2024 Half-Year Recap | Healthcare Stocks Take the Lead, Financial Stocks in Strong Position; Tech and Bitcoin ETFs Experience Remarkable Gains
Looking back at the first half of this year, the Australian stock market performed well, with the ASX index repeatedly reaching historic highs, as investors cheered better-than-expected half-year corporate results and held high hopes for interest rate cuts later this year. As of the close on June 27th, the $S&P/ASX 200 (.XJO.AU)$, which mirrors the trend of local blue-chip stocks, had risen by approximately 2.2% year-to-date.
Check Out the Best-Performing Australian Stocks So Far in 2024:
Healthcare companies were among the best market performers, with $Pro Medicus Ltd (PME.AU)$ and $Fisher & Paykel Healthcare Corp Ltd (FPH.AU)$ leading the way. Pro Medicus emerged as one of the best-performing companies in the first half of the year, with the share price soaring over 45% since the start of the year. Pro Medicus is a leading global provider of radiology information systems, Picture Archiving and Communication Systems, and advanced visualization solutions. Unlike older, proprietary solutions from companies like GE and Philips, Visage's open, cloud-native solution is compatible with all imaging hardware and works with major cloud providers, improving radiologist productivity by providing immediate access to images. This flexibility eliminates the need for hardware investment and supports a 'per click' revenue model, ensuring growth. Pro Medicus plans to expand in Europe and Australia and has entered the cardiology imaging market, which offers significant potential due to higher pricing. With limited competition and opportunities in artificial intelligence, Pro Medicus is well-positioned for further growth.
The performance of financial stocks has been impressive. $Suncorp Group Ltd (SUN.AU)$ has risen over 25% since the beginning of the year, while $Westpac Banking Corp (WBC.AU)$ has seen increases of more than 23%. WBC is a popular ASX dividend stock because of its large dividends and major market presence in the banking sector. In its mid-year report, Westpac announced a 4% year-over-year decline in net operating income to $10,590 million for the six months ending 31 March, due to stagnant net interest income, a 23% drop in non-interest income, and an 8% rise in operating expenses. The net interest margin fell to 1.89%, and net profit decreased by 16% to $3,342 million. Despite these declines, Westpac's share price rose strongly, buoyed by a 7.1% increase in the interim dividend to 75 cents per share, a fully franked special dividend of 15 cents per share, and an additional $1 billion for its share buyback program.
The Reserve Bank of Australia (RBA) kept the cash rate steady at 4.35% during its June meeting, but indicated heightened alertness to upside inflation risks. The Board is uncertain about the moderation of inflation and concerned about persistent price pressures. Since the last rate hike in November 2023, a 'high for longer' theme has prevailed. The Board debated whether to hike or maintain the rate, ultimately deciding to leave it unchanged. Governor Bullock highlighted the difficulty of bringing inflation down to the 2-3% target, stating the economy's path is narrowing. While the case for a rate rise isn't increasing, the Board remains vigilant, with upcoming data on June quarter inflation and the labor market being crucial for future decisions. The consensus among economists is that rate hikes are finished and the next move from the RBA will be a cut, but the timing is highly uncertain.
In the first half of 2024, due to the market frenzy triggered by the surge in $Bitcoin (BTC.CC)$ and the approval of crypto-related ETFs, the performance of crypto-related ETFs reflected the booming market sentiment, with crypto-related ETF $Global X 21Shares Bitcoin ETF (EBTC.AU)$ topping the charts.
Amid the tech boom, ETFs targeting AI-related stocks have soared, with $Global X Semiconductor ETF (SEMI.AU)$ leaping 39.10%, $Global X FANG+ ETF (FANG.AU)$ up 29.8%, and $Munro Global Growth Complex ETF (MAET.AU)$ rising 27.67%.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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