FINdex Drops As Markets Fluctuate

10/25/2011 12:01:00 AM
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FINdex Drops As Markets Fluctuate

The FIN Fastener Stock Index dropped 16% in the third quarter of 2011, compared to a 14.7% decline by an index of related industrial stocks.

Only one FINdex company achieved a positive gain on its share price during the period. Chicago Rivet & Machine Co. stock gained 3.1% to $16.01 at the market close on September 30.

During a tough quarter that took its toll on the market, every other publicly-traded company with fastener holdings saw its shares decline — most by double digits.

Park-Ohio stock recorded the largest drop — 43.2% — to $12.01 for Q3. Alcoa and Stanley Black and Decker also suffered significant share declines of 30% or more.

For the first nine months of 2011, the FINdex dropped 8.4%, besting the 14.7% decline recorded by an index of related industrial stocks.

Four fastener companies recorded stock gains for the first three quarters of 2011: Carpenter Technologies, Fastenal, Grainger, and Precision Castparts.

Carpenter Technology stock rose 17.9% to $44.89 through September 30, as aerospace demand has proven resilient in a sputtering economy.

Fastenal has achieved a 12.8% increase in share value to $33.28 in 2011, while Grainger stock has grown 9.7% to $149.54 so far this year.

Precision Castparts turned in a solid performance as well, with its shares growing 11.7% in value to $155.46 during the first nine months.

The FINdex grew 8.3% during the first half of 2011, boosted by a 3.4% rise during the second quarter of 2011.

Industrial stocks proved a safe bet for investors in 2010, helping to drive up the FINdex 34% — its second straight year of gains of 30% or more. The 2010 FINdex nearly tripled the performance of an index of related industrial stocks, which increased 12.2% during the year. ©2011 GlobalFastenerNews.com