financeasia-100-index-retreats-from-high

FinanceAsia 100 index retreats from high

Our Asian blue chip index gives up gains.

After hitting an all time high the FinanceAsia 100 gave up most of its gains for 2006, ending last week at 1,441 down from 1,466.

If you would like the chance to win a case of champagne, send an email to [email protected] predicting where the FinanceAsia 100 will finish 2006.

The FinanceAsia 100 index is reconstituted each October to reflect its mission to be the definitive Asian blue chip index - capturing the performance of the region's most profitable companies. Since its debut in September 2002, the FA100 index has served as a benchmark for some of non-Japan Asia's brightest corporate names. Benchmarked at 1,000 points at launch, FinanceAsia's blue chip index has experienced both lows and highs, dropping throughout the SARs era and soaring to new heights in the aftermath.

The reconstituted index

As in years past, non-Japan Asia's best performing companies like HSBC, Samsung Electronics and Singapore Telecom remain unassailable members of the index, while some of the region's lesser-known corporations are dropped at the expense of peer companies.

In September 2005 the FA100 was again recalibrated to include 20 new constituents to the blue chip index. This represents the index's largest reorganization since 2002 and further expanded on its geographical and sectoral diversity.

Compared to the 2004 constituents, the geographical make-up has taken on a more balanced appearance with the emerging economic powers of China and India playing a greater role. Out of the index's 100 stocks, Chinese-based corporations now account for 13%, with finance sector corporations China Merchants Bank and China Life Insurance and recently-listed telecommunication firm, Chine Netcom the new additions.

The five additions from the Indian corporate sphere pushed the total number of constituents from the nation up to 12. Joining the FA100 in 2005 are technology firm Tata Consulting Services, the State Bank of India (SBI), National Thermal Power Corporation and natural resource stocks Indian Oil and GAIL (India).

The 2005 reconstitution will also mark the first year that Hong Kong companies are not the geographic majority, with South Korean corporations topping the territory by a margin of 22 to 16. Also seeing its constituent numbers drop were the Malaysia, Singapore and Thailand representation. Numbers from both Taiwan and Indonesia remained steady.

From a sectoral point of view, the index added four natural resources companies. The weighting of transportation stocks was bolstered by two additions, while the technology component includes four new names.

The industrials segment of the FA100 evened out with two additions and two removals, while a similar scenario played out with the index's power sector components. In 2005 there was no consumer, conglomerate or real estate stocks added to the list, while the telecom sector included a lone new constituent.

Of the dropped stocks from the FA100, five finance corporations were removed, while the conglomerate and technology sectors also featured heavily with four and three dismissals respectively. The consumer, industrials and telecommunication sectors all lost two constituents, while one company from both of the real estate and power sectors were ousted.

In December FinanceAsia will publish "A Guide to Asia's Blue Chip Companies", which analyses the component stocks of the FinanceAsia 100. A copy of this will be available from Naveet Singh on [email protected] or call (852) 21225224.

What is the FinanceAsia 100?
FinanceAsia's blue chip index is reconstituted every year, based on our methodology of looking at the region's most profitable companies. The index was reconstituted at the beginning of October. The FinanceAsia 100 was launched in September 2002 and when launched we said that each year we would reconstitute the list. The list is designed to be a blue chip index of Asia's 100 most profitable companies based on an agggregate of three years profits. We arrived at the list last year by asking UBS to sort the region's companies based on three years of aggregate profit and this time we asked UBS to do the same exercise again.



