HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |...

HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG | [email protected] | www.sincosinco.com

United States of America S&P 500

Top 10 by Market Cap: Apple, ExxonMobil, IBM, Microsoft, GE, Chevron, AT&T, P&G, J&J, Wells Fargo

1

S&P 500® index was first published in 1957

Represents 75% of US equities

Over $4.8T is benchmarked to the S&P 500

Most recent change Added: LyondellBasell Deleted: Sears Holdings

S&P 500 (1 July 2008 – 30 June 2012)

Source: Ryan Yanaro, HEC Paris MBA, Sep 2012; http://www.google.com/finance?q=INDEXSP%3A.INX&ei=YB9PUOihIeSFwAOI3QE; http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500-usduf--p-us-l--

Index Characteristics 10-Sept-2012

Sector Breakdown 10-Sept-2012Criteria for index admission •US Company•Market Cap > $4B•Public float of at least 50%•Financial Viability•Adequate liquidity and reasonable price•Sector representation•Company type

http://www.google.com/finance?q=INDEXSP:.INX&ei=YB9PUOihIeSFwAOI3QE

http://www.standardandpoors.com/indices/sp-500/en/us/?indexId=spusa-500-usduf--p-us-l--

EC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | Suchit Saraf | [email protected]

INDIA: Bombay Stock Exchange

• 2008: (-52%) One of the worst years for markets globally, due to recession in US, credit crunch and collapse of Lehman

• 2009: (+81%) 2nd best year for Indian equities ever. Government slashed taxes and opened the floodgates of liquidity, boosting morale that brought back global investors

• 2010: (+17%) Robust economic growth, record overseas investment (up 61% for the year)• 2011: (-25%) Slowdown in the Indian economy, high inflation, depreciating currency, corruption

cases against the government, and rising concerns over Europe’s debt crisis made India one of the worst performing markets globally

2

• “Bombay Stock Exchange” or “BSE”, established in 1875 is the oldest stock exchange in Asia.

• Sixth largest stock exchange in Asia (Aggregated market cap: US$ 1 Trillion, as of December 2011)

• 5,133 listed Indian companies (as of March 2012)• Key index is BSE SENSEX, also called BSE30 or SENSEX:

• Free-float market capitalization-weighted stock market index of 30 well-established and financially sound companies listed on BSE

SENSEX (1 Jul 2008 – 30 Jun 2012)

Source: Google Finance, Wikipedia, Factiva


• “Bolsa de Madrid” is the major stock exchange of Spain.

• Established in 1831.• 1.477 listed companies at December 31, 2001.• Total market capitalization at May, 2007 was

€1,276.26 billion.

SPAIN STOCK EXCHANGEBolsa de Madrid

1 July 2008 – 30 June 2012

• Market capitalization weighted index comprising the 35 most liquid Spanish stocks traded in the Madrid Stock Exchange General Index, which are reviewed twice annually.

• Established on January 14, 1992• Currently composed of 36 companies.

http://en.wikipedia.org/wiki/Bolsa_de_Madridhttp://www.bolsamadrid.es/ing/portada.htm

http://en.wikipedia.org/wiki/IBEX_35

• All time maximum of 15.945 reached on November 8, 2007 (construction and real state)

• Lehman Brothers effect: largest 1d fall of 9.14% on October 10th, 2008; losses of 21% in 5 consecutive days in October and decline of 39.4% in 2008.

• Maximum rise of 14.43% on May 10th, 2010: European bail-out approval.

http://es.wikipedia.org/wiki/IBEX_35

IBEX35

Source: Marc Ferrer Capdevila, HEC Paris MBA, Sep 2012

http://en.wikipedia.org/wiki/Bolsa_de_Madrid

http://en.wikipedia.org/wiki/Bolsa_de_Madrid

http://www.bolsamadrid.es/ing/portada.htm

http://www.bolsamadrid.es/ing/portada.htm



http://es.wikipedia.org/wiki/IBEX_35


S&P CNX Nifty

S&P CNX Nifty historical movements from July 01, 2008 to June 30, 2012

http://www.google.com/finance/historical?cid=207437&startdate=Jul+01%2C+2008&enddate=Jun+30%2C+2012&num=30&ei=7MRPUNDhOMqYwQO-Aw

The S&P CNX Nifty is the headline index on the National Stock Exchange of India Ltd. (NSE).

It includes 50 of the approximately 935 companies listed on the NSE, captures approximately 60% of its equity market capitalization and is a true reflection of the Indian stock market.

