Hooray! It’s over! August reporting season is done. Normally, I wouldn’t write about it, as it’s often pretty vanilla, but this one delivered the most volatile reporting season on record. There were some big winners and some brutal sell-offs for companies that were deemed to disappoint. More top 50 stocks than ever before fell more than 10% on their results.

Some of the winners and losers included:

Investors seemed to apply laser-like scrutiny to results, guidance and commentary, and even small variances from consensus triggered intense reactions. At times, share price moves felt disconnected from the actual underlying results and outlook, in both directions. Clearly, the animal spirits of markets are alive and well. Fear and greed remain the ultimate drivers.

A survey of brokers reflected this cautious tone: earnings expectations were downgraded for 24 of the ASX100 companies and upgraded for only 14. Smaller companies faced a similar outlook.

Yet it wasn’t all doom and gloom. Overall, more companies beat expectations than missed (see the Financial Review chart below). And the S&P/ASX200 actually rose 3% in August, briefly cracking 9000 points for the first time ever before closing just shy at 8973.10. That marked the fifth consecutive monthly gain.

For me, reporting season highlighted the value of careful portfolio construction and ongoing review. I love building and managing direct share portfolios for clients, and navigating through times like these is where active oversight really matters.

If you’d like me to review your Australian equities portfolio or if you’re an adviser looking for independent support in this area, please reach out here. I’d be happy to help.

Kind regards,

Shelley Marsh
Outsourced Chief Investment Officer (OCIO) & Founder
Wealth Differently

General Advice Warning: Wealth Differently holds an Australian Financial Services licence to provide services to wholesale clients only. The information on this website is only for persons who are wholesale clients as per s761G of the Corporations Act. The information includes general advice which does not consider your particular circumstances and you should seek advice from Wealth Differently who can consider if the strategies and products are right for you. You should also understand that past performance is often not a reliable indicator of future performance and should not be solely relied upon to make investment decisions.

Wealth Differently Pty Ltd AFSL 547820.