Australian shares closed the quarter on a high note this week, as the banks rallied on the release of the Hayne Royal Commission’s report.
But that couldn’t disguise the fact that the September quarter was a miserable month for most investors and fund managers.
The ASX 200 index closed at 6207.6 on Friday, up 13 points, or 0.2% and for the quarter, but down 1.77% for the month.
The index hit a fresh 10-year high on the back of a positive earnings season before falling 3.5% in the two weeks following as trade and tariff between the US and China boosted uncertainty and an emerging market crisis (and fears about China) – all hurt investor sentiment.
The major factor for the local market was the way disclosures from the Hayne royal commission crimped momentum and damaged the shares of banks especially, but also insurers. Investors are kidding themselves if the banks have escaped further costs and many excitable types assumed on Friday afternoon.
This all means quite a few Australian fund managers are going to have below average quarter unless they have been in some of the hot techies such as Appen and Aftertouch Pay.
The major banks hurt the index for most of the week but rallied on Friday following the release of the royal commission’s interim report, wiping most of their losses from the previous four sessions, but still closing down on the week.
Westpac fell 0.8% to $27.93 over the week, Commonwealth Bank dropped 0.7% to $71.41 and ANZ closed the week at $28.18, down 1%. NAB closed the week in the green, up 0.5% to $27.81.
For the month the CBA rose 0.24%, but lost 2% over the quarter. Westpac saw its shares fell 2.1% in September, but 6.68% in the quarter. NAB shares rose 1.46% for the quarter but shed 2% in September and the ANZ saw its shares down 4.8% in September and 0.21% in the quarter.
The AMP was again the big loser – its shares off 0.9% last week, 4.5% for September and a nasty 10.4% for the quarter.
Brent crude oil prices hit a near four-year high last week and will look to go higher this week. BHP Billiton was solid last week due to its oil exposure, its shares rising 3.1% to $34.63.
That gain helped BHP shares to rise more than 4% for the month, and gain the stock a positive 2.12% gain for the quarter.
Woodside shares jumped 4.4% to $38.58, Origin Energy shares were up 3.8% to $8.26, Oil Search lifted 4.9% to $9.03, Santos rose 3.6% to $7.26 and Beach Energy closed the week at $2.14, up 12.6%.
For the month Woodside shares rose 4.46% and 8.8% for the quarter, Santos shares jumped 7% in September and 15.8% in the quarter, but shares in Oil Search lagged – rising by just on 0.8% for the month and 1.46% for the quarter.
Beach shares rise 10.3% for the month and nearly 22% for the quarter, which will help Kerry Stokes and his Seven Group Holdings which controls 25% of Beach. In fact, Seven Group shares rose 1.7% last week, 8% in September and a tasty 18.9% in the quarter.
The laggard was Origin – despite last week’s gain, it lost nearly 4% in September and a rather nasty 17.6% over the quarter.
A2 Milk shares slumped 9.4% last week lower at $10.24 and that left the shares down 11% for the month and 2.6% for the quarter as the performance bite vanished from the stock.
Rising oil prices hit Qantas after its record earnings in August. The shares lost 2% last week to end at $5.90 and shed 8% in September and 4% for the quarter.
Among the emerging tech stocks, Appen shares lost 8.8% for the month but rose 4.5% in the quarter, but Afterpay Touch stood out with the shares up more than 13% last week, though down 1% for the month, but up a massive 92% for the quarter.
And in the retailers, the giant supermarkets’ chain, Woolies had a poor time – while the shares rose 1.9% last week they were down 0.8% for the month and 8% for the quarter. Wesfarmers shares were steady last week, down 3.1% in the month and up 1% for the quarter.
Myer shares lost ground last week, slipping nearly 8% but that still left them (from a low base) up 14.6% for the month and 37.8% for the quarter.
