Seventh loss in nine months for equities
The Australian equity market has recorded its seventh negative month of the last nine months, with a 4.7 per cent loss in July.
A deterioration in the outlook for consumer spending and lower commodity prices saw the S&P/ASX 300 index drop 16 per cent over 12 months. Mid cap stocks outperformed large and small cap stocks.
Energy and materials stocks were sold off due to a fall in the price of oil and other commodities, and BHP Billiton and Woodside Petroleum topped the negative contributors list at minus 9 per cent and minus 20.2 per cent respectively. Westpac, Telstra and several infrastructure related stocks topped the list of positive contributors.
The slowing economy and continuing fallout from the sub-prime crisis contributed to falling global share markets, and the depreciation of the Australian dollar against major currencies saw returns enhanced on an unhedged basis. Value stocks have outperformed growth stocks for the first time since April.
AUTHOR
Benjamin Levy
Recommended for you
The Financial Services Council has appointed a new deputy chair for its board.
ASIC chair Joe Longo has told compliance professionals they need an “attitude of compliance” beyond written policies, how can AFSLs achieve this without alienating their advisers?
Peri and menopause training founder and TV journalist Shelly Horton has hit back at calls for businesses to introduce menopause leave.
Pendal has told investors it will start winding up its Enhanced Credit fund from December, its third fund closure this year.
