Listed agribusiness posts positive May returns
The listed agribusiness sector delivered a 3.7 per cent return in the month to May 15, despite ongoing elevated volatility, according to the Commonwealth Bank Agri Indicators Report.
The index has returned nearly double that delivered by the S&P/ASX 200 for the past three months, according to Commonwealth Bank Agribusiness executive general manager Brendan White.
He also compared the returns for May to an “almost flat result” of 0.8 per cent for the broader S&P/ASX 200 accumulation index for the month.
The listed agribusiness sector is forecast to return 8 per cent for the 12 months to May 2010, despite ongoing elevated volatility of 30 per cent, White said.
This consensual forecast is based on the back of stronger earnings expectations for some stocks in the sector, he said.
Meanwhile, the global market crisis has reportedly resulted in the loss of about $16.4 billion from the listed agribusiness sector, according to the Australian Agribusiness Group (AAG).
Over the past 10 months the 60-company AAG Agri-Index reportedly saw a 61 per cent decline from its peak value in June last year, when there was total market capitalisation of $49 billion.
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