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NZX-50 sector and stock performance 2013-2018

by Raghav Singh, Sharesight

Since investors using Sharesight typically tend to lean towards a ‘buy and hold’ investing philosophy, it’s important to look at returns over longer periods. In this post, we’re examining the returns of stocks in New Zealand’s NZX-50 index and the corresponding returns for each sector and key stocks in each sector of the index in order to look for underlying trends over the last 5 years (2013-2018).

Sharesight performance calculation methodology

Sharesight calculates annualised returns that include dividends - we do this using a dollar weighted return calculation method when there are multiple buy/sell trades within a measurement period. For this exercise we “purchased” a single parcel of each stock on 1 Jan 2013 and used Sharesight’s performance report to calculate the annualised return including dividends (total annualised return) through to 31 December 2018. In this post we’ve used Sharesight’s compounded annual return method to calculate these annualised returns.

NZX-50 performance 2013-2018

NZX-50 performance

Using the Smartshares NZ Top 50 ETF (FNZ) as a proxy to capture the dividend and capital gain performance of the NZX-50 index in Sharesight (read our rationale for benchmarking your portfolio against ETFs), we find an extremely strong performance for the index through to August 2014 before falling away, underpinning the importance of understanding the impact of holding periods in your investment performance.

Over the 5 years from 1 January 2013 to 31 December 2018, NZX:FNZ recorded a 13.82% total annual return, with 6.03% of that return coming from dividends.

Performance of each sector in the NZX-50

Sharesight uses the FactSet Revere Business Industry Classification System to classify companies by industry and sector (when looking at a holding in Sharesight, this information is available in the ‘instrument detail’ section).

Performance of each sector in NZX 50

We used this sector break down to split out the performance by sector within the NZX-50 over the 2013-2018 period. Here’s that performance by sector – simply click on a sector for more info:

NZX-50 performance by sector 2013-2018

NZX-50 performance by sector compounded

  1. Communication: 15.10%

  2. Consumer non-durables: 66.15%

  3. Consumer services: 12%

  4. Energy minerals: 9.33%

  5. Finance: 7.80%

  6. Health services: 15.94%

  7. Health technology: 27.94%

  8. Miscellaneous: -2.07%

  9. Non-energy minerals: -0.87%

  10. Process industries: 9.70%

  11. Producer manufacturing: -13.55%

  12. Retail trade: 7.71%

  13. Technology services: 2.21%

  14. Transportation: 19.45%

  15. Utilities: 14.40%

  • All return figures per annum total return including dividends

1. Communication: 15.10%

NZX communications sector performance

SPK - Spark New Zealand limited: 17.14%

CNU - Chorus limited (NS): 12.87%

2. Consumer non-durables: 66.15%

ATM - The A2 Milk Company limited: 66.15%

3. Consumer services: 12%

RBD - Restaurant Brands New Zealand limited: 24.80%

SKC - SKYCITY Entertainment group Limited: 4.79%

SKT Sky network television limited: -3.29%

4. Energy minerals: 9.33%

ZEL - Z Energy limited: 14.38%

NZR - The New Zealand Refining Company Limited: 3.98%

5. Finance: 7.80%

VHP - Vital Healthcare Property Trust: 12.99%

GMT - Goodman Property Trust: 11.97%

PFI - Property for Industry limited: 11.42%

6. Health services: 15.94%

Health Sector NZX performance

SUM - Summerset Group Holdings limited: 20.22%

RYM - Ryman healthcare limited: 17.04%

ARV - Arvida group limited: 12.27%

7. Health technology: 27.94%

FPH - Fisher & Paykel Healthcare corporation limited: 34.15%

EBO - Ebos group limited: 19.71%

8. Miscellaneous: -2.07%

FSF - Fonterra shareholders fund: -2.07%

9. Non-energy minerals: -0.87%

STU - Steel and Tube Holdings ltd: 0.71%

FBU - Fletcher Building ltd: 2.59%

10. Process industries: 9.70%

Process industries NZX sector performance

SKL - Skellerup Holdings limited: 9.70%

11. Producer manufacturing: -13.55%

MPG - Metro Performance Glass limited: -13.55%

12. Retail trade: 7.71%

KMD - Kathmandu Holding limited: 10.88%

WHS - The Warehouse Group limited: 2.66%

13. Technology services: 2.21%

TME - Trade Me Group limited: 12.68%

OHE - Orion Health Group limited: -33.61%

14. Transportation: 19.45%

Transportation NZX sector performance

AIR - Air New Zealand: 24.97%

AIA - Auckland International Airport limited: 21.90%

POT - Port of Tauranga ltd: 15.30%

15. Utilities: 14.40%

Utilities NZX sector performance

MEL - Meridian energy limited: 23.69%

TPW - Trustpower Limited: 21.82%

GNE - Genesis energy limited: 19.43%

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