• Christopher Hall

Australian Market Segments, Trends and Leaders


Australian Market Segments this Month

The smallest companies or Emerging companies, have performed exceptionally well this month compared to the rest of the market.

Emerging companies are flat for the month, whereas Small caps are down -5.1% and Bluechips down -4.3%, similar to the overall market, also down – 4.3%.

In the market drop over the last few months of 2018, the smallest companies were hit the hardest, they also recovered the slowest until July this year.

Since July, the Emerging companies have come from last to first place, up + 14%, compared to the market down -0.2%.

Market Trends and Leaders

The top thematic in the Australian market after the August 2019 reporting season are:

  • International earners: With the AUD down -13% against the USD, even a weak company can boost their earnings if they earn in USD. The better companies are CSL and the like, with most of their operations offshore

  • Property and Bond Proxies: lower interest rates still keep the demand high and a potential soft bottom on the property market has helped

  • Health Care: namely hospital suppliers and diagnostic equipment

  • Engineering and Mining Services: have prospered from a strong mining sector and large infrastructure spending along with low interest rates

  • Software providers and online retailers: very few industries promise returns where the sky is the limit, although software companies are highly scalable. For the companies that are continually exceeding their profit forecasts, investors have bought up their shares and paid increasingly higher prices for them

Podcasts:

We regularly interview industry exports on numerous topics available in the Podcast playlist here.

  1. CSL deconstruction with Rudi Filapek-Vandyck

  2. Unpacking AMP’s first half result

  3. Market Pivot to a minor Rally

  4. Short Sellers cause a market scramble

  5. Quality vs Value Stocks


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