november’s performance overview
- After a strong performance during October, equity markets were once again the main casualty of renewed concerns around a potential European financial meltdown.
- The rescue package put forward by the EU in late October was quickly discounted while increasing yields on Italian Government bonds saw solvency concerns shift to the larger economies.
- The replacement of Greece’s and Italy’s leaders combined with ongoing discussions between the various key groups (EU, IMF, G20) failed to restore investor confidence while global hedge fund MF Global folded.
- Equity markets were stabilising at the end of the month following some reasonable US retail sales post Thanksgiving.
- Domestically the AGM season continued with the majority of companies indicating that the operating environment (outside mining investment) remains tough.
- Investors favoured defensive names with the Telecom, REITs, Info Tech and Utility sectors outperforming while the Financials, Resources and Consumer Discretionary sectors lagged.
- The Australian equity market (ASX200) finished November down 4.1%, with the majority of sectors trading lower.
Download the Wrap Up of the Market for December 2011 here.