No break for Dynegy and AES: Stock continues to drop


Nov. 19 2019, Updated 7:32 p.m. ET

Broader markets

Although the power sector and the benchmark indices were down for the week ending on January 30, 2015, the power utilities outperformed the broader markets.

The Utilities Select Sector SPDR (XLU) fell by 1.7% in the week. The SPDR S&P 500 ETF Trust (SPY) is a key ETF that tracks the S&P 500 (SPX) benchmark index. SPY was down by 2.7% in the week.

XLU is a key ETF in the power utility industry.

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Biggest loser

Dynegy Inc. (DYN) saw the biggest drop in share prices for the week ending on January 30, 2015. Its share prices fell by 5.3% in the week.

Dynegy’s share prices were on slippery ground in the last two weeks. This was due to an anticipated delay in its proposed acquisition of generation assets from Duke Energy (DUK) and Energy Capital Partners, or ECP.

The FERC (Federal Energy Regulatory Commission) sought additional information from Dynegy about the deal. The acquisition was scheduled to close by 1Q15. However, regulatory uncertainties raised doubts about the deal’s completion.

Dynegy’s shares are down by more than 13% in the last two weeks.

Other losers for the week

Apart from Dynegy, Covanta Holding Corporation (CVA), AES Corporation (AES), and Exelon Corporation (EXC) were the other top losers in the power utility sector last week. Covanta fell by 3.9% for the week ending on January 30, 2015. AES and Exelon were each down 3.6% during the same period.

AES has been one of the top weekly power utility losers in the last two months. Its share prices tumbled by 15% in the last two months. AES is part of XLU.


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