The S&P/ASX 200 index gained 6.0 per cent in October, according to the latest data from S&P Dow Jones Indices, rebounding from the stock market slump suffered in September.
The financials sector was dubbed the “star performer” of the month with a gain of 12.2 per cent, with gains also seen across the energy (9.47 per cent), real estate (9.32 per cent), consumer discretionary (8.91 per cent), utilities (7.22 per cent) and industrials (6.54 per cent) sectors.
Information technology (5.39 per cent), communication services (4.95 per cent) and health care (0.56 per cent) also posted a positive result, while consumer staples (-0.19 per cent) and materials (-0.09 per cent) were the only losers for the month.
“Large caps lagged their mid and small-cap brethren as the S&P/ASX 50 added 5.7 per cent versus 7.1 per cent for the S&P/ASX MidCap 50 and 6.5 per cent for the S&P/ASX Small Ordinaries” said S&P Dow Jones Indices director for index investment strategy, Benedek Vörös.
Gains were also seen for the S&P/ASX 20 (5.92 per cent), S&P/ASX 100 (5.90 per cent), and S&P/ASX 300 (5.96 per cent), while the S&P/ASX Emerging Companies index lagged with an increase of 2.93 per cent.
Year to date, all the major indices remain in the red, with the S&P/ASX Emerging Companies (-22.23 per cent) and the S&P/ASX Small Ordinaries (-19.20 per cent) ranking as the worst performers. Meanwhile, the S&P/ASX 200 has fallen 4.12 per cent so far this year.
As for the sectors, the surge for energy has continued with a substantial gain of 51.30 per cent year to date. Utilities (8.89 per cent) and financials (2.67 per cent) are the only other sectors in the black for 2022.
Information technology (-31.85 per cent), real estate (21.32 per cent), consumer discretionary (16.78 per cent) and communication services (-10 per cent) have seen the biggest losses.
On the outlook for global markets more broadly, Bruce Apted from State Street Global Advisors recently noted that the bulk of economic indicators are now pointing towards continued economic contraction as the risk to earnings continues to build.
“Adding to the valuation concerns are higher long-term interest rates which imply lower equity multiples, and the more uncertain economic environment which increases investor risk aversion further suggesting lower valuation multiples can be justified in the current environment,” he said in an update on Tuesday.
“With tighter monetary policy yet to fully play out, global earnings risk grows.”
Also on Tuesday, the Reserve Bank continued its tightening cycle, pushing rates up by a further 25 basis points to 2.85 per cent.
