Research Monitor - June 2016 Edition Research08 Apr 2016

The Australian Share Market, as measured by the S&P/ASX300 Index, fell by 3.9% on a price basis and 2.6% on an accumulation basis during the March quarter.


January was the weakest month, with the accumulation index down 5.45%, as concerns over the pace of growth in China, and the impact of weak oil prices on the creditworthiness of energy companies took their toll on world markets. February was not as bad, with some recovery in prices following a weak start to the month. Share prices ended up 1.7% lower in February, despite being down almost 5% for the month at one stage.

A rebound in Chinese markets and a recovery in commodity prices saw some sharp rebounds in resources stocks from a low point of down 15.4% to the 20th of January, to a high point of being up 10.8% on the 7th of March. Resource stocks ended the quarter up 4.4%.

The best performing sector was Capital Goods thanks to the strong performance of thinly traded Cimic Group (CIM). At the other end of the spectrum were Financial Services stocks with both the Banking Index and the Diversified Financials Index off over 10% for the quarter. The Diversified Financials Index is highly correlated to the market due to the prevalence of funds managers in the index. At its low point, the index was down 25% for the quarter, before recovering slightly to be down 15%.

The banking sector also took a hit during the quarter, being down 16% at one stage, recovering to be only down 5% before selling off again to be down 11.2% for the quarter.


Read the full report






Related Articles
Research01 May 2020 Research Monitor - June Quarter 2020 Edition
INSIDE THIS ISSUE Q1 2020 Performance: The advent of the new coronavirus outbreak is one of those events often referred to as “Black Swans”. Banks and dividends: The bad debt c... Read More
Research20 Jan 2020 Research Monitor - March Quarter 2020 Edition
INSIDE THIS ISSUE: Q4 2019 Performance. Investors who avoided the banks and stuck with the pharma sector would have handsomely outperformed the index. 2020 Outlook for ASX200. ... Read More
Research17 Oct 2019 Research Monitor - December Quarter 2019 Edition
INSIDE THIS ISSUE Q3 2019 Performance. There were once again some spectacular returns amongst small companies. Investing in a low interest rate environment. Investors need to f... Read More
Research05 Jul 2019 Research Monitor - September Quarter 2019 Edition
  INSIDE THIS ISSUE Is the Australian economy turning the corner? Overall, with lower interest rates, tax cuts and an improving fiscal picture, the Australian economy is set ... Read More
A - Z  % Change  
{{data.Symbol}} {{data.CompanyName}} {{data.Close}} {{data.AsAt | date :'shortTime'}} {{data.Movement | number : 2}} {{data.MovementPercent | number: 2}}%