Energy stocks weather share market storms
The Australian share market fell 7.6 per cent in June, with only 27 of the top 200 stocks making gains in the final month of the financial year.
Of those stocks to make gains, the majority were energy or commodity plays, reflecting a global trend throughout the month of June.
Both in the Australian and international share markets, high-risk financial stocks, REITs and infrastructure stocks suffered blows, according to Constellation Capital Management’s June 2008 Investment Report.
In the domestic market retailers took a hit, while local banks, insurers and fund managers continued to be sold off with US investment banks and mortgage lenders.
According to the report, energy shares strongly outperformed in the US market, along with commodities, gold and health care shares.
“But other sectors finished June deeply in the red, particularly financials,” the report said.
In June, the Dow Jones fell by 10.2 per cent, the NASDAQ by 9.1 per cent, while the S&P 500 fell 8.6 per cent, in what the report said was “the S&P’s worst monthly reversal in five years”.
Share market falls were also recorded in the Euro exchanges, with high oil prices and local economic and credit crunch concerns slashing profits.
Asian markets also fell in June, with the Japan market falling by 6 per cent, and Shanghai falling by 20 per cent.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
