Market Update - December 2023

21 December 2023


19 December 2023


Your Market Update - December Summary

Chart of the Month - What happens after a market crisis? 

Major financial and political crises are common.  In the last 20 years there have been 9 major events (and many smaller ones) which have impacted markets.  The chart shows the initial impact of these events and how the market has performed over the following 150 trading days following the event.  Whilst this chart illustrates the US Dow Jones Industrial Index the outcome is very similar in the Australian market.

In most cases, the market tends to rebound following a major economic or political crisis.  Whilst we do not recommend market timing, the chart highlights the point that major crises, in general, have a short-term impact on markets.


Market Developments during November 2023


Australian Equities


The ASX 200 was up 5.0% for the month of November, halting the three-month slide in returns. Eight of 11 sectors finished positively; the three strongest being Health Care (+11.7%), Property (+11.0%), and Information Technology (I.T.) (+7.4%), while Energy (-7.4%) and Utilities (-6.0%) were laggards. The month began with a rate hike by the RBA and fears of further increases; however, markets were supported by indications of inflation slowing at a decent pace, finishing the month with the strongest return for the index since January.


The Health Care sector was driven by a strong month for three major constituents; CSL, ResMed and Cochlear.  Despite the RBA’s decision early in the month, the rate-sensitive Property and I.T. sectors were the beneficiaries of the ease in inflation as investors piled back into those sectors.


Energy stocks were hit by the significant drop in oil prices over the month, partly due to the Chinese economy continuing its struggles. Meanwhile, Utilities were impacted, predominantly, by one stock; Origin Energy, as the unpredictable takeover bid of the company saw its shares fall almost 10%. In all, the ASX 200 finished November by clawing back some of the losses seen in the previous three months.


Global Equities 


Global equity markets gained in November, rebounding from October lows. Developed markets outperformed emerging market counterparts returning 4.4% (MSCI World Ex-Australia Index (AUD)) versus a 3.1% return according to the MSCI Emerging Markets Index (AUD).

US markets gained. The S&P500 finished up 9.1% and the Nasdaq up 10.8% (in local currency terms) as the Federal Reserve shows signs of ending rate hikes.

European markets also gained on easing inflation data, the DAX gaining 9.5% (in local currency terms) over the month.


Chinese markets performed poorly, as China’s economy continues to contract, and artificially lowered iron ore prices fail to bolster the economy. The Hang Seng Index and CSI 300 Index lost -0.2% and -2.1% for the month (in local currency terms), as China’s largest property giant EverGrande continues to face collapse, dragging the Real estate Sector lower in China.


Fixed Interest


After four months of rate hike respite, the RBA lifted the official cash rate by 25 basis points to 4.35% following latest inflation data and economic indicators. This marks the highest cash rate level since 2011, and the RBA will continue to monitor the balance between the strong labour market and slowing household sector.

Over the course of the month, bond yields fell steadily with Australian 2- and 10- Year Bond yields falling by 35bps and 52bps respectively. The Australian bond market, as measured by the Bloomberg AusBond Composite 0+ Yr Index, rose 2.97%.

November brought a large recovery in global bond markets as well. US inflation figures came in cooler than expected, resulting in a rise in bond prices and a drop in bond yields. US 2- and 10- Year Treasury yields fell by 39bps and 60bps respectively, despite Moody’s downgrade of US credit rating from ‘stable’ to ‘negative’.

The U.K. saw a larger than expected fall in inflation as well as an increase to the Bank Rate by 75bps by the BoE, resulting in U.K 10 Year Gilt yields falling 34bps – a 50 basis point drop from its October high.


REIT’s (listed property securities)

The S&P/ASX 200 A-REIT Accumulation index advanced during November, with the index finishing the month 11.0% higher. Global real estate equities (represented by the FTSE EPRA/NAREIT Developed Ex Australia Index (AUD Hedged)) also finished strongly, advancing 9.0% for the month. Australian infrastructure also performed well during November, with the S&P/ASX Infrastructure Index TR advancing 1.6% for the month and up 6.6% YTD.

The Australian residential property market experienced an increase by +0.6% Month on Month (as represented by CoreLogic’s five capital city aggregate). Perth was the biggest riser (+1.9%), followed by Brisbane (+1.3%) and Adelaide (+1.2%). In contrast, Melbourne (-0.1%) was the only city to deliver negative returns in November.


The Boyce Insider December 2023

15 December 2023


The Boyce Insider - December 2023 


End of Year note

Carmen Caldwell

Managing Director 


As we approach the end of another remarkable year, I wanted to take a moment to express my sincere gratitude to you, our Boyce community.

Your partnership with us has been instrumental in driving our shared achievements. Your support and feedback have been invaluable, shaping the way we approach our work and driving continuous improvement. It is truly a pleasure to work with clients and partners who share our values of innovation, integrity, and the relentless pursuit of excellence.

Looking ahead, I am excited about the possibilities that the upcoming year holds. Our team is committed to going above and beyond to not only meet but exceed your expectations. We anticipate delving into new projects that will showcase the depth of our expertise and the innovative solutions we can bring to the table.

May this festive season bring joy, prosperity, and moments of well-deserved rest. On behalf of the entire Boyce team, I wish you and your loved ones a joyous holiday season and a prosperous New Year.

Embracing Australia’s AI Month in Small Business     

Caroline Wilcher

Executive Business Unit Leader - Boyce Business Advisory, Superannuation and Assurance Services


Artificial intelligence (AI) is a rapidly growing field that has many applications and benefits for business in Australia.

Scheduled from November 15th to December 15th, 2023, AI Month is dedicated to spotlighting Australia’s AI proficiency and championing the responsible creation and adoption of AI to bolster our domestic AI sector and gain a competitive edge in the global arena.

