Last year proved to be a tough one for Hawai'i stocks as the subprime mortgage crisis, rising oil prices and the interisland airline competition all weighed in on stock prices.

While broader markets showed gains — the Dow Jones Industrial Average was up 6.4 percent and the Nasdaq Composite rose 9.8 percent — the number of Hawai'i issues showing declines outnumbered gainers by a 2-to-1 margin among the state's 10 largest publicly traded companies.

The share price of seven of the companies declined, while three gained. The performance of local stocks was more in line with the Russell 2000 index, which mainly tracks stocks with small capitalizations, such as those found in Hawai'i. It fell 2.8 percent for the year.

Local companies' share price declines were led by Central Pacific Financial, which lost more than half of its value during the year. The tough interest rate environment and turmoil in the financial markets sent shares of local banks tumbling.

On the other end of the scale was Hoku Scientific, which soared more than fourfold.

Hoku wasn't alone in showing a spectacular gain and was second-best in the state if a handful of penny stocks are included in the review. In this respect, Castle Group Inc., parent company of Castle Resorts & Hotels, was up a couple of percentage points more than Hoku's at 339 percent.

HOW LOCAL COMPANY STOCKS FARED

ALEXANDER & BALDWIN INC.

Dec. 31 close $51.66; one-year gain: 16.5 percent.

The owner of Matson Navigation Co. and real estate operations rose, helped by increasing profit and revenue. Through the first three quarters, A&B's earnings totaled $105.8 million. That compared with net income of $95.5 million in the similar 2006 period.

BANK OF HAWAII CORP.

Dec. 31 close $51.14; one-year decline: 5.21 percent.

The state's No. 2 bank's third-quarter net income was up just 1.8 percent due in large part to higher interest rates.

BARNWELL INDUSTRIES INC.

Dec. 31 close $12.36; one-year decline: 48 percent.

The Honolulu-based real estate, drilling and energy company reported earnings were lower in its fiscal year ended Sept. 30, compared with the results in fiscal 2006, its best year.

CENTRAL PACIFIC FINANCIAL CORP.

Dec. 31 close $18.46; one-year decline: 52 percent.

The parent company of Central Pacific Bank had third-quarter income fall 55.8 percent after the company downgraded 12 loans totaling $92 million to California developers hard-hit by the subprime crisis.

CYANOTECH CORP.

Dec. 31 close $1.40; one-year decline: 26 percent.

Kailua, Kona-based Cyanotech narrowly avoided being delisted by the Nasdaq Stock Market after failing to timely file required financial reports with the Securities & Exchange Commission. The maker of nutritional supplements also announced that Gerald Cysewski left his positions as chairman, president and chief executive officer to become chief scientific officer. The move is part of a strategic shift in the company's business model from wholesale to retail sales of microalgae products such as natural Astaxanthin and spirulina.

HAWAIIAN ELECTRIC INDUSTRIES INC.

Dec. 31 close $22.77; one-year decline: 16.3 percent.

Third-quarter earnings at HEI, the state's largest electric utility and owner of American Savings Bank, fell 38.2 percent due in large part to a regulatory requirement that its utility subsidiary refund $15 million to customers on O'ahu.

HAWAIIAN HOLDINGS INC.

Dec. 31 close $5.10; one-year gain: 4.1 percent.

The parent of Hawaiian Airlines said in November that it plans to invest up to $4.4 billion to acquire new jets. In October, a federal bankruptcy judge ordered Mesa Air Group, the parent of go! airline, to pay Hawaiian $80 million for misusing confidential business information. Mesa shares fell 63.9 percent on the Nasdaq market this year to $3.09. Hoku Scientific Inc.

HOKU SCIENTIFIC INC.

Dec. 31 close $11.40; one-year gain: 337 percent

Kapolei-based Hoku continued a transformation from fuel-cell technology developer to a manufacturer of solar power panels in 2007. Major developments included groundbreaking on a $260 million polysilicon production plant in Pocatello, Idaho, which will have an initial payroll of 200 employees. Additionally, Hoku Scientific, which also has benefited from technology tax credits, announced plans to sell its Kapolei headquarters. However, Hoku has not announced plans to move its headquarters outside Hawai'i.

ML MACADAMIA ORCHARDS

Dec. 31 close $3.47; one-year decline: 43 percent.

Hilo-based ML Macadamia called off an $8.7 million acquisition of Mac Farms of Hawaii LLC. The deal for Mac Farms, which owns the second-largest macadamia nut processing facility in Hawai'i, would have given ML Macadamia the ability to process and market nuts industrially. The deal, which was originally announced in October 2006, fell through after the two companies failed to come to terms.

Maui Land & Pineapple Co.

Dec. 31 close $29.11; one-year decline: 14 percent.

Maui Land & Pine, the state's last producer of canned pineapple, ended its fruit-canning operations on June 30. The company will instead focus on pineapple juice and fresh fruit. The move eliminated 120 jobs, or 27 percent of the company's workforce, and ended more than 100 years of pineapple canning in Hawai'i. Hawai'i's once-famous pineapple export industry — which brought waves of immigrant workers and contributed to the state's multicultural heritage — is a victim of cheaper overseas producers.

Make a difference. Donate to The Advertiser Christmas Fund.