Hawaiian Electric stock soars on news of merger with NextEra



Hawaiian Electric gains big

Hawaiian Electric Industries (HE) was the biggest gainer for the week ending December 5, 2014. It surged by 16.3% during the week on news of its merger with NextEra Energy (NEE). Hawaiian Electric closed the week at $32.78.

The merger was announced after market close on December 3, 2014. Wall Street welcomed the deal. Hawaiian Electric opened up the gap the next day and closed the day with gains of 14.3%. The stock traded with 10x its average volume for the day. We’ll discuss the deal in detail later in the series.

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Other gainers

In the power utility sector, the top four gainers for the week were middle capitalization (or mid cap) companies. After Hawaiian Electric, Pinnacle West Capital (PNW) was the second biggest gainer for the week in the power utility industry. It gained 4.2% during the week and closed at $65.90 per share on December 5, 2014. Pinnacle West Capital is currently in a multiyear bull run and has consistently been setting new lifetime highs this year.

As noted from the above table, Allete, Inc. (ALE) was the third-best performer on Wall Street for the week ending December 5, 2014. It gained 2.4% during this period.

Both the utility sector and the S&P 500 were nondirectional throughout the week. The Utilities Select Sector Standard & Poors depositary receipt (or SPDR) (XLU) closed the week with a small cut of -0.3%. The SPDR S&P 500 exchange-traded fund (or ETF) Trust (SPY) closed the week ending December 5, 2014, with nominal gains of 0.4%.

While the SPDR S&P 500 (SPY)  is an ETF tracking the S&P 500 (SPX) benchmark index, the Utilities Select Sector SPDR (XLU)  is a key ETF in the power utility industry.

Hawaiian Electric, Pinnacle West Capital, and Allete, Inc. operate as integrated electric utilities.


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