Agri sector shows promise
Investors may care to look at agribusiness as an option amid the continuing global uncertainty, according to the latest Commonwealth Bank Agri Indicators Report.
The report suggested “there is a glimmer of hope for Australia’s listed agribusiness sector”, with data over the past month recording an upturn in performance.
Commonwealth Bank executive general manager, agribusiness, Jon Sutton said the agribusiness sector had seen a swing back into positive territory during the month to November 11, delivering investors a gain of 0.7 per cent, just above the S&P/ASX accumulation index, which gained 0.6 per cent.
“The slight gains recorded for agri over the past month are encouraging,” he said. “Although the sector has had a difficult 12 months, it has still managed to outperform the broader market by more than 10 per cent over the same period.”
Sutton said earnings prospects over the coming year remained very strong, in excess of 30 per cent, but new investors needed to proceed with caution.
“There is no way to predict short-term outcomes, but we do expect the market to return to order at some point,” he said.
AUTHOR
Mike Taylor
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