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
- The German DAX Finished Up for the Third Straight Positive Year up 15.79% for 2021 – TRADERS COMMUNITY
- Spain’s IBEX Worse Performing European Stock Market in 2021, Finished Up 7.9% – TRADERS COMMUNITY
- FTSE 100 Recovers in 2021 To Be up 14.3% After 2020 Annus Horribilis – TRADERS COMMUNITY
- France’s CAC 40 Bourse Lead Europe Higher in 2021 up 29% For the Year – TRADERS COMMUNITY
How Global Indices fared in 2020
- In the U.S. the S&P 500 and Dow closed at record levels at the year end.
- The tech heavy Nasdaq led the charge in 2020 up 43.64%, the largest gain since 2009
- S&P was up 16.26%. Since 2010 the S&P is up 240%, though 57% of the gain in the S&P was from just three stocks Microsoft, Amazon and Apple
- The Dow is closed up 7.25% after being down most tof the year, the DJIA was down over -36% at the March low
- In Europe the best performer was the German DAX which rose +3.6% for the year.
- Spain’s IBEX 30 was an even worse performer than the FTSE 100 down -15.5%.
- Italy’s MIB fell -5.4%,
- The French CAC 40 fell -7.1%
- The British FTSE 100 dumped. -14.3%
- The Australian ASX 200 Stock Market Closed Down 1.5% in 2020
- Japan’s Nikkei gained 16%,
- China’s Shanghai composite rose ripped 14% during 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.
From The TradersCommunity News Desk