The S&P CNX Nifty covers 22 sectors of the Indian economy

Description

Source: Rahat QAZI, HEC Paris MBA, Sep 2012

2000

2500

3000

3500

4000

4500

5000

CAC 40: -26% between 01/07/2008 and 30/06/2012 (max 4539; min 2519)

13/10/2008: EU ready to mobilize €1700B to save its financial system.

11/12/2008: Madoff's $50B Ponzi scheme revealed.

09/03/2009: CAC40 reaches its lowest level since March 2003. On March 10 US Secretary of Treasury announces a massive plan to buy toxic assets from banks: worldwide bounceback of stockmarkets.

29/10/2009: the US GDP returns to growth.

07/12/2009: the rating agencies downgrade Greece's credit rating; this is the kickoff of the European debt crisis.

09/02/2010: EU's first preservation plan for Greece. 27/08/2010: FED

discloses its QE2 plan.

12&13/11/2010: At Seoul's G20 Ireland's declarations regarding its good health meet scepticism. A preservation plan will be announced in response to growing speculation.

10/05/2010: Joint action of the central banks.

08/04/2011: Libyan crisis; the barrel of Brent reaches 126$.

15/09/2008: Lehman Bothers bankruptcy puts the world of finance under shock.

16/03/2011: Fukushima.

16/06/2011: 6 weeks downwards due to worries on Greece's crisis contagion.

10/08/2011: FED contains the 2011 summer crisis. During this crisis EU's plan for Greece did not convince the markets, the debt crisis spread to Italy and Spain and US lost AAA rating.

21/12/2011: BCE 1rst LTRO.

13/01/2012: France loses AAA rating.

20/04/2012: 5 weeks downwards due to Spain's situation and US jobs creation.

29/06/2012: UE's measures for growth and banking union.

2008 2009 2010 2011 2012

Matthieu GASNOS

HEC Paris MBA Sustainable Investment Masterclass 19 – 22 September 2011 | [email protected] | © SinCo 2011 www.sincosinco.com

S&P 500 Performance 2008-2012

Source: Ryan Rastegar, HEC Paris MBA, Sep 2012


SLID 1: [Hong Kong Stock Exchange]

• After passing the 30,000 point milestone on Oct. 18, 2007, the index was 31,958.41 points during trading and 31,638.22 points at closing on Oct. 30, 2007 .

• After Oct. 30, 2007, the index kept falling. On Oct. 27, 2008, it further fell to 10,676.29 points, having fallen nearly two-thirds from its all-time peak.

• The index passed the 20,000 point milestone again to 20,063.93 on 24 July 2009. As of the 13th of July, 2012 the index is hovering around 19,000 to 20,000 points.

7

• Hong Kong Stock Exchange (SEHK) was formally established in 1891.

• Third largest stock exchange in the Asia, sixth largest in the world (with a combined market cap of HK$16.985 trillion)

• As of Nov. 30, 2011, 1,477 listed companies, divided into 1st & 2nd Section, and ”Mothers”h

• Hang Seng Index (HSI) is the major index, which was started on Nov. 24, 1969. The components of the index are divided into four sub-indexes: Commerce and Industry, Finance, Utilities, and Properties. The index was developed with a base level of 100 as of July 31, 1964

HSI (1 July 2008 – 30 June Dec 2012)

http://www.google.com/finance?q=INDEXHANGSENG%3AHSI&ei=spJPULDPCuaIwAPVNQ

Source: Peina Wang, HEC Paris MBA, Sep 2012

http://www.google.com/finance?q=INDEXHANGSENG:HSI&ei=spJPULDPCuaIwAPVNQ

http://www.google.com/finance?q=INDEXHANGSENG:HSI&ei=spJPULDPCuaIwAPVNQ


IPC^MXX - Mexico

8

08/0

7/20

08

22/0

9/20

08

07/1

2/20

08

21/0

2/20

09

08/0

5/20

09

23/0

7/20

09

07/1

0/20

09

22/1

2/20

09

08/0

3/20

10

23/0

5/20

10

07/0

8/20

10

22/1

0/20

10

06/0

1/20

11

23/0

3/20

11

07/0

6/20

11

22/0

8/20

11

06/1

1/20

11

21/0

1/20

12

06/0

4/20

12

21/0

6/20

12 -

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

-

10,000

20,000

30,000

40,000

Volume Adj Close

Founded in 1886The Mexican Stock Exchange (BMV) is a public institution that operates under a concession granted by the Ministry of Finance (SHCP), observing the Mexican Securities Law.1

