Australian Value: October 2012

The Reserve Bank of Australia cut rates during the month by 25 basis points, down to 3.25%. These increasingly accommodative financial conditions and M&A activity helped the Australian equity market to rally and finish up 2.9%, as measured by the S&P/ASX 300 Accumulation Index. The Australian dollar remained unchanged at US$1.04.

Sector performance was positive for the month, though only telecom, industrials and financials outperformed the market. Technology, energy and utilities lagged most among the underperforming sectors.