Basic chems, polymers and diversifieds drive new stock index down in Q2

07 June 2012 17:43  [Source: ICIS news]

LONDON--A weaker share performance from basic chemical and commodity polymer producers and the large diversified chemical companies have helped drive down the newly launched Valence Global Chemicals (VGCI) composite index, data from the specialist investment bank showed on Thursday.

The Valence Group has launched a series of chemicals stock indices which chart the share price performance of 250 public chemical and materials companies. The composite index can be broken down along 33 product and functional sectors or company classifications, the bank says.

According to the latest data, the basic chemicals & commodity polymers sub-index is down 15.74% from the start of the second quarter. The large diversifieds index is down 14.29% while the Valence composite index is down 6.38%.

Valence says that the VGCI is an aggregate of about 250 chemical companies. Companies with an equity value of less then $100m (€80m) have generally been excluded as have firms with limited stock liquidity. The investment bank says that each sub-sector index is on an even-weighted basis and includes companies from all regions.

“Chemicals sub-sector indices with this level of granularity have not previously existed,” Valence Group partner Peter Hall said in a press statement.

“They provide highly accessible insights into the performance of this complex industry at a much more detailed level than just ‘commodity’ and ‘specialty’ – increasingly meaningless phrases. They also provide a great leading view on what is happening on the manufacturing floors around the world and are a great bellwether for the economy as a whole,” he added.

($1 = €0.80)

By: Nigel Davis
+44 20 8652 3214

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