News
03 February 2014
February Market Update
Reporting Season…more to be pleased with than not The Australian share market performed strongly during February in response to a surprisingly positive reporting season, outperforming the US market for the second consecutive month. There was no major economic data influencing the market during the month. The RBA left interest rates on hold. Domestic economic data released during February was slightly softer than expected. The best performing sector in February was Consumer Discretionary, followed by Information Technology. The worst performing sectors were Telecommunications and Healthcare. This month we take a look at the broader implications of the February reporting season. On the whole, reporting season was better than the market had anticipated, but there was not a lot of evidence of a recovery in revenue growth; rather, it was driven by cost reductions, lower interest expense, and the declining currency.