NEMA, the National Electrical Manufacturers Association, has released the third quarter data for its Electroindustry Stock Index (ESI), a market capitalization-weighted index focusing primarily on the electrical manufacturing industry.
“The Dow Jones Industrial Average, NASDAQ composite, and the S&P 500 stock indexes all closed out the calendar third quarter down substantially,” said Steve Wilcox, economics director. “Likewise, the ESI suffered through a dismal quarter, losing 17.4% of its value since the close of the second quarter of this year. All eight component stocks fell by double-digit percentages for the period. More positively, in comparison to the broader market as measured by the S&P 500, the ESI did not lose quite as much ground when comparing third quarter 2002 to second quarter 2002. Additionally, when comparing the third quarter close in 2002 to the same period last year, the ESI actually gained nearly 6% while the S&P 500 lost almost 22%.”
The ESI is designed for tracking portfolio performances. It can be compared to the S&P 500 Index, which it often follows. Large, highly diversified companies that have a preponderance of trade substantially in markets outside this industry are not included.
Component companies of NEMA’s ESI are American Power Conversion, Cooper Industries, Eaton, Emerson Electric, Hubbell, Lincoln Electric, Rockwell, and Thomas & Betts. The companies were selected for the ESI based on four criteria: the company must be domestically traded; at least 40% of a company's revenue must come from the sale of electroindustry products; the company must have a minimum $500 million average market capitalization for the trailing four quarters; and the company's stock must have a minimum five-year trading history.
For more information, contact www.nema.org.