Cleantech stocks caught in a rut

Clean energy stocks fell further than the market benchmark for the quarter, although Actinogen, Papyrus Australia and AnaeCo enjoyed strong gains in March.

ACT Australian CleanTech Index underperformed the S&P ASX200 but outperformed the S&P ASX Small Ordinaries for the month of March. For the third quarter of this financial year, it underperformed both of its benchmarks.

The ACT Australian CleanTech Index fell from 38.4 to 37.9 over the month of March recording a 1.3 per cent loss. This compared to the S&P ASX200 loss of 0.2 per cent and the S&P ASX Small Ordinaries Index loss of 1.9 per cent. The Australian CleanTech 20 recorded the same performance as the full index for the month.

Over the second quarter of the 2014 fiscal year, the ACT Australian CleanTech Index has underperformed its benchmarks recording a loss of 5.1 per cent, behind the S&P ASX200's gain of 0.8 per cent and the S&P ASX Small Ordinaries' 0.2 per cent loss.

The six and 12-month figures remain ahead of the wider market with the returns for the ACT Australian CleanTech Index recording gains of 7 per cent and 10.7 per cent respectively.

Graph for Cleantech stocks caught in a rut

The market capitalisation of the 64 stocks in the ACT Australian CleanTech Index is $14.6 billion, after its rebalance, falling from its peak of $16.3 billion in July 2007 but a long way up from its trough of $6.2 billion in July 2012.

Best and worst stocks

The best and worst performers in terms of share price performance over the month and the third quarter of the 2014 fiscal year are shown in the table below.

The month’s performance was driven by eight companies with gains of more than 10 per cent. The greatest gains were recorded by Actinogen, Papyrus Australia and AnaeCo. These gains were more than offset by 15 companies recording losses of more than 10 per cent led by Mission NewEnergy, Water Resources Group and Pacific Environment.

The quarter’s performance was driven by 14 companies with gains of more than 20 per cent. The greatest gains were recorded by Actinogen, Enerji and Greenearth Energy. These gains were again more than offset by eight companies recording losses of more than 20 per cent led by EnviroMission, Algae.Tec and Water Resources Group.

Graph for Cleantech stocks caught in a rut

Index rebalance

The ACT Australian CleanTech Index underwent its quarterly rebalancing at the end of March which took account of recent share issues and other corporate activity.

The changes that were made to the index constituents at this rebalancing were:

Additions to the index

Mighty River Power Ltd (ASX:MYT) - Mighty River Power is one of New Zealand’s largest electricity companies with a core business based on low fuel-cost electricity generation complemented by sales to homes and businesses. Mighty River Power participates in the wholesale spot market and has a diversified portfolio of generation assets, including hydro, geothermal and gas-fired generation. Mighty River Power completed an IPO on both the ASX and the NZSX in 2013. www.mightyriver.co.nz

Graph for Cleantech stocks caught in a rut

Removal from the index

CBD Energy Ltd (ASX:CBD) following its delisting.

KUTH Ltd (ASX:KEN) following its acquisition by Geodynamics.

Torrens Energy Ltd (ASX:TEY) following its change of focus to be an oil and gas exploration company

A watching brief is being maintained on the following companies in the index:

Petratherm Ltd (ASX:PTR) following its award of Petroleum Exploration Licence (EL3/2013) covering approximately 3900 sq km, north of Hobart in central Tasmania to explore for shale oil and gas.

Novarise Renewable Resources International (ASX:NOE) which is negotiating a privatisation proposal from its majority shareholder.

Wasabi Energy (ASX:WAS) which is currently in administration and undergoing a major financial restructure.

Graph for Cleantech stocks caught in a rut

John O’Brien is managing director of Australian CleanTech.

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.