BUSINESS NEWS
13
INTERNATIONAL AND SPECIALIZED TRANSPORT
■
JULY 2013
STOCK
CURRENCY
PRICE
PRICE CHANGE
%
PRICE 12
12 MTH
AT START AT END
CHANGE MTHS AGO % CHANGE
IC
Share Index*
67.43 54.24 -13.19 -19.56
69.56 -22.03
Legacy IC Share Index**
366.89
309.15
-57.74
-15.74
253.21
22.09
Dow Jones Industrial Average
15295
15024 -270.01
-1.77
12880.09
16.65
FTSE 100
6697
6243 -453.64
-6.77
5571.15
12.07
Nikkei 225
14612
13677
-935.13
-6.40
9003.48
51.91
Hitachi Construction Machinery YEN
2592
2038
-554
-21.37
1462
39.40
KCI Konecranes
€
27.02
22.67
-4.35
-16.10
20.93
8.31
Kobe Steel
YEN
156
122
-34
-21.79
97
25.77
Liugong
CNY
8.42
6.50
-1.92
-22.80
12.31
-47.20
Manitowoc
US$
20.00
17.99
-2.01
-10.05
11.70
53.76
Palfinger
€
24.30
21.75
-2.55
-10.49
17.66
23.19
Sany Heavy Industry
CNY
9.49
7.49
-2.00
-21.07
13.86
-45.96
Tadano
YEN
1295
1277
-18
-1.39
582
119.42
Terex
US$
34.01
26.93
-7.08
-20.82
17.83
51.04
XCMG
CNY
10.53
7.79
-2.74
-26.02
14.30
-45.52
Yongmao Holding
SGD
0.16
0.11
-0.05
-29.94
0.10
6.80
Zoomlion
CNY
7.29
5.39
-1.90
-26.06
10.18
-47.05
*IC Share Index, 1 Jan 2011 = 100
**Legacy IC Share Index, end April 2002 (week 17) = 100
JULY IC SHARE INDEX
CURRENCY
VALUE
VALUE
CHANGE
% CHANGE
VALUE 12
12 MTH
AT START
AT END
MTHS AGO
% CHANGE
CNY
6.131405
6.169935
0.0385
0.63
6.35512
-2.91
€
0.6624
0.6550
-0.0075
-1.12
0.6408
2.21
Yen
101.67
98.76
-2.92
-2.87
79.53
24.17
UK£
0.7720
0.7654
-0.0067
-0.87
0.7943
-3.64
Period: Week 21 - 26
EXCHANGE RATES – US$
Chinese impact
enough to drive Chinese stock
markets to their lowest levels
for more than four years.
Unsurprisingly, this pulled
down share prices among
many all of the Chinese crane
manufacturers. Most heavily
hit was Yongmao, which fell
nearly 30 %, but no Chinese
manufacturers escaped with
less than a 29 % decline.
Sudden impact
What’s more the impact of this
news was felt throughout the
global crane industry. Every
manufacturer that makes up
the
IC
Share Index saw its share
price fall between weeks 21 and
26, and all except Tadano were
hit with a double-digit drop.
June saw the
global stock
markets come
off the boil, but
the prospect of a
credit crunch in
China sent
IC
’s
Share Index into a
nose-dive. CHRIS
SLEIGHT reports
This took the
IC
Share Index
to 54.24 points, the lowest in its
history, since being launched at
the start of 2011.
Clearly the news from China
rattled the nerves of investors
around the world, and as one
might expect, any government
or bank measure that makes
credit harder to come by is
going to hit a capital goods
sector like cranes.
It remains to be seen how
the situation in China plays
out. Optimists would point
to the government’s strong
track record in managing its
economy over the last
decade or more but,
realistically, the markets are in
uncharted territories.
■
A
fter a strong rally in the
first part of the year
and some unexpected
highs being hit, the world’s
stock markets fell back in June.
A downturn like this after a
strong surge is an inevitable
part of the cycle, as investors
elect to take their profits from
the market.
The mildest downturn was
seen for the Dow, which lost
only 1.77 % of its value between
weeks 21 and 26. This saw it
close out the month of June
above the 15,000-point mark,
although there were points in
the previous weeks when it had
fallen below this benchmark.
More striking have been the
6.77 % fall in the FTSE 100 over
the same period and 6.40 %
drop in the Nikkei 225. Having
said that, the FTSE finished
June some 12.07 % higher than
it was 12 months before and the
Nikkei has risen a remarkable
51.91 % on the back of a weak
currency to boost exports
and the boost to the domestic
economy from ‘Abenomics’.
Crane crash
The downturn in crane
manufacturers’ shares,
however, has been much more
pronounced.
IC
’s share Index
fell 19.56 % over the same five
week period and is more than
22 % lower than a year ago.
The key driver for this
nose-dive were concerns over
the Chinese Government’s
plans to tighten credit. The
announcement from China’s
central bank that the era of
cheap credit was over was
