JPM-AUSTRALIA FIRST TOMARKET Top Stories-20251129

Health Check: Domestic Conversion, Foreign Aversion

An unhealthy divergence – The Australian Healthcare sector has deeply underperformed its DM counterpart in the YTD. Thedivergence has been particularly sharp since August, with CSL’s travails being a major drag. Over the past three months,Healthcare in the US is the top performing GICs sector (+19.5%), while in Australia it’s languishing near the bottom of the tableat 9 th , down 4.8%. Domestic performance, however, is deeply divergent, with the likes of ANN and RHC up by over 11%, whileRMD, PME and CSL are all down by 6% or more. Interestingly, domestic ownership in the sector is at multi-year highs. Thismarks a stark juxtaposition to the sector’s poor performance, suggesting a dearth of foreign buyers.