S&P 500 Energy earns $479.724 million through 2022

Thanks to the fact that oil has rebounded more than 20% in the year, the companies that make up the S&P 500 Energy accumulate a gain in market value of 479,724 million dollars during 2022.

The S&P 500 Energy is one of 11 sectors of the S&P 500 – the largest stock market index in the United States – and is made up of the 21 most widely traded energy companies in the US stock market.

While the energy sector is up 45.74% for the year, the overall S&P 500 is down 24.95% to 3,577.03 units. Energy is the only one of all the S&P 500 sectors that manages to post a positive annual return.

All the companies in the S&P 500 Energy show green numbers, with the exception of Baker Hughes, a company involved in the “Grey House” scandal of the son of President Andrés Manuel López Obrador, and Oneok Inc.

The contrast between the S&P 500 Energy and the S&P 500 is due to the fact that the rest of the sectors of the index present losses in the year.

Jacobo Rodríguez, Director of Analysis at the investment advisory firm Black Wallstreet Capital, said that the energy sector remains one of the most attractive on the Stock Exchange, due to the rebound in oil prices.

In the year, the US reference West Texas Intermediate (WTI) has risen 16.04%, the North Sea Brent rises 18.86%, while the Mexican export mix shoots up 20.45 percent.

This Wednesday, the price of oil suffered its third consecutive day of losses due to fears about demand, the strength of the dollar and the expectation of a more restrictive monetary policy to contain inflation.

WTI fell 2.33% in the session, to 87.27 dollars per barrel, while Brent lost 1.95%, to 92.45 dollars per barrel. The Mexican mix remained unchanged. Petróleos Mexicanos (Pemex) reported that the price of the Mexican mix on Wednesday will be published until Thursday morning.

“In the short term, oil prices will remain high, so the sector will continue to be attractive,” said Jacobo Rodríguez.

In the entire S&P 500 – made up of the 500 most widely traded companies in the United States – energy companies are the biggest earners.

The oil company Occidental Petroleum -dedicated to the extraction of oil and gas- leads the gains in the S&P 500 in the year, as its papers rise 126.01%, to 65.11 dollars each. Its market value went from 27,076 to 60,649 million dollars.

Occidental is followed by the company Hess Corp -dedicated to the manufacture of products derived from oil and coal-, whose shares rise 71.42% on the New York Stock Exchange.

The third that earns the most within the index is the insurance company Unum Group, which gains 70.72%, followed by the oil and gas extraction company Marathon Oil, whose papers advance 68.72 percent.

The fifth that earns the most is the manufacturer of petroleum and coal derivatives Conocophillips, whose shares have soared 67.43% so far in 2022.

Energy continues to lead

Although Energy continues to be the S&P 500 sector that gains the most in the second half of the year, other sectors are also already achieving a positive return.

Since June 30, the S&P 500 Energy is up 12.79%, trading at $616.12. In the first half of the year it grew almost 30 percent.

Jacobo Rodríguez commented that the energy sector has had lower growth in the Stock Market in the second half of the year due to a general drop in fuel prices, due to fears that demand will be reduced in a scenario of global recession.

Another sector that also points to green numbers is Consumer Discretionary, with an increase of 1.74%, trading at 1,096.54 dollars. However, in the first semester, the sector collapsed more than 30%, so in the year it still loses 32.12 percent.

Analysts explained that the progress of this sector is due to the boost given by its main component: Amazon, whose shares have risen 6.30% since June 30.

down

The rest of the sectors increased in the second semester the losses that they had in the first.

The Real Estate sector leads the declines in the second half, with a drop of 16.66%, trading at 213.16 dollars, driven down by increases in interest rates.

Alain Jaimes, Stock Market Analyst at Signum Research -a stock market and financial analysis firm-, commented that the Real Estate sector is sensitive to increases in interest rates, because if the expectation is that rates remain high, people they have “few incentives” to purchase a home.

“The cost of debt is higher, therefore, the income for companies in this sector will tend to decrease,” added the analyst.

The Communication Services sector has a decrease of 13.48% during the second half of the year. For its part, Public Services lost 12.36%; Information Technology (IT), 8.13%; Materials, 6.88%; Basic Consumption, 6.03%; Health, 4.89%; Financial, 3.85%, and Industrial, 2.87 percent.

sebastian.diaz@eleconomista.mx