Domestically, the S&P/ASX 200 Accumulation Index was up 1.21% during the period. Information Technology (+9.4%) was the best performing sector during the period.

Large-Caps Afterpay (APT, +24.4%) and Xero (XRO, +13.8%) drove the gains, following a strong lead from U.S technology peers. Materials (+8.8%) continued their strong run, as iron ore prices remain elevated. BHP Group (BHP, +11.5%) and Fortescue Metals Group (FMG, +28.5%) remained the largest contributors to performance. Utilities (-6.8%) was the worst performing sector, as defensive sectors continue to underperform in the re-opening trade. AGL Energy (AGL, -11.5%) and APA Group (APA, -6.8%) led declines. Health Care (-4.9%) also underperformed as their defensive nature counted against them in a month that largely rewarded cyclical names. CSL (CSL, -4.8%) was the largest contributor to the sector’s performance, however many of the large cap names were down strongly.

International equities were up strongly in December, with the vaccine rally continuing in to Christmas. The Korean markets (KOSPI +10.9%) posted strong gains again in December as key constituents in the pharmaceutical, technology and renewables space gained. Its neighbouring exchanges were also strong, with Japan (Nikkei 225 +3.8%) and Hong Kong (Hang Seng +3.4%) trailing China (CSI 300 +5.1%). The United States’ two exchanges were both up, with the NASDAQ (5.7%) outperforming the S&P 500 (3.7%) due to a resurgence in the big technology names. The United Kingdom (FTSE 100 3.1%) ended higher with Brexit negotiations reaching some semblance of conclusion, while the European markets underperformed (Euro Stoxx 50 +1.7%).

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 (February 2021)

8 February 2021