 The National AI Centre’s (NAIC) “Australia’s AI ecosystem momentum” reports there is a growing appetite for AI in Australian business, with business using AI to grow revenue and improve efficiency.  Some of their key findings in relation to AI-related technologies specifically in the commercial sector include:

      The need for the partner and support ecosystem in Australia to mature.
     Businesses need to recognise the importance of AI solutions in driving revenue growth, process improvement, customer experience, employee experience and digital maturity.
     Connecting with the right network of providers and partners is critical to deliver successful outcomes.
     Investing in data management skills is important but so is investment in AI technology for data management.
     The importance of Responsible AI to ensure accountability.

The benefits of AI-related technologies are clear, with an average growth of $361,315 reported for each AI-enabled solution, however the successful implementation of these solutions typically involves the work of at least 4 AI technology and service providers.

A recent study by Xero revealed that half of small business owners now believe the rapid development and adoption of AI will have a positive impact on their business. However, this belief is tempered by the 80% of business owners who continue to hold ethical concerns regarding development outpacing regulation, data privacy and worker displacement. NAIC advocates for the adoption of a “Responsible AI” approach. Responsible AI is founded on empathy, fairness, transparency, and accountability. Business can also access the Responsible AI Network a collaboration of expertise and advice to navigate regulation, technology, and ethics in the AI ecosystem.


A Boyce Hero, Dimity Fish 


For over two decades, Boyce has been more than just a workplace for Dimity Fish. In this interview, Dimity shares insights into the reasons behind her enduring commitment to Boyce, the evolution of her role, and the rewarding experiences that have defined her journey.

Adapting to Life Changes

One of the key factors that has kept Dimity at Boyce for so many years, is the company's unwavering support during her various life transitions. From navigating university and the CA program to starting a family, Boyce has been a steadfast companion, accommodating changes in roles and work-life balance. The company's acknowledgment of the importance of work-life balance has played a pivotal role in Dimity's prolonged tenure.

From Cadet to Advisor

Reflecting on her professional journey, Dimity started as a cadet in business services back in 1998, specializing in financials and tax. Over the years, she transitioned to audit, eventually becoming an audit manager for approximately seven years. Today, Dimity holds the position of a senior manager in the Boyce Business Advisory Team, showcasing Boyce’s commitment to nurturing talent and facilitating career growth.

Culture of Care:

When asked about the most rewarding aspect of working at Boyce, Dimity spoke of the relationships forged with both clients and colleagues –

“The Boyce culture has a large focus on care for clients and care for staff.  Care for people, either professionally or personally is important to me, so its nice to have these values aligned.”

Memorable Moments:

She recalls her experience of flying from Moree to Sydney with Cooma colleagues in a small plane, an event from the early years that left a lasting impression, “it was the smallest plane I have ever been on – I think about a 20 seater – I have never listened to the safety announcement so thoroughly.”

Additionally, the introduction and implementation of the Goods and Services Tax (GST) in 2000 marked a significant period, highlighting the resilience and adaptability of both Boyce and its clients in the face of change.


As Dimity continues her journey at Boyce after 25 years, these memories and experiences serve as milestones, illustrating not just the professional growth but the personal connections and shared endeavours that make Boyce a workplace like no other.


Economic update from your wealth management team 

Lindsay Garnock

Executive Business Unit Leader - Boyce Wealth Management


Interest rates and inflation continue to dominate the headlines and are the main drivers of share prices both locally and overseas.  The market expected, and received, another rate hike at the RBA’s November Cup Day meeting with the official cash rate moving up by 25 bps to 4.35%.  The Australian equity market continues to languish and is up only marginally year to date. 


Australian Equities

October saw the ASX 200 finish down 3.8%, marking the third consecutive month of negative returns. Several factors have contributed to the drag on returns, including stubborn inflation, rising bond yields, tentative company earnings outlooks and ongoing geo-political tension. In all, the ASX 200 retreated in October, indicative of the significant headwinds that the local market continues to face.

Global Equities

Global equities had another negative month across the board. Investor concerns continue around interest rates remaining higher for longer. US equities declined following the Federal Reserve’s stance of a “restrictive” policy until inflation seems to ease. This saw the S&P500 Index decline by -2.1% (in local currency terms). The same concerns were raised in the UK, also holding interest rates at 15-year historical highs with the FTSE 100 Index returning a loss of -3.7% (in local currency terms) for the month.


Grand Celebrations: Boyce Marks 50 Years


Client Appreciation: A special tribute to the clients who have been an integral part of Boyce's journey, recognizing their trust and collaboration.

Employee Recognition: Honouring the dedicated individuals whose hard work, passion, and talent have played a crucial role in shaping Boyce into the industry leader it is today.


2023 marked 50 years of business for Boyce. This milestone is a testament to Boyce's enduring legacy, unwavering commitment, and the deep-rooted relationships it has fostered over time. From humble beginnings to becoming a powerhouse in the industry, Boyce’s history is a tale of innovation, resilience and excellence.

To commemorate this achievement, a black-tie dinner was held at Randwick Racecourse in November. This was an opportunity for senior team members and clients to come together to show our appreciation to all of those who have contributed to the journey.

The anniversary celebrations then continued with the entire Boyce team travelling to Sydney. Firstly, with lawn bowls (and a healthy dose of competition) and then a lunchtime cruise around Sydney Harbour.

Check out our social media channels for more details on these events.

We are now looking forward to continuing the Boyce journey, and what the future has to offer.  


Holiday Office Closure

All Boyce offices will be closed from Friday 22nd of December 2023 and will reopen Monday 8th of January 2024.

Our team wishes you a safe and happy holiday season.