Australia’s top listed companies continued to outperform their developed economy peers in creating value for shareholders, according to a new report.
Australia’s top 100 ASX-listed companies generated total shareholder returns (TSR) of 6 per cent in the five years to the end of 2008, equalling Canada and trumping Europe, the US and Japan, research by Boston Consulting Group shows.
Healthcare was the top performing industry in the period, with an average TSR of 32 per cent.
“This comes as no surprise, given the ‘recession proof’ nature of the healthcare industry,” the report said.
Resources came in second place with a TSR of 17 per cent over the five years after commodity prices collapsed in 2008.
Retail companies ranked third in TSR for the five-year period, indicating the sector has held up well in the downturn so far, the report said.
Uranium producer and explorer Paladin Energy was the top value creator with TSR of 136 per cent, followed by Fortescue Metals Group with 102 per cent, Arrow Energy with 77 per cent, CSL with 48 per cent and Oil Search with 44 per cent.
“The top quartile performers achieved an average TSR of 25 per cent over the five years to the end of 2008,” the report said.
Australian and Canadian stocks’ TSR were surpassed by those of emerging economies, with China delivering 13 per cent and India 10 per cent.
