The University of North Carolina Wilmington’s Blue Economy Index (Bloomberg Ticker: BLUEECO) saw gains during February, outperforming broader, global benchmarks that suffered weaker performance.
The Blue Economy Index rose 8.66% from 2,882.49 to 3,132.02. At the same time, the S&P Industrials rose 5.64%, the MSCI All World Index increased 1.24%, and the S&P 500 fell 1.40%.
Supporter Spotlight
The index trackers said in a news release Thursday that the comparatively strong performance “showcases” the blue economy’s “concentrated exposure to ocean-related industries and balanced sector allocation.”
“This month’s returns were defined by strong expectations in infrastructure demand and international economic activity, as well as a sharp decline in large technology and growth stocks.”
The UNC Wilmington Blue Economy Index tracks the economic activity of companies operating on or in oceans and waterways, with a focus on environmental sustainability. The index was developed through a collaboration between UNC Wilmington’s Center for Innovation and Entrepreneurship, the Alliance for the Blue Economy, or AllBlue, the Cameron School of Business, and it relies on data from FactSet.
The index aligns with the World Bank’s definition of the Blue Economy: “the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of the ocean ecosystem.”
“The index represents a fusion of academic insight, environmental science, and financial market expertise,” according to the university.
Supporter Spotlight
February’s performance was supported by strong gains in industrial and utilities sectors, which benefited from rising expectations for global infrastructure spending and energy demand. Sector rotation also played a key factor as investors transitioned from technology to industrial sectors.
Industrials climbed 16.61% after investors rotated into companies tied to infrastructure, heavy manufacturing and energy systems. A large wave of AI storage and network demand helped prop up the sector’s performance, which signaled higher future revenue and earnings, according to the release.
Consumer staples, supported by increased expected demand and improved profitability in the global seafood and animal feed markets, increased 8.06%. The sector also gained from higher aquaculture prices in Asian and North American markets, which improved margins for fishing and processing companies.
Utilities rose 5.60%, driven by expanding economies and the rapid build-out of data centers, AI computing, and renewable energy systems. Furthermore, many utility companies are expanding renewable energy projects which investors view as long-term growth opportunities, the analysts said.
Consumer discretionary spending gained 3.12%, supported by steady continued growth in travel and tourism spending.
Doosan Corp. saw a 50.65% gain and topped the index for February thanks to new legislation that provided a regulatory framework for modular reactor development and export.
Harbin Electric Corp. saw a 41.88% gain thanks to an increase in Chinese gas turbine demand and the company’s financials, which forecast a 57% increase year-over-year net profit and 33% revenue growth.
Kawasaki Heavy Industries, Ltd. Realized a 40.31% gain based on increased submarine and defense systems production after Japan planned to increase defense spending to 2% of its GDP.
More information about the Alliance for the Blue Economy is online at https://uncw.edu/research/centers/innovation-entrepreneurship/events-programs/programs/all-blue.
