The S&P/ASX 200 has finished the financial year falling half a per cent yesterday, taking total gains over the past 12 months to just under three per cent. That is a long way below the ten per cent return for the previous financial year, and the eight per cent in the year before that.

It was a financial year for the materials sector, led by the big miners. BHP and Rio Tinto both rose more than 60 per cent, thanks to surging copper prices, still high iron ore prices and a rotation out of banks and technology and into resources.

The flip side was the health care and technology stocks. The health care index was the worst performing, down 37.4 per cent, led by a 52 per cent drop from CSL and a 60 per cent fall by Cochlear.

In the tech sector, the SaaS companies had a tough year. WiseTech Global was down just shy of 70 per cent and was the worst performing ASX200 stock for the year. Xero was off 60 per cent while TechnologyOne fell 28pc.

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Greed-o-meter

The best and worst performing sectors on the S&P/ASX 200 in FY26:

Source: Market Index

Fear & Greed Q+A today

Many of us heard about RNA technology for the first time when it was used for COVID vaccines. But there are many other uses for the tech, and now efforts are being made to ensure Australian developments are able to make it into production:

 

“Traditionally, Australia has been world class in research, but translation has been at the bottom of our peer group. Entrepreneurs tend to have a really good idea and then they get lured internationally and we lose them. So keeping them here in Australia is vitally important.

 

What RNA Australia is doing is working with those research groups, backed by the New South Wales Government, with a team that's got more than 50 years' experience in translating medicines. We work with entrepreneurs, help spin out companies and navigate what's called the valley of death.

 

The aim is that the research doesn't stay on the bench or disappear overseas. It makes its way through to a world-class manufacturing facility here in Australia.”

News in brief

Two Ernst and Young graduate employees who were on secondment to Commonwealth Bank have been sacked and one has been charged after he allegedly used the bank’s systems to access the personal banking details of Prime Minister Anthony Albanese.

The ACCC is suing Amazon, alleging the streaming and e-commerce giant had unfair contract terms that allowed it to introduce advertising for 850,000 subscribers who had paid for an annual subscription. It is one of the first cases brought under the ACCC’s new unfair contract regime.

The Reserve Bank has warned it may need to lift interest rates to rein in inflation, adding that union expectations around prices are too high.

Today marks the start of the financial year and many people, hoping for a refund, rush to get their tax returns done. However, the Australian Tax Office is suggesting taxpayers slow down, warning that haste leads to mistakes.

Michael, the film based on the life of Michael Jackson, has just surpassed Christopher Nolan’s Oppenheimer to become the highest-grossing biopic ever, so far having made $US977 million globally.

Fear-o-meter

Australian Shareholders' Association Rachel Waterhouse on the 2026 financial year:

“The index is not the same as an individual portfolio. Two investors can both be invested in Australian shares and have very different outcomes depending on their exposure to sectors such as Materials, Health Care, Technology, Financials and Energy.

“Second, dividends matter. In Australia, income can be a significant part of total return, particularly for retirees and self-directed investors. Looking only at share price movements can give an incomplete picture of investment performance.

“Third, diversification remains important. Markets reward different sectors at different times, and it is very difficult to consistently predict which part of the market will lead next.

“Investors do not need to react to every market movement, but they should regularly review whether their portfolio remains aligned with their goals, risk tolerance and time horizon.

“End of financial year is a good time for investors to pause and ask practical questions: am I too exposed to one sector, am I relying too heavily on a few companies, and does my portfolio still match the reasons I invested in the first place?”

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