Australian CleanTech Index performance – Nov

Clean energy firms have outperformed the broader market again, avoiding the benchmark's retreat as 11 companies posted gains of 20 per cent or more.

The ACT Australian CleanTech Index rose in November 2013 and again outperformed both the S&P ASX200 Index and the S&P Small Ordinaries.

The ACT Australian CleanTech Index rose from 37.1 to 38.5 over the month of November, recording a 3.7 per cent gain. This compared to the S&P ASX200 loss of 1.9 per cent and the S&P ASX Small Ordinaries Index loss of 5.3 per cent. The Australian CleanTech 20 recorded a slightly better result with a gain of 3.8 per cent.

The ACT Australian CleanTech Index has now outperformed both the benchmark indices over the last three, six and 12 months. Over the last six months it is running 9.7 per cent ahead of the ASX200.

The best performing sub-indices for the month were the ACT Water Index with a gain of 10.7 per cent, driven by strong gains from Reece Australia Holdings, and the ACT Environment Index with a 9.6 per cent gain.

The two weakest sub-indices through November were the ACT Biofuels Index which recorded a loss of 21.2 per cent (who would have thought it could get any lower!) and the ACT Geothermal Index recording a loss of 10.2 per cent.

The gains seem to be being driven by a gradual strengthening and stabilising of the larger stocks in the index with reduced volatility across the smaller stocks. The federal government's withdrawal of support programs for the sector does not appear to be having an impact on the listed companies, maybe because most of the beneficiaries were private companies.

Graph for Australian CleanTech Index performance – Nov

The market capitalisation of the 68 stocks in the ACT Australian CleanTech Index is $10.8 billion, falling from its peak of $16.3 billion in July 2007 but up from its low of $6.2 billion in July 2012.

The month’s performance was driven by 11 companies with gains of more than 20 per cent. The greatest gains were recorded by Cardia BioPlastics, EnviroMission and Phoslock Water Solutions.

These gains were partially offset by 11 companies recording losses of more than 20 per cent led by Galaxy Resources, Enerji and Wasabi Energy.

These best and worst performers are shown in the table below.

Graph for Australian CleanTech Index performance – Nov
Graph for Australian CleanTech Index performance – Nov

The ACT Australian Cleantech Index is published each month on the Australian CleanTech website at www.auscleantech.com.au, in the Ethical Investor magazine, WME’s Environmental Management News, the Clean Energy Council website, the SIM Venture Securities Exchange website and the London-based Cleantech Investor.

Monthly results can be emailed directly to interested parties by signing up to the distribution list at http://www.auscleantech.com.au/Pages/cleantech.html.

For a full listing of all companies included in the ACT Australian CleanTech Index, please email your request to index@auscleantech.com.au.

John O’Brien is managing director, Australian CleanTech.

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