Market wrap: The best and worst performers on the ASX


Over the past few months our attention has been on multiple interest rate rises, a potential recession and the possibility of the world banking system experiencing another GFC-style event.

However, there is nothing being said about how individuals can ensure they live a comfortable lifestyle, so they are not overly affected by these events.

The average 30-year-old male has $27,000 in superannuation, while females have $22,000. This suggests that millennials have $30,000 to $40,000 less in super than they will need for a comfortable retirement.

market wrap-up financial sector all ordinaries sharemarket

Research also indicates that if you are 60, the gap is more than $230,000 with the average Australian male retiring on around $200,000, while for females, it is much less.

We all desire a comfortable retirement but to achieve that we need to accumulate sufficient savings to fund that lifestyle into the future. ASIC's Money Smart website suggests that couples need in the order of $700,000 to fund a comfortable retirement.

These figures are unlikely to be a surprise, as this information has been repeated by the financial industry for decades. So, the question that needs to be answered is if we know how much we need in retirement, why do so many fail to plan for this?

I've been teaching the laws of wealth creation for decades and I know those who follow them can live a comfortable lifestyle today and into the future. The good news is that these laws are not hard to follow if you are prepared to make some wise decisions.

So, what are the three laws?

  1. Spend less than you earn
  2. Invest wisely
  3. Leave it alone, so your money can compound.

Sadly, many fail to get started with the first rule to wealth creation, while the majority pretty much ignore the other two. We know there are three things that are certain in life, birth, death and taxes, if you are reading this then you have already accomplished two of these.

The lifestyle you lead will have a direct correlation to the decisions you make today. If you want to live a better lifestyle in the future, you need to start planning today how you're going to get there. It's far easier than you might think to follow the three laws of wealth creation.

The best and worst performing sectors this week

The best performing sectors include Materials up more than 3% followed by Information Technology up more than 2% while Energy is up more than 1%. The worst performing sectors include Utilities, which is just in the red followed by Communication Services and Healthcare, as they are both just in the green for the week.

The best performing stocks in the ASX top 100 include Next DC up more than 12% followed by Lendlease Group up more than 9% and Downer EDI up more than 8%. The worst performing stocks include Block down more than 6% followed by the Star Entertainment Group down more than 4% and Atlas Arteria down more than 3%.

What's next for the Australian stock market

The Australian stock market is up around 2% in April and up more than 6% since the low on 20 March with the strong rise allaying the fears investors have had over the past few months.

Consumer Discretionary has been the big mover up more than 12% since the start of the year with Information Technology only marginally behind. What is slowing our market rise right now is the Financials, Energy and to some extent Materials sector.

Financials and Materials are by far our biggest sectors accounting for almost 50% of the total market size. Given this, for our market to be bullish both the Financials and Materials sectors need to move in the same direction, which I believe may occur very soon.

In the short term, I expect the All Ordinaries Index may have one or two weeks down more than the next month, although I believe the move will be short-lived before the market rises once again.

There are many stocks in the top 50 that are looking interesting right now and those who take the time to properly analyse both the fundamental and technical data, will be well placed to take advantage of the opportunities when the time comes.

As always, we need to wait for confirmation that the bull run has returned and while this is close, it is still too early to jump in just yet.

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Dale Gillham is chief investment analyst at Wealth Within Limited (AFSL 226347). He also serves as the head trainer at the Wealth Within Institute (RTO 21917). He has more than three decades of experience in the investment industry, and is the author of How to Beat the Managed Funds by 20%, Dale's qualifications include an Advanced Diploma and a Diploma of Share Trading and Investment. He co-hosts the Talking Wealth Podcast, and his work has appeared in The Australian Financial Review, New York Business Journal, Wall Street Select and more.