Overview
Over the quarter ending 30 September 2014 the ASX 200
Accumulation index fell by -0.60%.
ASZ 200 Accumulation Index
Outlook
Overall the August corporate reporting season was broadly
positive, with few disappointments. The ASX 200 delivered earnings
growth of around 10% (6% industrials, 30% resources). Analysts on
average expect earnings growth to accelerate in FY15, with
industrials expected to rise by 8%, resources by 17% and property
trusts by 5%. Assuming these estimates are delivered, the ASX 200
Price to Earnings multiple for FY15 is currently just under the
longer term average, implying that the market is neither cheap nor
expensive.
Nevertheless, in the short term we expect further volatility
given the conflicting economic forces at play. On the one hand, the
economy retains sufficient underlying momentum for earnings to
continue to improve across sectors exposed to consumer spending,
housing, and services. On the other hand,
