The Match Out: ASX ends FY23 up more than 10% despite all the negativity!

A quiet session to wrap up FY23, a year where central banks have hiked interest rates at an unprecedented speed taking them to fresh 11-year highs, the US experienced a Banking Crisis, China’s economy was buffeted from aggressive COVID lockdowns and war was waged on Ukraine, to name just a few of the headwinds for equities. The fact the market in price terms has risen more than 10% is just another example of why we, as investors, need to keep an open mind and not let investment decisions be impacted by the barrage of negativity that dominates mainstream press.

Thinking independently, and being prepared to act during FY23 has underpinned a great year for the bulk of our portfolios, and we expect these conditions to continue. In our opinion, we have entered a new cycle that’s going to last for years as interest rates end their more than three-decade-old bear market, implying that markets are going to be dominated by stock and sector rotation as global economic strength ebbs and flows – we’ve certainly seen that in all time frames this year.

As we wrap up the year, and start the next on Monday, a very warm welcome to all of our new members to Market Matters, thanks for seeing value in the service and we’re really excited about FY24, another year no doubt filled with challenges, but plenty of opportunities along the way. Welcome!

• Today, the ASX 200 finished up +8pts/ +0.12% at 7203
• The IT sector was best on ground (+0.83%) while Industrials (+0.46%) & Energy (+0.37%) were also strong.
• Consumer Staples (-0.38%) and Healthcare (-0.31%) the weakest links.
• Link Administration (ASX: LNK) -13.92% fell today after Hesta said they would not renew their fund administration contract.
• Bubs (ASX: BUB) was flat despite lowering the revenue forecast for its China business.
• Downer (ASX: DOW) +4.31% had a great session and is another ‘turnaround’ stock that looks good here. Lendlease (ASX: LLC) also put on +2.24%.
• On the flipside, HUB24 (ASX: HUB) -2.23% was weak and indicative of some profit taking across the high growth stocks that have had a stellar year.
• Iron Ore was flat in Asia today, Fortescue (ASX: FMG) +0.3% & RIO +0.20% mirrored the move.
• Gold was flat overnight, and down in Asia today ~US$1906 at our close.
• Asian stocks were mixed Hong Kong down -0.20%, Japan +0.03% while China was up +0.80%
• US Futures are flat.

ASX 200 Chart - Intraday

ASX 200 Chart - Daily

FY23 Performance Stats – Sectors – Source Bloomberg

FY23 Performance Stats – Stocks – Source Bloomberg

Broker Moves

• Marley Spoon GDRs Cut to Market-Weight at Wilsons
• Adairs Cut to Underweight at Wilsons; PT A$1.20
• Worley Rated New Overweight at Barrenjoey; PT A$17.40
• Pro Medicus Rated New Hold at Jefferies; PT A$63

Major Movers Today

Have a great night

The Market Matters Team

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