Closing
Price
Date
1084.0 5/07/04
1076.0 12/07/04
1059.0 19/07/04
1065.0 26/07/04
1061.0 2/08/04
1072.0 9/08/04
1067.0 16/08/04
1078.0 23/08/04
1105.0 30/08/04
1118.0 6/09/04
1130.0 13/09/04
1153.0 20/09/04
1142.0 27/09/04
1188.0 4/10/04
1207.0 11/10/04
1175.0 18/10/04
1173.0 25/10/04
1183.0 1/11/04
1227.0 8/11/04
1246.0 15/11/04
1259.0 22/11/04
1262.0 29/11/04
1293.0 06/12/04
1255.0 13/12/04
1265.0 10/01/05
1272.0 17/01/05
1276.0 24/01/05
1291.0 31/01/05
1302.0 07/02/05
1313.0 14/02/05
1332.0 21/02/05
1357.0 28/02/05
1332.0 07/03/05
1344.0 14/03/05
1325.0 21/03/05
1299.0 28/03/05
1300.0 04/04/05
1305.0 11/04/05
1283.0 18/04/05
1284.0 25/04/05
1288.0 02/05/05
1315.0 09/05/05
1299.0 16/05/05
1302.0 23/05/05
1304.0 30/05/05
1317.0 06/06/05
1337.0 13/06/05
1337.0 20/06/05
1351.0 27/06/05
1343.0 04/07/05
1318.0 11/07/05
1364.0 18/07/05
1398.0 25/07/05
1408.0 1/08/05
1402.0 8/08/05
1420.0 15/08/05
1377.0 22/08/05
1363.0 29/08/05
1374.0 5/09/05
1386.0 12/09/05
1384.0 19/09/05
1281.0 10/10/05
1282.0 17/10/05
1265.0 24/10/05
1243.0 31/10/05
1290.0 7/11/05
1318.0 14/11/05
1330.0 21/11/05
1338.0 28/11/05
1357.0 5/12/05
1357.0 12/12/05
1452.0 9/1/06
1466.0 16/1/06
1441.0 23/1/06
Rank Name Total pre-excep. net profit
CY2003-05(US$m)
1 PetroChina 38,537
2 HSBC Holdings 38,302
3 Samsung Electronics 21,873
4 China Mobile (HK) Ltd 15,907
5 China Construction Bank 14,396
6 China Petroleum and Chemical Corporation (Sinopec) 13,323
7 POSCO 8,923
8 Oil & Natural Gas Corporation 8,797
9 KEPCO 7,133
10 Taiwan Semiconductor Manufacturing 7,050
11 China Telecom 6,982
12 China National Offshore Oil Corporation 6,440
13 Hyundai Motor 5,274
14 SK Telecom 4,765
15 Reliance Industries 4,631
16 Singapore Telecom 4,596
17 Cheung Kong 4,507
18 PTT Public Company Ltd. 4,370
19 Indian Oil Corp. 4,250
20 China Steel 4,190
21 Wharf Holdings 4,034
22 Chunghwa Telecom 3,941
23 Bank of China (Hong Kong) 3,939
24 Sun Hung Kai P. 3,829
25 Hang Seng Bank 3,782
26 Baosteel (G) 3,524
27 DBS Bank 3,463
28 CLP Holdings 3,291
29 China Netcom Corporation 3,282
30 National Thermal Power Corporation Ltd. 3,196
31 HK Land 3,180
32 SK Corp 3,095
33 Nan Ya Plastics 2,866
34 Hon Hai Precision 2,859
35 United Overseas Bank 2,854
36 LG.Philips LCD 2,806
37 Woori Finance Holdings 2,800
38 KT Corp. 2,794
39 China Life 2,710
40 State Bank of India 2,706
41 Formosa C&Fibre 2,692
42 Formosa Plastics 2,654
43 Shinhan Financial Group 2,654
44 LG Electronics 2,594
45 Hana Financial Group 2,527
46 Telkom Indonesia 2,365
47 HK Electric 2,288
48 Swire Pacific 2,283
49 OCBC 2,206
50 Cathay Holdings 2,169
51 MISC 2,116
52 Aluminium Corporation of China Ltd 2,058
53 Siam Cement 2,022
54 Kookmin Bank 1,977
55 Neptune Orient Lines 1,953
56 Malayan Banking 1,908
57 Kia Motors Corporation 1,889
58 MTR Corporation Limited 1,887
59 Mega Financial Holdings 1,885
60 Hyundai Mobis 1,882
61 Bank of Communications 1,851
62 Huaneng Power 1,840
63 Hynix Semiconductor 1,823
64 Tata Steel Ltd. 1,803
65 China Unicom Ltd. 1,748
66 AU Optronics 1,747
67 S-Oil 1,677
68 Orient Overseas (International) Limited 1,653
69 Hyundai Steel 1,627
70 Singapore Airlines 1,616
71 Astra International 1,601
72 Advanced Info Service 1,502
73 MediaTek Inc. 1,497
74 Hang Lung Properties 1,491
75 Taiwan Mobile 1,435
76 Samsung SDI 1,428
77 Henderson Land 1,407
78 Tata Consultancy Services Ltd. 1,367
79 Asustek Computer Inc. 1,331
80 GAIL (India) Ltd. 1,320
81 China COSCO Holdings 1,314
82 KT&G 1,303
83 Industrial Bank of Korea 1,272
84 China Shipping Container Lines 1,272
85 Chinatrust Group 1,263
86 PTT Exploration & Production 1,247
87 Hanjin Shipping 1,245
88 ITC 1,217
89 China Merchants Bank (G) 1,210
90 Fubon Financial Holdings 1,191
91 Bank Mandiri 1,187
92 Bangkok Bank 1,186
93 Ping An Insurance (Group) Co. Ltd. 1,173
94 Sino Land 1,167
95 LG Chemical 1,164
96 Cathay Pacific 1,158
97 Infosys Technologies Ltd. 1,154
98 Maxis Communications 1,147
99 Telekom Malaysia 1,129
100 KTF 1,124

Note: HSBC has been incorporated because it is a Hong Kong listed company. We have also incorporated the new financial sector financial holding companies from Taiwan.