Dow Chemical’s joint venture progress
On April 27, 2017, Dow Chemical’s (DOW) joint venture in the Middle East Sadara Chemical Company (or Sadara) met the milestone of commercializing the entire plastic franchise. Currently, the Sadara facility supplies 32 polyethylene products serving more than 350 customers in 58 countries.
Andrew Liveris, DOW’s chair and CEO, said, “The completion of this milestone positions Dow to strengthen our global materials science franchise by capturing additional consumer demand and extending our competitive advantage through industry-leading integration and feedstock flexibility.”
DOW’s stock price for the week ended April 28
For the week ended April 28, 2017, Dow Chemical closed at $62.80 with a rise of 1.0% for the week. DOW’s stock price traded 3.1% above the 100-day moving average price of $60.93, indicating the stock’s upward trend. On a year-to-date basis, DOW has risen 9.8%. DOW’s 14-day relative strength index (or RSI) of 43 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought and a score of 30 suggests that a stock is oversold. DOW’s 52-week low is $47.51, and its 52-week high is $65.42.
Dow Chemical underperformed the iShares U.S. Basic Materials ETF (IYM), which rose 1.1% for the week ended April 28, 2017. IYM invests 11.5% of its portfolio in DOW. Some top holdings of the fund include DuPont (DD), Monsanto (MON), and Praxair (PX), which have weights of 11.2%, 8.4%, and 5.8%, respectively, as of April 28, 2017.