New Energy Index - NEX - Weekly Update

Posted by Tim

March 19, 2008

Once again it is time for the the update of last week’s performance of the New Energy Index-NEX. The NEX covers about 90 global renewable energy companies in 7 sectors. The NEX is the benchmark for the PowerShares Global Clean Energy Fund ETF (PBD: 10.85 +0.07 +0.65%).

Last week NEX ended the week at a positive 0.4%, pretty much matching the S&P 500 and NASDAQ. The “other” renewable sector was tops with a plus 2.2%. This sector is mainly mini-hydro and geothermal development. Wind energy was up 1.3% and solar energy pushed back positive 0.4%. Solar had been taking a beating in the previous few week, but last week some of the China solar companies had a nice positive bounce (see below).

Power storage was the dog sector for the week, down 2.6%, let down by the French battery maker Safte.

NEX and PBD seem to currently be tracking the overall market. Longer term, renewable energy should outperform the overall market, but that will probably wait until investors turn more positive overall. Now the winners and loser from the index last week:

NEX top gainers since 11/03/08
JA Solar Holdings JASO + 18.6%
LDK Solar LDK + 16.7%
Yingli Green Energy Holding YGE + 16.7%
American Superconductor AMSC + 13.3%
Sechilienne Sidec SECH + 13.1%

NEX top losers since 11/03/08
Schmack Biogas SB1 - 22.3%
Zhejiang Yankon Group 600261 - 16.1%
Saft Groupe SAFT - 13.5%
Aventine Renewable Energy Holdings AVR - 13.1%
Comverge COMV - 12.9%

Note: I currently do not have a position in PBD.