The first half of the year has come and gone and as a friend remarked recently it seems more has been packed into the first half of 2020 than any individual year in total.
Despite COVID’19, global equity markets have staged a remarkable recovery and the NZX50 now lies within 6.00% of the all-time highs reached in January this year. The recovery has been uneven with some sectors outperforming others.
This has been reflected in the performance of the five stocks we highlighted at the start of the year to our customer base, which have shown a range of returns. Please see below:
Arvida Group – Down 22.97% (inclusive of dividends)
CDL Investments – Down 13.98% (inclusive of dividends)
Infratil – Down 4.56% (inclusive of dividends)
PGW Holdings – Up 17.23% (inclusive of dividends)
Pushpay Holdings – Up 118.41% (inclusive of dividends)
The above listed have an average return of 18.82%, against an index that was broadly flat (down 0.36% overall) – for all the talk of an “L-shaped” and “W-shaped” recovery the performance of the NZ stockmarket has certainly been “V-shaped”. In saying this we are delighted that the stocks we highlighted as capable of exhibiting outperformance have done so well in the first half.
While some of these stocks may still be suitable for certain types of investors, especially those hunting yield in a low interest rate environment, we are of the view that the growth prospects of some small-medium cap ASX-listed growth stocks may represent better value, dependent of course on investor appetite for risk.
If you would like to discuss any of the ideas we have at present, on the market, sectors of interest, concerns and individual securities to watch, please get in touch with our team today.
This article reflects general views and opinions of Maxim Financial Markets Limited at the time of publication. Nothing within the article should be relied upon as a basis for making any investment decision. Please contact us to seek specific investment advice before making any investment decision. A Financial Advisor disclosure statement is available upon request.