What happened
The S&P/ASX 200 Index rose 0.4 per cent to close at 8,716.6 points, led by strong gains in defensive market sectors. Utilities shares led all sectors with a 3.64 per cent weekly increase, REITs gained 3.58 per cent, healthcare shares rose 3.53 per cent, and consumer staples gained 2.31 per cent. Individual gainers included LGI Ltd, which surged 23.16 per cent following a solar acquisition.
Why it matters here
Essential service providers and property trusts generate steady cash flows during economic downturns because consumer demand for electricity, healthcare, and basic food items remains stable. For local portfolios, rotation into defensive assets offers downside protection when broader market growth momentum cools amid elevated interest rates.
What to watch
Monitor upcoming sector reporting and cash flow announcements across major utilities and REITs to verify whether operational margins sustain recent market outperformance.
Source
fool.com.au