Seventh loss in nine months for equities
The Australian equity market has recorded its seventh negative month of the last nine months, with a 4.7 per cent loss in July.
A deterioration in the outlook for consumer spending and lower commodity prices saw the S&P/ASX 300 index drop 16 per cent over 12 months. Mid cap stocks outperformed large and small cap stocks.
Energy and materials stocks were sold off due to a fall in the price of oil and other commodities, and BHP Billiton and Woodside Petroleum topped the negative contributors list at minus 9 per cent and minus 20.2 per cent respectively. Westpac, Telstra and several infrastructure related stocks topped the list of positive contributors.
The slowing economy and continuing fallout from the sub-prime crisis contributed to falling global share markets, and the depreciation of the Australian dollar against major currencies saw returns enhanced on an unhedged basis. Value stocks have outperformed growth stocks for the first time since April.
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