Domestically, the S&P/ASX 200 Accumulation Index was up 3.47% during the period. Information Technology (+9.7%) was the best performing sector.

Growth stocks in general performed well with bond rates falling, forcing investors to consider a potential return to a duration-friendly, low-rate environment. Materials (+6.8%) also outperformed.

Global commodities prices continued their recovery-led run, with iron ore prices reaching new highs. Energy (-4.9%) was the worst performing sector.

Oil prices were lower during the month following an extended period of strength post the vaccine recovery trade. Consumer Staples (-2.6%) also underperformed. The quarterly updates from many retailers disappointed investors, as they cycle earnings from the COVID-19 lockdown activity surge.

Internationally, markets finished largely higher during the month. The US exchanges were the key outperformers (NASDAQ +5.4%, S&P 500 +5.2%) as President Biden’s proposed stimulus measures encourage the growth outlook and key technology names reported strongly during the period. The UK (FTSE 100 +3.8%) and Europe (MSCI Europe ex-UK +1.5%) also finished the month higher as vaccine rollouts allow for a gradual reopening of their respective economies.

The Asian markets were mixed as Korea (KOSPI +2.8%) and Hong Kong (+1.2%) gained while China (CSI 300 +0.0%) came in flat and Japan (Nikkei 225 -1.3%) was down, as a spike in COVID-19 cases led to a state of emergency declared for Tokyo and its surrounding prefectures.

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 (May 2021)

14 May 2021