These were the best (and worst) performing ASX 200 sectors of FY22

Financial year 2022 (FY22) was a rough one for the S&P/ASX 200 Index (ASX: XJO), but not all the index’s sectors suffered.

The ASX 200 slumped around 10% last financial year. It was weighed down amid rising inflation and three consecutive interest rate hikes.

But FY22 spelled good news for one particular sector. It gained around 25% last financial year.

Keep reading to find out which ASX 200 sector outperformed all others, and which came in as the market’s worst performer, in FY22.

Best and worst-performing ASX 200 sectors of FY22

The best

The S&P/ASX 200 Utilities Index (ASX: XUJ) was the market’s best performing sector of FY22, gaining around 25%. The sector is made up of just three constituents. Here’s how their shares performed in FY22:

• APA Group (ASX: APA) gained 27%
• AGL Energy Limited (ASX: AGL) gained 0.6%
• Origin Energy Ltd (ASX: ORG) gained 27%

Interestingly, the two top-performing ASX 200 utility stocks were also those pushing to make major strides in renewable energy.

APA continued preparing for the energy transition in FY22 while Origin Energy announced it’s ditching coal seven years earlier than previously planned.

Meanwhile, AGL – Australia’s biggest emitter – faced heat to accelerate its transition to renewables.

The worst

But it wasn’t all sunshine and renewables on the ASX last financial year.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) plummeted around 40% after the market took a turn in early 2022.

Inflation and interest rates were likely partly to blame for its downfall. Many ASX tech stocks’ valuations are based on future earnings, and rising inflation and rates makes those earnings less attractive.

On that note, shares in ASX tech giant Block Inc (ASX: SQ2) plunged around 49% last financial year, while those of EML Payments Ltd (ASX: EML) and Megaport Ltd (ASX: MP1) plummeted 64% and 70% respectively.

The post These were the best (and worst) performing ASX 200 sectors of FY22 appeared first on The Motley Fool Australia.

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More reading

• Own ASX 200 energy shares? Retailers could hit back on AEMO fees
• What were some of the key lessons for ASX investors in FY22?
• ASX 200 midday update: Zip scraps Sezzle merger, Lake Resources’ short seller attack
• ‘Gems in the chaos’: The outlook for ASX 200 shares in FY23
• The ASX sector set to pay out ‘massive record dividends’: fund manager

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., EML Payments, and MEGAPORT FPO. The Motley Fool Australia has positions in and has recommended APA Group, Block, Inc., and EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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