2023 Year Recap | James Hardie and Seven Group Lead Gains with Stellar Year-End Performances
The Australian stock market is likely to conclude 2023 on a higher note than where it began, despite having navigated through a tumultuous journey. Looking at stock performance of companies with market caps greater than A$10 billion, $James Hardie Industries PLC (JHX.AU)$ and $Seven Group Holdings Ltd (SVW.AU)$ have seen the highest gains this year, with increases of 108% and 72%, respectively.
James Hardie
Surging to the forefront as the top performer on the ASX in 2023, James Hardie, the prominent manufacturer of plasterboard and wall cladding materials, has achieved a remarkable 108% increase in its stock value as of December 21st.
Following a period of downturn between August and October, the company's share price has experienced a notable recovery, climbing 40% since the beginning of November. This resurgence is tied to the recent dip in US mortgage rates, which have seen a reduction exceeding one percentage point over a span of eight weeks. In a recent development, the Federal Reserve indicated a halt to its series of interest rate hikes, with intentions to consider rate reductions in 2024. This anticipated move towards lower interest rates is projected to stimulate various segments of the US housing market, a sector from which James Hardie generates its principal earnings.
In addition, the company has implemented a 15% price hike in its Asia-Pacific segment during the September quarter, with its Australian operations being the primary contributor, when compared to the same period in the previous year.
Seven Group
The stock value of Seven Group has also exhibited a significant uptrend in recent months. As a diverse entity that operates and invests across various sectors, Seven Group has holdings in industrial services, media, and energy.
A central component of Seven's industrial services division is $Boral Ltd (BLD.AU)$, which itself has made a notable impression on the ASX this year with an 81% increase in its share price. While Boral independently listed on the ASX, Seven Group holds a 72% majority of the issued shares, thereby asserting a dominant influence. Specializing in the provision of building materials such as cement, concrete, and asphalt, Boral is responsible for contributing 36% to SGH's overall revenue.
Looking ahead, the outlook for the industrial services branch of Seven Group appears robust, although this sector inherently bears a higher degree of risk. The energy sector is known for its fluctuating markets, and the media sector continues to undergo significant changes as it evolves.
Check out the top performing ASX stocks with market caps above A$10 billion:
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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