A higher net interest margin drove a 10 per cent increase in CBA’s net profit after tax, while Wesfarmers benefited from a strong performance by Kmart Group and the chemicals division. But with much of the upside for these companies already priced in, investors should be clear about valuations before buying in.
Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.
At the peak, there were 30 challengers nipping at the heels of established industry and retail superannuation funds. Less than half still exist today, with the survivors demonstrating the value of member engagement and well-designed product offerings.
An explosive report by activist short seller Hindenburg Research led Adani Group to shelve a planned US$2.5 billion equity sale and wiped $120 billion from the multinational conglomerate’s market value. While activist short reports should be taken with a grain of salt, market observers said, some of Hindenburg’s key claims are likely valid – including that Adani was vastly overpriced.
Analysts agree Australia’s big four banks are entering 2023 from a position of strength as they pass on rising interest rates to borrowers. However, headwinds remain, and the total return picture for shareholders looks more complex.
Markets have moved sharply to reprice Chinese assets upwards after the world’s second-largest economy signalled its reopening. However, some doubt the sustainability of the current bull market, saying key ingredients for a lasting recovery are missing.
Exchange-traded funds continued to attract inflows from investors in 2022, albeit at a slower pace thanks to rising interest rates and market volatility. Resources and mining-focused funds were clear standouts in a challenging year.
The prudential regulator will more closely examine the valuation methodologies super funds deploy to value private assets to address an emerging gap between the performance of listed and unlisted property.
Disruptor wealth platforms like HUB24, Netwealth and Praemium have been taking market share from the mostly bank-aligned platforms for years. While waning investor sentiment has hurt inflows recently, analysts say these platforms are still well positioned in the shift away from incumbents.
After equity markets recalibrated during a volatile 2022, the market is anticipating a tale of two halves in 2023. Investors should look for opportunities in established and high-quality global stocks, with a focus on corporate earnings.
