The S&P/ASX200 increased by 7.8% for the 2023 year to finish at 7,591. A benign looking return number which belies the previous peak close of 7,558 reached on 29 December 2022, and the trough close of 6,751 reached on 30 October 2023 – here’s hoping investors avoided the whiplash!
Given companies were faced with supply chain issues, interest rate rises and consumers impacted by cost-of-living pressures the market still managed to gain 7.8% over the year. Last year’s performance highlights the importance of diversification in a portfolio. While no sector is guaranteed to outperform in any given year, spreading your investments across different sectors can help to reduce your risk and maximise your returns over the long term.
It is also important to remember that past performance is not necessarily indicative of future results. The companies that performed well in the past year may not do as well in the future, and vice versa. That’s why it’s important to regularly review your portfolio and make sure that your investments are still aligned with your financial goals.
Top 5
The top 5 performing share prices were mostly Materials companies.
| ASX Code |
Company Name |
GICS Sector |
Change over 2023 |
| NEU |
Neuren Pharmaceuticals Limited |
Health Care |
214.1% |
| EMR |
Emerald Resources NL |
Materials |
152.9% |
| JHX |
James Hardie Industries Plc |
Materials |
114.0% |
| BOE |
Boss Energy Ltd |
Energy |
89.2% |
| BLD |
Boral Limited |
Materials |
86.5% |
Bottom 5
The bottom 5 performing share prices were also mostly Materials companies.
| ASX Code |
Company Name |
GICS Sector |
Change over 2023 |
| CXO |
Core Lithium Ltd |
Materials |
-75.5% |
| CHN |
Chalice Mining Limited |
Materials |
-73.0% |
| SGR |
The Star Entertainment Group Limited |
Consumer Discretionary |
-70.6% |
| SYA |
Sayona Mining Limited |
Materials |
-63.2% |
| HLS |
Healius Limited |
Health Care |
-46.6% |
How the results compare to the end of 2022
Reversion to the mean is a common phenomenon for share price performance, with good years following bad and vice versa. Some companies manage to put two good years (or bad years) together. This year has examples of both:
- James Hardie up 114% compared to a 52% fall for 2022.
- Neuren was up 110% for 2022, finishing the 2023 year up 214% with continued progress in its phase 2 trials.
- Core Lithium was up 72.9% and Sayona up 46% in 2022, compared to being in the bottom 5 performers for 2023.
- The Star Entertainment Group was down 52% and Chalice Mining was down 34% in 2022, while continuing the trend to be in the bottom 5 performers for 2023.
Methodology
We calculated the price changes over 2023 by comparing the opening and closing prices of the company constituents of the S&P/ASX200.
