Page 2 - Economic Update - June 2021

ECONOMICS

Financial Market Update

Below is a summary and highlights from the movements this

quarter and major changes to some of the key asset areas.

Australian equities need to be carefully watched and taken into
account. Major themes to come out included
The Australian equity market (as measured by the disparity between pandemic losers (Banks,
the S&P/ASX 200) continued to press forward, Energy, Materials and Travel) which led the
posting a healthy (+4.3%) in the March quarter. winners (Technology, Retail). This was part of
The 12-months to March 2021 ended up an a broader quarterly theme as investors rotated
extraordinary (+37.5%), once the carnage of into Covid losers i.e. “value” orientated stocks at
March 2020 dropped out of the yearly numbers. the expense of previous winners “growth” stocks,
The March quarter was dominated by an up-
beat February reporting season described by was dividends. Dividends per share were revised
some “as the best in the past decade”. Over up approx. 5% over the month. Some 57% of
50% of companies reported stronger half year companies that reported declared a dividend,
EPS growth estimates whilst only 27% missed up from 53% in August. Aggregate dividends are
their forecasts. A number of companies however actually up by 5% on a year ago.
did bring future earnings forward so this will