After two consecutive years of double-digit growth, the FIN Fastener Stock Index contracted in 2018, hampered by volatility that dominated the markets, making 2018 the worst year for stocks in a decade.

The FINdex declined 7.1% during the year, compared to a 7% drop by an index of related industrial stocks.

U.S. stocks had their worst December since the Great Depression, according to Yahoo Finance. The Dow Jones Industrial Average fell 9.7%, the Nasdaq Composite dropped 10.4%, and the S&P 500 declined 10%.

During 2018, industrial fastener stocks replaced aerospace stocks as the dominant performer.

FINdex stocks achieving growth during the year included Dorman Products (up 47.2%); Bisco Industries (up 87.2%); Grainger (up 19.5%); Lawson Products (up 27.7%); TriMas (up 2%); and Wesco Aircraft (up 6.8%).

During 2018, multiple FINdex stocks saw declines of 20% or more, including Arconic (down 38.1%); Carpenter Technology (down 30%); ITW (down 24%) MSC Industrial (down 20.4%); Park Ohio (down 33.2%); Stanley Black & Decker (down 29.4%); and Tree Island Steel (down 20.5%).

During the final quarter of the year, the FINdex mirrored the markets, showing its biggest dive during the year. During Q4, the FINdex dropped 15.6%, compared to a 13.4% decline by an index of related industrial stocks.

FINdex stocks losing 20% or more in value during Q4 included Carpenter Technology (down 39.6%); Grainger (down 21%); Park Ohio (down 20%); Simpson Mfg. (down 25.3%); and Wesco Aircraft (down 29.5%).

The FINdex rose 9.2% in the third quarter after declining 0.4% in the previous quarter. An index of related industrial stocks increased 9.8% in Q3. Quarterly gains were achieved by a broad cross-section of fastener companies.

During the first six months of 2018, both the FINdex and an index of related industrial stocks were essentially unchanged. The FINdex achieved marginal growth of 0.3% in the opening quarter of 2018, compared to an 11.7% loss by an index of related industrial stocks.

During 2017, the FINdex rose 20.2%, boosted by aerospace fastener company gains. Aerospace fastener supplier KLX – the former B/E Aerospace fastener division – achieving a 51% increase in share price, driven by sales to commercial aerospace manufacturing customers.

Another FINdex winner during 2017 was Arconic – the former Alcoa Fastening Systems and Rings business, which achieved a 47% increase in its share value.

In 2016, the FINdex rose 20%, compared to an 11.1% increase by an index of related industrial stocks.

For the last decade of financial coverage, FIN Subscribers can visit the FIN Stock Review section of GlobalFastenerNews.com.