Main Index: IPC Índice de Precios y CotizacionesNumber of listed companies: 135

1 About BMV (2007). Retrieved September 11, 2012, from http://www.bmv.com.mx/wb3/wb/BMV/BMV_acerca_de_la_bmvCarlos Tejada

http://www.bmv.com.mx/wb3/wb/BMV/BMV_acerca_de_la_bmv


Task 6 – CAC 40 / Paris Stock Exchange

Paris Stock Exhange :- created in the 1500’s as Lyon

Bourse, Paris Bourse was officially recognised in 1801

- 2nd largest in Europe after London Stock Exchange with $1.2 trillion market cap and 586 listings

CAC 40 Index:- Selected from top 100 market cap and most active listed equities

Source: Rym Sullivan, HEC Paris MBA, Sep 2012

Key dates:- 15/09/2008 : Fall of Lehman Brothers ) start of decline of stock values- 13/10/2008: Announce from EU of €1700B rescue package- 03/03/2009: CAC 40 Index at its lowest since 2003- 07/12/2009: Downgrading of Greece rating- 09/02/2010: First rescue plan for Greece- 16/03/2011: Fukushima- 10/08/2011: US looses AAA rating- 13/01/2012: France looses AAA rating


NIKKEI 225

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1341295200000&chddm=359532&chls=IntervalBasedLine&q=INDEXNIKKEI:NI225&ntsp=0&ei=qc1PUIDnMcP3wAPSwgEhttp://en.wikipedia.org/wiki/Nikkei_225

10

Shohei MAEKAWA

• The Nikkei, more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average, is a stock market index for the Tokyo Stock Exchange (TSE).

• It has been calculated daily by the Nihon Keizai Shimbun (Nikkei) newspaper since 1950. It is a price-weighted index (the unit is yen), and the components are reviewed once a year.

• Currently, the Nikkei is the most widely quoted average of Japanese equities, similar to the Dow Jones Industrial Average.

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1341295200000&chddm=359532&chls=IntervalBasedLine&q=INDEXNIKKEI:NI225&ntsp=0&ei=qc1PUIDnMcP3wAPSwgE



http://en.wikipedia.org/wiki/Nikkei_225




S&P 500 Performance (July 1, 2008 – June 30, 2012)

7/1/

08

8/30

/08

10/2

9/08

12/2

8/08

2/26

/09

4/27

/09

6/26

/09

8/25

/09

10/2

4/09

12/2

3/09

2/21

/10

4/22

/10

6/21

/10

8/20

/10

10/1

9/10

12/1

8/10

2/16

/11

4/17

/11

6/16

/11

8/15

/11

10/1

4/11

12/1

3/11

2/11

/12

4/11

/12

6/10

/12

0

200

400

600

800

1000

1200

1400

1600

S&P 500 Index Performance

Index L

evel

S&P 500 (Standard and Poor’s Index) is a market cap weighted index of the largest 500 companies domiciled in

the United States. It is widely considered the best representation of US equity

markets.

Annualize

dYear Return Vol2008 -29.43% 53.74%2009 23.45% 27.28%2010 12.78% 18.05%2011 0.00% 23.27%2012 6.66% 13.36%

Cummulative Period

Return 1.57% Ann. Vol 28.10%

Source: Standard and Poor’s website

Daniel Georges


Mapping of the performance of the stock market index

• 2008 Worst decline (-42.1%) due to Lehman Shock • 2011 Big decline (-13.9%) in March due to the earthquake/tsunami/nuclear• 2012 Basically below 10.000 JPY due to the strong yen

12

Nikkei 225 (1 July 2008 – 30 June 2012)

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1340949600000&chddm=356307&chls=IntervalBasedLine&q=INDEXNIKKEI:NI225&ntsp=0&ei=9mdQUICUI8SswAPoFg

Source: Yukihiro Yoshida, HEC Paris MBA, Jan 2012





Major stock index in JAPAN: Nikkei225

• Provider: Nikkei inc (Newspaper publisher)• Components:

225 companies listed on the Tokyo Stock Exchange 1st section

• Unit: Yen (Averaged price weighted)cf. Dow Jones Industrial Average

Lehman shock

Tohoku earthquake

SAKAMOTO Atsuki (HEC Paris MBA, Class of 2013)


S&P 500: United States

Performance (July, 2008 – June, 2012 ): http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1341000000000&chddm=396083&chls=IntervalBasedLine&q=INDEXSP:.INX&ntsp=0&ei=j1FPUOCwD6L3wAPH2gE

