10 fascinating facts about the financial year that was

The financial year has drawn to a close, and what a rollercoaster ride it has been. The Australian sharemarket fell 11.1%, despite the best bond returns in 15 years and strong annual economic growth, currently at 4.3%.

Globally, the European debt crisis dominated, while the US recovery slowed and China reined in inflation by slowing its economy.

CommSec Chief Economist Craig James said it has been a “mixed year”.

Here’s 10 fascinating facts from his round up of the year that was 2011-12:

1. Sharemarket down, bonds up

It was a mixed year, with the Australian sharemarket falling by 11.1% with total returns down 7.0%.

But bond returns rose 14.6% – the best gains in 15 years. The Dow Jones achieved a modest rise of 3.8%.

2. “Chindia” leads the world

The world economy grew at a rate of 3.5%, with China and India between them contributing 1.09%. The US contributed 0.46%, with Australia contributing 0.07%.

But Chinese industrial production has steadied, falling to just below 10% annual growth, after peaking just above the 15-year average of 14% late in 2011.

3. Australian economy surges, inflation falls

Australian economic growth has surged ahead, rising from a low of 1.2% annual growth in early 2011 to 4.3% in June 2012.

Underlying inflation fell to the lowest rate in 12 years, with the Consumer Price Index at just over 2% annual growth.

4. Venezuela booms, while Cyprus flounders

The top global sharemarket was Venezuela, which grew 213.2%, while the worst performer was Cyprus, which declined by 80.2%. The weakest currencies against the US dollar were the Malawi kwacha, which fell 78.4%, and the Syria pound, which fell 34.9%.

The strongest growing currencies were the Papua New Guinea kina, which grew 9.6%, and the Solomon Islands dollar, which grew 6.4%.

5. Telecommunications up, consumer goods down

The best performing industry was telecommunications, growing by 27.3%, while the worst performer was consumer durables and apparel, which fell 55%.

Retail fell 32.9%, while materials fell 29.7% and energy fell 21.1%.

6. Best and worst Australian stocks

The best performing Australian stocks were Buru Energy, which grew by 379.39% and Senex Energy, which grew by 105.13%.

The worst performers were Aquarius Platinum, which fell 85.11%, Mirabela Nickel, which fell 84.45%, and Billabong, which fell 77.52%.

7. Best and worst top 20 stocks

The best performer among the biggest 20 stocks was Telstra, with growth of 27.7%, while the worst performers were Newcrest Mining, which lost 40%, Rio Tinto, which lost 31.9%, and BHP Billiton, which lost 28.2%.

8. Interest rates fall

Short-term interest rates have fallen steadily since July 2011, with the Reserve Bank cutting the cash rate from 4.75% to 3.5%.

9. Oil and base metals see commodity prices fall

Commodity prices fell 16.3% over the year, with oil falling 11%, gold rising 6.7%, and base metals falling 21.7%.

10. And the future?

The CommSec outlook for 2012-13 is generally positive.

“If Europe stabilises as hoped and Chinese economic policy is more stimulatory, then resource stocks will be back in favour and the Aussie dollar will creep higher,” James says.

“CommSec tips the ASX 200 to be at 4,650 in June 2013 with the Aussie dollar expected to be around US104 cents,” he says.