A monthly review and outlook of the global listed infrastructure sector.

Market review - as at May 2017

Global listed infrastructure increased in May as higher traffic volumes, robust earnings numbers and secure market positions underpinned stock price increases for a broad range of sectors.

The best performing sector was Airports, which continued to benefit from positive momentum in passenger volume growth. Gains were led by European and Asian operators, which rallied on airline capacity additions and duty-free sales growth.

Pipelines underperformed as the oil price continued its recent downward trend. Despite this dip, the US$7.1 billion acquisition by Canada’s Pembina Pipeline Corp (flat, not held) of peer Veresen Inc (+21%, not held) highlighted the value being ascribed to these high quality, long life assets.

The best performing region was Europe, which gained as Macron’s comfortable defeat of Le Pen in the French Presidential election added to the sense of a stabilising political backdrop. Latin America was led lower by Brazilian infrastructure stocks, which sank following revelations that President Temer had been recorded, allegedly, endorsing the payment of bribes. The controversy sparked concerns that government reforms aimed at overhauling Brazil’s finances and labour markets may be derailed.


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All stock and sector performance data expressed in local currency terms. Source: Bloomberg.