Top global sectors: Health Care;
Telecoms; and Utilities
􀀗Bottom global sectors: IT; Materials;
and Consumer Discretionary
􀀗 Utilities and Financials move up;
Consumer Staples moves down
More of the same is perhaps the best description of this
month’s edition of the HSBC Sector Scorecard. Defensive
sectors continue their dominance of the global rankings,
retaining the top four positions, with cyclical sectors
continuing to struggle.
None of this is particularly surprising given the rapidly
deteriorating economic environment which has obviously
boosted the relative attractions of the non-cyclical sectors.
Health Care and Telecoms retained their number one and
two ranks respectively. Utilities moved up to third place
leapfrogging Consumer Staples which slipped one place to
fourth. At the regional level we find that these defensive
sectors continue to dominate, occupying the top four
positions in every region in our universe.
The strong performance of the defensive sectors is being
driven by both the price momentum and earnings momentum
components. On valuation, they score less well (except
Health Care which is second).
There were no changes at the bottom of the rankings with IT in
last place followed by Materials and Consumer Discretionary.
Background
The Scorecard is intended as a useful tool for fundamental
analysis, providing a clear ranking of regional and global
sectors on the basis of several key factors. We focus on three
broad sector attributes, which loosely correspond to
momentum, growth and value investing: Price momentum,
Earnings momentum and Valuation.
For each of these key areas we produce a single score per
sector and region in a way that is concise and consistent over
time. Regions covered are Global, US, Europe ex-UK, UK,
Japan and developed Asia ex-Japan.

Scorecards 3
Global sectors 3
Regional sectors: US 4
Regional sectors: Europe ex UK 5
Regional sectors: UK 6
Regional sectors: Asia ex Japan 7
Regional sectors: Japan 8
Global cross-regional ranking of sectors & industries 9
Appendix 1: methodology 14
Three levels of analysis 15
Scorecard tables 15
Scorecard factors 16
Appendix 2: valuation model data 19
Sector valuations and composite ranking 20
Contents