A Melbourne-based biopharmaceutical company was the best performer on the Australian Securities Exchange in 2023 as its treatments for debilitating early childhood neurodevelopmental disorders progressed.
The value of Neuren Pharmaceuticals shares more than tripled this year - making it the biggest gainer among the 500 companies in the All Ordinaries.
That came as after its therapy for Rett syndrome won US approval in March and its treatment candidate for Pitt Hopkins, Phelan-McDermid and Angelman syndromes showed promise in three separate clinical trials.
Neuren was also made a member of the ASX200 in September and expects to make up to $13.7 million in fourth-quarter royalties for its Rett syndrome treatment, which is being sold by a US partner.
Nuix Limited was the second-best performer with a 202 per cent gain this year, but the Sydney-based analytic software company's shares are still a quarter of their value from their debut on the bourse three years ago.
Rounding out the top three performers in the All Ords for 2023 was Latin Resources, which rose 185 per cent after new ore discoveries at its Salinas lithium project in Brazil placed it among the largest tier-one undeveloped lithium resources globally.
On the flip side, 5E Advanced Materials was the biggest loser in the All Ordinaries, with its shares plunging to less than one-fifth of their value from the start of the year. The US-based boron and lithium developer has had to recapitalise ahead of first production.
Other companies that did poorly in 2023 include Brainchip, Core Lithium, Appen, Betmakers Technology Group, Bowen Coal and Bigtincan Holdings, with losses of between 77 and 63 per cent over the year, compared with an 8.3 per cent gain for the All Ordinaries.
So where should investors be looking in 2024?
Maroun Younes, the Sydney-based co-portfolio manager of the mid-cap Fidelity Global Future Leaders Fund, told AAP in a recent Zoom interview that he's still a bit cautious for the global outlook for 2024.
"My personal view is that we're not completely out of the woodworks yet. We haven't seen a recession yet, but that's not to say that one can't take place in 2024," Mr Younes said.
Markets are pricing in almost a zero per cent chance of a recession, but Mr Younes placed its odds at "a bit of coin toss, as far as gut feel ... I'm just not as optimistic as the broader market."
He said he's positioning his portfolio with some cyclical and discretionary companies but also resilient, "mission critical" companies such as health care and consumer staples that would still do well during an economic downturn.
Mr Younes said he's a fan of insurance companies, which tend to do well in an environment of higher rates, as they stockpile money paid in premiums in short-term investments ahead of insurance claims.
He named US companies Arthur J Gallagher and Brown & Brown as two specific holdings, as well as Arista Networks, a US cloud networking company.
His fund's only ASX-listed company is James Hardie, the fibre cement siding and backerboard manufacturer. "And that's primarily because of the US housing exposure," Mr Younes said.
Meanwhile, Grady Wulff, a market analyst for Bell Direct, told AAP recently that she is more optimistic for the global outlook and doesn't foresee a recession in the cards for 2024, but she's also a fan of the health care sector.
"This year obviously we've seen a correction in the prices and valuations of health care companies, but a lot have different catalysts on the horizon next year," Ms Wulff said, naming Telix Pharmaceuticals and Clinuvel Pharmaceuticals as two profitable companies that could do well in 2024.
"In terms of commodities, gold from all angles is definitely the commodity of next year," she said.
There's a lot more certainty around interest rates and the US dollar is expected to be weaker, all of which should benefit the yellow metal.
The smaller miners could be M&A targets, Ms Wulff added, taking note of Gina Rinehart's recent interest in the space.
In the consumer discretionary space, she's a fan of furniture e-retailer Temple & Webster, which has been using AI to extend its services, and companies that target the youth generation, such as Hype and Platypus shoe chain owner Accent Group.
"They're really strong companies, and they're obviously remaining resilient, because young people don't have cost of living pressures," Ms Wulff said
