Citi Group insights: Australian market forecast

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Citi Group insights: Australian market forecast

) shares have risen approximately 27% since the August 2023 lull. However, the company's deep discount to valuation is now diminished. Despite China's recent property easing measures, Citigroup analysts predict no significant support for steel demand, citing ongoing contraction in all property indicators and the return of loss-making steel mills in China.

Finally, the recent bank results season saw significant near-term capital returns. This helped continue the rally in share prices, though the rate cut-led rally is waning. To sustain current share prices into the medium term, a return to sustainable core profit growth is essential.

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