Australian discretionary stocks set to log best trading year in three

JB Hi-Fi

23/12/2024 23:34

** Australian discretionary sub-index  .AXDJ  set to
outperform the consumer staples sector  .AXSJ  in 2024 with a
rise of 21.2%, its best year since 2021, despite headwinds from
high inflation and interest rates
    ** Shares of consumer electronics retailer JB Hi-Fi
 JBH.AX , part of  .AXDJ  index, touched record highs this year,
rising over 81% so far 
    ** This was driven by "a combination of the younger
demographic target and the AI revolution boosting computer and
tech sales,"  said Grady Wulff, market analyst at online share
trade platform Bell Direct
    ** Retail sector could see an increase in earnings growth in
the latter half of the year when interest rate cuts enable
greater discretionary spend, Wulff added
    
    ** Essential consumer stocks are projected to fall 4.5%,
dipping for third consecutive year
    ** Weighing on the sub-index, Woolworths  WOW.AX  is on
track to record a nearly 18% yearly loss, its worst performance
in nine years
    ** This year, Australia's largest grocer saw the exit of its
long-term chief amid regulatory inquiries on its discounts,
concerns about high grocery costs and worker strikes
    ** Smaller rival Coles  COL.AX , also under scrutiny,
however, will log a 16.6% gain in 2024, its first since 2020

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Australian retailers    https://tmsnrt.rs/41Mr7VZ
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 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))