ASX winners and losers and what to watch out for in 2023

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“Demand for coal usually peaks in January, so some of these shareholder returns could grow into the new year as the energy crisis continues,” said Jessica Amir, a strategist for Saxo Capital Markets based in Sydney. But coal prices may “lose heat before the mid-year, as Europe and US head into summer and thus demand for coal will cool.”

Lithium rally

Core Lithium (+54 per cent), Sayona Mining (+28.5 per cent), Mineral Resources (+30.8 per cent):

Lithium miners also posted stellar gains, with Core Lithium leading the pack.

“2022 saw lithium stocks reach new highs as a higher-for-longer outlook took hold,” said Saul Kavonic, an energy analyst at Credit Suisse. 2023 could prove a pivotal year that tests the thesis “as more supply comes to market and the demand trajectory risks wobbling amid global economic slowdown,” he added.

Iron ore champions

BHP Group (+8 per cent), Rio Tinto (+17 per cent):

The country’s behemoth iron ore miners ended the year on a high as China’s abrupt COVID Zero reversal and a steady stream of supportive policies raised the outlook for demand.

But a bold push by China — the world’s biggest iron ore buyer — to centralise a large chunk of its buying under a new single state-owned company may shake pricing dynamics and affect Aussie suppliers.

Tech, property losers

Novonix (-86 per cent), Megaport (-67 per cent)

The two worst-performing stocks on the national benchmark came from the tech sector, in line with a global trend that saw the rate-sensitive industry suffer. Battery materials supplier Novonix came at the bottom as operating losses mounted and investors piled on bearish bets.

Cloud services provider Megaport was the second worst. The sector’s gauge slumped 34 per cent for the year.

Centuria Capital Group (-49 per cent)

Centuria posted the steepest fall among property names, as the sector lagged with higher borrowing costs making home purchases costlier and raising the likelihood of defaults.

Australia’s housing-market downturn is showing little signs of a let-up with Bloomberg Economics expecting a trough only in mid-2023.

Bloomberg