Global industrials see largest net buying in 6 weeks – Goldman Sachs’ Prime

[World Economic Recession of Oil and Gas Industrial Sector, Global Stock Investment Downturn of Fuel Energy Oil/Gas Industry. Corona Virus Epidemic Crisis, Financial Economy]
Douglas Rissing

Global industrials (NYSEARCA:EXI [https://seekingalpha.com/symbol/EXI]), (VIS [https://seekingalpha.com/symbol/VIS]), (FIDU [https://seekingalpha.com/symbol/FIDU]) experienced the largest net buying in six weeks, driven almost entirely by long buys, according to Goldman Sachs’ Prime Brokerage, which services hedge funds.

Global industrials (NYSEARCA:EXI [https://seekingalpha.com/symbol/EXI]) were also net bought for a second straight week, after being net sold in seven of the prior eight weeks, driven almost entirely by long buys, Prime analysts said.

European markets dominated this trend, accounting for approximately 70% of the global net buying, followed by developed markets in Asia, while U.S. Industrials (XLI [https://seekingalpha.com/symbol/XLI]) saw minimal activity.

At the subsector level, electrical equipment (DJUSEC [https://seekingalpha.com/symbol/DJUSEC]), (SP500-201040 [https://seekingalpha.com/symbol/SP500-201040]), machinery (MOO [https://seekingalpha.com/symbol/MOO]), (IFRA [https://seekingalpha.com/symbol/IFRA]), (AIRR [https://seekingalpha.com/symbol/AIRR]), commercial services and supplies, aerospace and defense (ITA [https://seekingalpha.com/symbol/ITA]), (XAR [https://seekingalpha.com/symbol/XAR]), (PPA [https://seekingalpha.com/symbol/PPA]), and passenger airlines (JETS [https://seekingalpha.com/symbol/JETS]) were the most net bought on the week, Prime analysts said.

The Prime book now maintains an overweight position in industrials compared to the MSCI World Index (XWD:CA [https://seekingalpha.com/symbol/XWD:CA]), (URTH [https://seekingalpha.com/symbol/URTH]) by +5%, ranking in the 43rd percentile vs. the past year and the 88th percentile vs. the past five years.

Current industrials gross/net exposures stand at 15.2%/15.6% as a percentage of the global Prime Book, ranking in the 93rd/46th percentiles vs. the past year and in the 99th/89th percentiles vs. the past five years.

[Prime Book: Over/Under-Weight vs. MSCI World Index (%)]
Prime Book: Over/Under-Weight vs. MSCI World Index (%) (Goldman Sachs Global Banking & Markets)

MORE ON ISHARES GLOBAL INDUSTRIALS ETF:

* EXI: Industrials Dashboard For August [https://seekingalpha.com/article/4814290-exi-industrials-dashboard-for-august]
* BofA adjusts ratings for U.S. chemical makers amid weak outlook [https://seekingalpha.com/news/4485581-bofa-adjusts-ratings-for-u-s-chemical-makers-amid-weak-outlook]
* Hedge funds pile into industrial stocks [https://seekingalpha.com/news/4469069-hedge-funds-pile-into-industrial-stocks]
* Seeking Alpha’s Quant Rating on iShares Global Industrials ETF [https://seekingalpha.com/symbol/EXI/ratings/quant-ratings]
* Dividend scorecard for iShares Global Industrials ETF [https://seekingalpha.com/symbol/EXI/dividends/scorecard]