Domestically, the S&P/ASX 200 Accumulation Index was up 0.50% during the period. The best performing sector was Materials (+5.8%), as commodity prices recovered and the price of gold rallied. The uncertainty in the market, as well as fears of the increasing money supply due to fiscal stimulus have been key to gold’s rise. Information technology was an outperformer again, spurred once more by Afterpay (APT +25.0%) and helped by cloud service providers NextDC (NXT +17.1%) and Megaport (MP1 +10.4%) – all of which are expected to benefit from the pandemic. Healthcare was a key underperformer during the period as CSL (CSL -6.7%) continued to fall from its April highs as the concerns around collection centre volumes grow. Industrials also underperformed, with concerns about a second wave’s impact on the economy seeing cyclical names weaker.

Internationally, equities finished mostly higher during the period, determined to look through the pandemic despite signs of second waves in many nations. Chinese equities (CSI 300 +12.8%) vastly outperformed peers as COVID cases remain controlled and retail market participants bid the index higher, similar to the speculative behaviour in 2015. Despite this, the index still lags the NASDAQ on a 12-month basis, as the big tech stocks pushed the US Index 6.8% higher during the month, with the S&P 500 adding 5.5%. Asia was mixed with Korea (KOSPI +6.9%), Hong Kong (Hang Seng +0.7%) and Japan (Nikkei 225 -2.6%) underperforming the broader emerging markets (MSCI EM +7.6%). Lagging the rest of the world was Europe (MSCI Europe -0.7%) and the UK (FTSE -4.4%), despite landmark fiscal policy announced within the period.

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.