Australian stocks rebounded last week with a 2.6% increase after falling 1% in the prior week, with the materials and utilities sectors leading gains.
The S&P/ASX 200 index rose in four of the five trading days, climbing 133.4 points to end Friday at 5,246.6.
However, the benchmark stock gauge was down 2.7% in June, largely due to the plunge on June 24 as global markets responded to the United Kingdom’s decision to leave the European Union, widely known as “Brexit”.
- $A falls against greenback on UK vote
Eight of the 10 sectors in the ASX 200 had losses last month. Information technology companies were the hardest hit with a decline of 7.9%, followed by financial stocks, which tumbled 4.5%.
Over a month to June 30:
- Brent oil was little changed
- WTI crude dropped 1.6%
- Iron ore gained 11%
- Spot gold increased 8.8%
- Australian dollar strengthened 3% against the US dollar
Below are the best- and worst-performing ASX 200 stocks for the week ended Friday, July 1 and for the month ended June 30.
|Company/Index||ASX code||Weekly price change|
|Mayne Pharma Group||MYX||+30.7%|
|Seven Group Holdings||SVW||+14.4%|
|Fortescue Metals Group||FMG||+11%|
|S&P/ASX 200 Index||XJO||+2.6%|
|BT Investment Management||BTT||-9.5%|
|Company/Index||ASX code||Monthly price change|
|Saracen Mineral Holdings||SAR||+28%|
|Mayne Pharma Group||MYX||+26.1%|
|S&P/ASX 200 Index||XJO||-2.7%|
|BT Investment Management||BTT||-21.4%|
What to watch this week
Uncertainties resulting from the outcome of the Australian election held on July 2 will weigh on markets, according to CommSec.
“The last hung parliament occurred in 2010. Labor and the Coalition each won 72 seats. It took 17 days of counting and negotiation after the election for Labor to declare it could form government,” said CommSec.
The Australian dollar weakened 0.2% to 74.81 US cents at 11:26am Sydney time.
CommSec said credit downgrades and uncertainty in the United Kingdom continue after the Brexit announcement, even as global markets are regaining their lost ground.
“The Pound is still weaker but all other leading indicators are higher. The market is now looking for a prolonged period of planning and action,” it added.
Against the uncertainties from Brexit and the prospect of a hung Australian parliament, CommSec expects lower transaction volumes in the first trading week of the 2017 financial year, compared to regular years.
Meanwhile, the Reserve Bank of Australia (RBA) board will meet tomorrow to decide on its monthly monetary policy.
Money markets are pricing in a 10% chance of a cut in the official cash rate, CommSec said, adding that investors may also be watching if the RBA would provide any commentary on Brexit.