Which market performed best in Q3?
The ASX 200 was the only major market to report positive gains during the third quarter of 2021/22.
Looking at data from FE Analytics, over the three months to 31 March, the ASX 200 returned 2.2% compared to losses by global markets.
It was a case of large-cap stocks being the best performers over the period with the ASX 50 returning 4% and the All Ordinaries returning 1.6% compared to losses of 4.2% by the ASX Small Ordinaries.
Performance of ASX indices during Q3
The ASX 50 included commodity stocks like Woodside Petroleum which was up 54%, BHP up 30%, South32 up 28% and Santos which was up 24.7%.
Dale Gillham, chief analyst at Wealth Within, said: “I do believe this trend will continue, therefore, I would advise investors to stick to the top 50 stocks in the Australian market if they want to achieve some good profits”.
Looking at global markets, the worst-performing major market was the Shanghai Stock Exchange Composite which had lost 13% followed by Japan’s TOPIX and Hong Kong Hang Seng index which both lost more than 9%.
In the US, the Dow Jones had lost 5.2%, the S&P 500 had lost 7.7% and the tech-heavy Nasdaq had lost 10.6% as technology stocks because of the long duration of their earnings in an environment with rising inflation and interest rates.
The FTSE 100 lost 2.5% and the MSCI World index lost 7%.
Performance of developed markets during Q3
AUTHOR
Laura Dew
Recommended for you
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
