Domestically, the S&P/ASX 200 Accumulation Index was down 3.66% during the period. Healthcare (+0.4%) was the best performing sector during the month as both Sonic Healthcare (SHL +3.7%) and Cochlear (COH +3.1%) outperformed. Industrials (-0.7%) also fared better than the market, with Sydney Airport (SYD +8.1%) rallying ahead of peers. Energy (-11.6%) was the worst performing sector on the back of weaker oil prices with all oil and gas majors heavily down. Consumer Staples (-8.2%) also performed poorly, with Woolworths (WOW -8.6%) and Coles (COL -4.1%) both struggling after outperforming during the COVID-19 lockdown period.

Internationally, equities were broadly lower in September. Concerns regarding the underlying strength of the global economy as well as pre-US election jitters undermined the long-standing market recovery. Increasing geopolitical tension between China and the United States has also been felt in the markets, with the four worst performers in September being the Hong Kong Hang Seng (-6.8%), NASDAQ (-5.2%), China CSI 300 (-4.8%) and S&P500 (-3.9%). The rest of the international markets were more sedated, with Emerging Markets (MSCI EM -1.8%), the UK (FTSE 100 -1.6%) and Europe (MSCI Europe -0.8%) all down. Japan (Nikkei 225 +0.2%) and Korea (KOSPI +0.7%) bucked the trend to produce small positive gains.

Disclaimer

This document has been prepared by DNR Capital Pty Ltd, AFS Representative – 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. The general information in this document has been prepared without reference to any recipient’s objectives, financial situation or needs. Before making any financial investment decisions we recommend recipients obtain legal and taxation advice appropriate to their particular needs. Investment in a DNR Capital managed account can only be made on completion of all the required documentation.

Source: Motor Trader e-magazine (October 2020)

12 October 2020