The Australian ASX 200 Stock Market Closed Up 13% in 2021 With Lithium Plays Starring

Australian Blue Chip ASX 200 ended the ASX finished 2021 at 7,779.20 up over 13% for the year. This compares to a loss of just over 1% in 2020 and a gain of over 20% in 2019. All of the 11 main sectors of the share market were higher except information technology and energy in 2021. Tech went from being the best-performing sector in 2020 to the worst in 2021. Battery materials supplier Novonix was the top stock up 660 per cent for the year. The ASX hit a record high during the year despite being hampered by a Sino-Australia trade war.

ASX200 in 2021 

Communications services was the best-performing sector of 2021, with a 43 per cent rise in sector heavyweight, Telstra. There was also a 160 per cent rise in Uniti Group, the sixth best-performing stock in the market. Battery materials supplier Novonix was the top stock up 660 per cent rise for the year.

Tech went from being the best-performing sector in 2020 to the worst in 2021, partly because the sector’s biggest stock, Afterpay became linked to the falling share price of its US acquirer, Block Inc. (formerly Square Inc.) after its scrip-based takeover bid.

The materials sector went from being the second-best to the fourth-weakest-performing sector, mainly due to the iron ore price slump from around $US233 to $U120 a tonne. Fortescue shed 18 per cent after surging 125 per cent in 2020 when iron ore boomed.

The energy sector disappointed, hit by the underperformance of Woodside and Santos. That said six of the top 10 performing stocks for the year were either in the materials and energy sectors. Three of the top 10, Liontown Resources, Pilbara Minerals and Allkem are lithium plays.

How Global Indices fared in 2021

How Global Indices fared in 2020

The Australian dollar rallied in 2020 with stocks after an initial fall in March to close the year strongly having rallied against the US dollar as massive US QE weakened the dollar. The stronger Aussie helped cover losses for overseas investors in the Australian stock market.

AUD W 12 31 2020

 

From The TradersCommunity News Desk