Research Monitor - September 2016 Edition Research05 Jul 2016

The Australian Share Market, as measured by the S&P/ASX300 Index, rose by 3.0% on a price basis and 4.0% on an accumulation basis during the June Quarter.

 

Markets continued to recover in the early part of the quarter with both April and May posting solid gains of 3.34% and 3.14% respectively.

 

June was marred by the unexpected outcome of the United Kingdom’s referendum vote on leaving the European Union. Prior to the “Brexit” vote, the market had been down 1.7%, before falling to be down 5% for the month before a strong rally in the last day of trading of the quarter saw the index ending up down 2.4% for the month of June.

 

Materials and Healthcare sectors were the best performers over the quarter, both rising more than 10%. Ramsay Health Care (RHC) lead the way with a 18.5% return for the quarter amongst the healthcare names, whilst Resources bellwether BHP Billiton (BHP) rose 12.2% for the quarter. Returns from the Banking sector were subdued, with ANZ Banking Group (ANZ) the best of the majors up 4.4%, followed by Commonwealth Bank (CBA) up only 1.4%, National Australia Bank (NAB) down 0.8% and Westpac Banking Corporation (WBC) down 1.6% for the quarter.

 

Some former market leaders such as Blackmores (BKL) down 25.3%, Flight Centre Travel Group (FLT) down 25.8% and Qantas Airways (QAN) down 29.0%, came back to earth following changes to the profit outlooks of the businesses. Brexit exposed stocks such as BT Investment Management (BTT) down 16.6% and Henderson Global (HGG) down 20.8% were sold off heavily at the end of the month.

 

A bright spot was once again the Gold Sector, with global uncertainty and low interest rates making the case for gold investing compelling. The price of gold rose 7.3% for the quarter and is now up 25.0% year to date. Newcrest Mining (NCM), the largest listed gold stock, rose 37.0% for the June quarter. Most gold stocks in the index rose between 30% and 50% for the quarter, with the stand-out being Resolute Mining (RSG), up 136% from $0.545 to $1.285 at the end of June. 

 

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}}%