California in Context: Stock Index Performance and IPO Market Share

Stocks of California-based companies have fared less well, on average, than the blue-chip Standard & Poor’s 500-stock index over the last year, measured through March 31. But a broad index of 250 California issues has beaten the S&P; over the last five years-- helped by the strong performance of technology stocks. California indexes created and monitored by Franklin Templeton mutual funds also show that the broad California index and each of tree regional indexes have all beaten the Russell 2,000 index of smaller stocks over the last five years. The weakest performance of the group, in each period, has been by the Orange County stock index.

One-Year Price Change

S&P; 500: +46%

California 250: +44

Southern California 100: +42

Russell 2,000: +40

Bay Area 100: +36

Orange County 50: +32

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Three-Year Price Change

California 250: +120

S&P; 500: +120

Bay Area 100: +108

Southern California 100: +106

Russell 2,000: +84

Orange County 50: +72

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Five-Year Price Change

Bay Area 100: +233

California 250: +185

S&P; 500: +144

Southern California 100: +126

Orange County 50: +124

Russell 2,000: +110

Notes: Price changes only (dividends not included). All data through March 31

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Initial Public Offerings: The California Connection

California accounts for about 13% of U.S. economic output, but in recent years the state has produced about 20% of the companies successfully launching initial public stock offerings-- an indication of the level of innovation in the California economy. The average size of a California IPO, at $38.9 million (1996 through April 30 of this year) compares with the $59.4-million U.S. average-- which means smaller companies are making it to market in California.

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Number of IPOs, 1996-98

California: 314 (19.5%)

Rest of U.S.: 1,298

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Value of IPOs, 1996-98

California $12.2 billion (12.7%)

Rest of U.S. $83.6 billion

Note: IPO totals exclude closed-end mutual funds and real estate investment trusts.

Sources: Franklin Templeton, Bloomberg News, Securities Data co.