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Market
commentary
of their business models, whereas others
Below is a summary and highlights from the cut dividends and provided less than rosy
movements this quarter and major changes
to some of the key asset areas: outlooks. Cost controls, debt repayments
and maintaining margins will be critical for
Australian equities the year ahead. Forward earnings
January produced a stellar return of guidance was minimal due to high levels
(+6.23%) however as the quarter of uncertainty. Pricing power and the
progressed, it was clear rising interest ability of companies to pass on additional
rates had started to take their toll on costs to the end user will go a long in
sentiment and as financial conditions determining how they perform in 2023 and
continued to tighten sharply, the equity separate the good from the mediocre.
market began to cool. Although the The Australian market underperformed
quarter ended in positive territory, their global counterparts in AUD terms for
(+3.46%), the final two months fell a the quarter (+9.1%), as the overweight to
combined (-2.60%). big miners and banks worked against the
The February reporting season produced local market this time around. The shallow
a mixed bag. Higher interest rates and a domestic market might be in for a very
slowing economy were the key thematics volatile year as a result of its
heading into a highly anticipated season. overdependence on resources/materials.
At the end of the day, some companies Recent economic data is suggesting a
reported excellent results and record slowdown and whilst the reopening of
profits, indicating exhibiting the resilience China is a positive, it remains to be seen if
