Yesterday saw weakness in Wisetech (WTC) drag the local tech sector down ~3%, but it still remains the standout performer of 2024, surging 39% compared to the materials sector, which has fallen 9.4%. Gains have been relatively broad-based, with only Megaport (MP1) and Data#3 Ltd (DTL) & Audinate (AD8) down year-to-date. We may not have the glamourous big tech names of the US, such as the Magnificent Seven, but it may surprise many to know the NASDAQ is only up 21% in 2024, i.e. ASX tech is outperforming the US.
- We are bullish towards the local tech sector, but prudent stock selection will remain pivotal to portfolio returns.
MM believes the coming year 2025 will deliver some performance reversion
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ASX200 Sector Performance in 2024 – Source Bloomberg
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ASX200 Sector Performance in 2024 – Source Bloomberg
