• Company earnings have on average fallen by 24%, with no sector delivering positive earnings growth. However It wasn’t as bad as expected.
  • Results were mixed; there were as many positives as there were negatives highlighting a great deal of disparity in the market.
  • Strength was seen in retailers such as JB-HI, Harvey Norman, Bunnings. While more traditional businesses such as the Banks, Airlines, Tourism and Hospitality sectors under pressure.
  • Dividends were reduced, or cut to zero by half of the market, with the other half increasing dividends or keeping them flat.
  • Overall, some companies are resilient and thriving, while others that have been hit hard have benefited from government stimulus. There are some that are not strong enough to thrive.
  • As always, balance sheet strength has been the key, and those that are able to adapt to the structural changes / disruption currently playing out will be the winners in the long run.