14

Sources: Google Finance

Ian Sessions

• Founded in 1957• Stock market index based upon the prices of the common stock

of 500 of the top publically traded American companies• Index maintained by Standard and Poor’s• Components of S&P 500 are selected by a committee:

• Should be representative of industries in the United States economy

• Must have publically traded common stock• Companies must have sufficient liquidity

• Return of 6.55% from July, 2008 – June, 2012

http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1341000000000&chddm=396083&chls=IntervalBasedLine&q=INDEXSP:.INX&ntsp=0&ei=j1FPUOCwD6L3wAPH2gE







PPT2: [ CHINA –Shanghai Stock Exchange - ]

• 2008 - Speculative traders made China's stock exchange temporarily the world's second largest in terms of turnover , reaching an all time high of 6,124,044 points on October 16,2007, the benchmark SCI ended 2008 down a record of 65% due to 2008 global financial crisis.

• 2009 Showed signs of recovery (15% increase) but weak compared to previous year. • 2010 Agricultural Bank of China completed the world’s largest IPO to date worth US$22.1

billion

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• “Shanghai stock exchange” or “SSE” for short was established in June 1866.• 1990 - The present Shanghai Stock Exchange re-opened on November 26

and began operation• 2001-2005 - A four-year market slump which saw Shanghai's market value

halved, after reaching a peak in 2001. A ban on new IPOS was put in April 2005 to curb the slump

Shanghai composite index (1 Jul 2008 – 1 Jun 2012)

http://www.google.com/finance/historical?cid=7521596&startdate=July+1%2C+2008&enddate=june+1%2C+2012&num=30&ei=HzJQUNDtNOaIwAPVNQ

Source CAI ZIilan, HEC Paris MBA, Sep 2012


US: S&P500 Performance: Jul 2008 – Jun 2012

Source: Google FinanceSteven Southwick.


China – Shanghai Stock Exchange

17

6/30

/04

8/13

/04

9/26

/04

11/9

/04

12/2

3/04

2/5/

05

3/21

/05

5/4/

05

6/17

/05

7/31

/05

9/13

/05

10/2

7/05

12/1

0/05

1/23

/06

3/8/

06

4/21

/06

6/4/

06

7/18

/06

8/31

/06

10/1

4/06

11/2

7/06

1/10

/07

2/23

/07

4/8/

07

5/22

/07

7/5/

07

8/18

/07

10/1

/07

11/1

4/07

12/2

8/07

2/10

/08

3/25

/08

5/8/

080

500

1000

1500

2000

2500

3000

3500

4000

Adj Close of SSE Index*

Adj Close

• The Shanghai Stock Exchange (SSE) was founded on Nov. 26th,1990 and in operation on Dec.19th the same year.

• As at the end of 2010, SSE boasted 1,500 listed securities and 894 listed companies, with a combined market capitalization of RMB 17,900.724 (EUR 2,196.19) billion and a total of 98.51 million trading accounts.

• The SSE index was also impacted by the 2008 crisis but only decreased 24%.

• Although the market has recovered faster than any other market, the Chinese stock market is famous for it’s unpredictability due to large amount of “day traders”.

Rick Shi


PPT2: India- Bombay Stock Exchange

• 2008 Loss of -52% seen this year due to the recession seen in the US • 2009 Significantly better(80% increase) : Improved sentiments, new government formation • 2010 Up slightly(17%) because of signs of economic growth

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• “BSE” was founded in 1975; Oldest stock exchange in Asia• Market Cap: US$1 trillion (as of Dec 2011) • 5,133 listed companies• Key main index: BSE SENSEX, “BSE 30”

BSE 30 (1 July 2008 – 30 June 2012)

Source: Prerna Sabarwal, HEC Paris MBA, Jan 2011


UK – London Stock Exchange

• 2008-09: 31.3% decrease between 1/1/08 and 31/12/08; signs of recovery in 2009 (18.5% increase)

• 2010: continued recovery – 7.5% increase• 2011-12: increased volatility due to ongoing Eurozone crisis; roughly flat over the period

(3.3% total decrease)19

• Established in 1801• 4th largest exchange in the world, with aggregated market cap of

$5.9 trillion• 2,520 listed companies• Major indices: FTSE 100, FTSE 250, FTSE 350, FTSE Small Cap,

FTSE All ShareFTSE 100 (1 Jan 2008 – 31 Dec 2010)

Source: Yahoo! Finance, LSE Website, WikipediaRobert Moore

HEC Paris MBA Sustainable Investment Masterclass 10-15 September 2012 | © SinCo 2012 | @SinCOESG |...

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