (down 6.4%).
Fastener companies gaining share value during the market turmoil include Chicago Rivet (up 1.6%), KLX Inc. (up 3.8%) and Tree Island Steel (up 7.9%).
The FINdex fell for a second consecutive quarter at the end of June, dropping 7.4% in the second quarter of 2015. A comparative index of related industrial stocks declined 0.4% during Q2.
During the first half of 2015, the FINdex dropped for a second consecutive quarter at the end of June, dropping 13.8%. A comparative index of related industrial stocks grew 1.5% during the first six months of 2015.
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