Equities Head South in September Around the Globe

October 1, 2002 (PLANSPONSOR.com) - Global equity markets resumed their downward spiral in September after a generally neutral August, while domestic equities were also in the minus column during the month, a global index provider reported.

Among the four FTSE4Good indexes, the Global index lost 11.7% in September and 20.2% over three months. The Global 100 finished September down 12% and the quarter down 19.8%.

On the domestic scene, FTSE said its  FTSE4Good US outperformed its’ benchmark by 0.6% although ending the month down 10.6%, while the narrower FTSE4Good US 100 Index managed marginally better performance, being down 10.5%.

Poorer performance from European stocks meant the FTSE4Good US had a better month than its European counterpart

Defensive stocks generally lost less during September as investors looked to them to hold product demand. Healthcare & Beverage companies featured among the FTSE4Good US stocks’ best performers.

However, while the best performing stock managed a gain of only 8.3%, the biggest loser lost over 65%, as the usual suspects provided the list of decliners – Delta Airlines was the only non-Software or IT Hardware company on that list

According to FTSE, the best domestic performers (with September’s return) included:

  • Boston Scientific Corp., 8.3%
  • Best Buy Co., 5.2%
  • Coca-Cola Enterprises, 5.1%
  • Tenet Healthcare, 4.9%
  • Caremark Rx, 4.9%

The worst list included (with September losses) included:

  • Electronic Data Systems, -65.3%
  • Lucent Technologies, -56.1%
  • Sprint PCS Group, -50.5%
  • Delta Air Lines, -47.1%
  • PMC-Sierra,   -44.6%

FTSE’s Environmental Expectations

On another issue, FTSE has finished its market consultation regarding the environmental criteria for the FTSE4Good benchmarks that are aimed at measuring socially responsible investing.

As a result, all FTSE4Good companies have been given an environmental rating of high, medium, or low.

Starting in March 2003, existing medium and low constituents must have a publicly available environmental policy, and from September 2003, all medium companies must provide evidence of an environmental management system.

All prospective new entrants must meet the requirements of their rating from September 2002.