ASX winners and losers and what to watch out for in 2023

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“Demand for coal typically peaks in January so some of these shareholder returns could grow into the new year if the energy crisis continues,” said Jessica Amir, strategist for Sydney-based Saxo Capital Markets. But coal prices could “turn off the heat before mid-year as Europe and the US head into the summer and demand for coal will cool.”

lithium rally

Core Lithium (+54 percent), Sayona Mining (+28.5 percent), Mineral Resources (+30.8 percent):

Lithium miners also posted excellent gains, with Core Lithium leading the field.

“In 2022, lithium stocks made new highs as a longer-lasting outlook took hold,” said Saul Kavonic, an energy analyst at Credit Suisse. 2023 could prove to be a pivotal year, testing the thesis “as more supply enters the market and the demand curve falters amid the global economic slowdown,” he added.

Iron Ore Champions

BHP Group (+8 percent), Rio Tinto (+17 percent):

The country’s gargantuan iron ore miners ended the year on a high as China’s abrupt COVID-zero reversal and a steady stream of supportive measures boosted the demand outlook.

But a bold move by China – the world’s largest buyer of iron ore – to centralize much of its purchasing under a new single state-owned company could shake price dynamics and hurt Australian suppliers.

Tech, property loser

Novonix (-86 percent), Megaport (-67 percent)

The two worst-performing stocks in the national benchmark came from the technology sector, in line with a global trend that has seen the rate-sensitive industry suffer. Battery materials supplier Novonix bottomed as operating losses widened and investors took bearish bets.

Cloud service provider Megaport was the second worst performer. The sector’s gauge plunged 34 percent for the year.

Higher borrowing costs make home buying in Australia more expensive and increase the likelihood of default.

Higher borrowing costs make home buying in Australia more expensive and increase the likelihood of default.Credit:Natalie Boog

Centuria Capital Group (-49 percent)

Centuria posted the largest decline among real estate stocks as the sector lagged on higher borrowing costs, making home purchases more expensive and increasing the likelihood of defaults.

The downturn in the Australian housing market shows little sign of easing as Bloomberg Economics expects a bottom to appear in mid-2023.

Bloomberg

https://www.smh.com.au/business/markets/asx-winners-and-losers-and-what-to-watch-out-for-in-2023-20221228-p5c933.html?ref=rss&utm_medium=rss&utm_source=rss_business ASX winners and losers and what to watch out for in 2023

Brian Lowry

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