Australian cleantech stocks lose ground as China’s surge

The Australian CleanTech Index fell slightly in August 2014 and underperformed both the Small Ordinaries and the ASX200, comparatively the China CleanTech Index recorded an 8.8 per cent gain.

The Australian CleanTech Index fell from 38.9 to 38.6 over the month of August recording a 0.8 per cent loss compared to an S&P ASX200 loss of 0.1 per cent and the S&P ASX Small Ordinaries Index gain of 2.1 per cent.

The China CleanTech Index rose from 43.01 to 46.79 over the month, compared to the NEX gain of 5.9 per cent, the CTIUS gain of 2.7 per cent, the Shanghai Composite gain of 0.7 per cent and the MSCI gain of 2.0 per cent.

The Australian CleanTech 20 recorded a 0.9 per cent loss and the China CleanTech 20 recorded a gain of 8.7 per cent over the month.

Australia

In the Australian CleanTech Index the best performing sub-indices were the ACT Environment Index with (+ 33.0 per cent), the ACT Solar Index (+13.0 per cent). The two weakest sub-indices through August were the ACT Waste Index (-7.0 per cent) and the ACT Geothermal Index (-1.8 per cent).

The market capitalisation of the 65 stocks in the Australian CleanTech Index is A$15.2 billion falling from its peak of $16.3 billion in July 2007 but up from its low of A$6.2 billion in July 2012.

Eight companies with losses of more than 10 per cent, including Quantum Energy, Eden Energy and Greenearth Energy, drove the month’s performance. Transpacific Industries, Mighty River Power and Tox Free Solutions recorded the greatest market capitalisation losses. These losses were partially offset by 16 companies recording gains of more than 20% led by Actinogen, SWW Energy Limited and CMA Corporation.

China

The best performing sub-indices for the month were the China Efficiency Index with a 13.0 per cent gain and the China Storage Index with an 11.6 per cent gain. The two weakest sub-indices through August were the China Waste Index (-4.5 per cent) and the China Water Index (-5.5 per cent).

The market capitalization of the 164 stocks in the China CleanTech Index sits at CNY ¥1.11 trillion, up a long way from its trough of CNY ¥604 billion in November of 2012.

China Industrial Waste Management Inc., RINO International Corporation and CleanTech Innovations Inc. were among 14 companies recording share price gains of more than 25 per cent, driving the month’s performance.

These were partially offset by losses from other companies with 12 companies having losses of more than five per cent. The greatest percentage gains were recorded by SmartHeat Inc (HEAT), China Clean Energy Inc. (CCGY) and LDK Solar (LDK).