From concerns that the Federal Reserve would taper its support for the economy to fears over a wider conflict in Syria, the third quarter was full of cliffhangers that resolved in favor of investors.
But as the quarter ended Monday, stocks around the globe dived on the prospects of a federal government shutdown.
Despite the quarter’s drama, the Bloomberg Colorado Index, a basket of 83 companies based in the state, rose 8.6 percent, handily beating the 1.5 percent increase in the Dow Jones industrial average and the 4.7 percent gain in the Standard & Poor’s 500.
Century Casinos, based in Colorado Springs, was the state’s top performer, rising 65.3 percent from July 1 to Sept. 30. Company president Peter Hoetzinger attributed the gain to a strong second-quarter financial report released in August that included a 59 percent increase in revenues.
“We have exciting projects in the pipeline, such as a racetrack and casino in Calgary, another cruise-ship casino to open early next year and an application for a casino license in Vienna, Austria,” he said in an e-mail.
Biotech firm Venaxis, which is nearing approval for a promising appendicitis test, wasn’t far behind with a 61.7 percent gain, followed by UQM Technologies, up 51.7 percent.
Petroleum producers were among the strongest performers, thanks to higher oil prices from Middle East turmoil and an improved outlook for natural gas.
Forest Oil and Cimarex Energy rose nearly 50 percent during the quarter, and Triangle Petroleum, Bonanza Creek Energy, Kodiak Oil & Gas and Synergy Resources all gained a third or more in value.
Strong performers among the state’s larger nonenergy companies included Level 3 Communications, Starz and Arrow Electronics.
Despite the flux from rising interest rates and geopolitical uncertainty, investors during the quarter increasingly favored riskier asset classes, with a strong showing for emerging markets, the Nasdaq composite and previously maligned European shares.
“Anything that had any exposure to interest rates was subpar,” said Mike Gegen, a first vice president with RBC Wealth Management in Greenwood Village.
Defensive stocks, such as utilities and real estate investment trusts, along with the ultimate hedge against turmoil, gold-related stocks, underperformed.
The state’s worst performer in the third quarter was Vista Gold Corp., down 52.5 percent. Golden Minerals was down 30.1 percent, and potash-mining company Prospect Global Resources was off 24.4 percent.
Top performers
The following Colorado stocks were the state’s best performers from June to September.
Company, Q3 Return
Century Casinos, 65.3%
Venaxis, 61.7%
UQM Technologies, 51.7%
Forest Oil, 49.1%
Cimarex Energy, 48.3%
Bottom performers
The following Colorado stocks had the worst showing in the third quarter.
Company, Q3 Return
Vista Gold, -52.5%
Golden Minerals, -30.1%
Prospect Global Resources, -24.4%
Gold Resource, -24.1%
Double Eagle Petroleum, -23.2%
