he fourth quarter was good for chemical companies stocks but less beneficial
he 4th quarter was great for chemical company stocks but less advantageous towards the share prices of major pharmaceutical companies and biotechnology firms.
Through the finish from the quarter, C&EN's chemical stock index was 10.% greater, at 235.8 (all C&EN indexes are 1992 = 100), than its third-quarter close. This is preferable to the development in C&EN's pharmaceutical index, which fell .1% to 393.4, and it is the biopharmaceutical index, which was up 3.1% to 567.6.
Caffeine index was the only person from the three C&EN measures to outshine the stock market's broader indexes. The Dow jones Johnson industrial average acquired 6.7% within the quarter, as the NASDAQ was up 6.9%.
Exactly the same pattern holds once the C&EN indexes are in contrast to the finish of 2005. The caffeine index was up 20.3% over where it absolutely was at the finish of the year before, and also the pharmaceutical index rose 13.2%. The biopharmaceutical index finished the entire year just two-tenths of the point greater compared to 567.4 published around the final buying and selling day's 2005.
Meanwhile, the Dow jones Johnson was up 16.3% over 2005's close, and also the NASDAQ rose 9.5%.
For those chemical companies that comprise C&EN's index, increases were prevalent. Evaluating the finish-of-the-year stock cost for individual firms with individuals from the third-quarter close, just two companies saw declines. PPG Industries was lower 3.5% to shut the entire year at $64.21 per share, and Georgia Gulf closed at $19.31 per share, lower 28.7%. Georgia Gulf's decline came after the organization reported an 8.6% earnings reduction in the 4th quarter Ceo Edward A. Schmitt stated the organization expects ongoing softening sought after.
The biggest gain one of the 25 chemical suppliers that comprise the index what food was in fertilizer producer Terra Industries, whose stock cost leaped 58.4% in the finish from the third quarter and most bending, growing 113.9%, in the finish of 2005 to $11.98 per share.
While not quite in Terra's league, fellow fertilizer maker Mosaic also did well, posting a 29.8% quarterly rise along with a 46.% annual increase to $21.36 per share. One good reason for that increases, based on securities analysts, maybe the expectation that maqui berry farmers will make use of the high cost of corn by growing the acres they plant and fertilize this season.
After Terra, the biggest year-to-year chemical company gain what food was in Albemarle. Its share cost elevated 87.2% over year-finish 2005 to $71.80. The business's quarter-to-quarter gain seemed to be very good, at 33.1%.
Nicole Daniel, Albemarle's mind of investor relations, attributes the healthy stock cost increase in part to greatly improved earnings-these were up 71.9% for that first nine several weeks of the season. Another positive was Albemarle's 2004 purchase of Akzo Nobel's refinery catalyst business. Investors required a wait-and-see attitude toward the offer during 2005, she signifies. However, with good 2006 results, they were given back aboard.
