The ebb and flow in the Australian financial scenario amid the COVID-19 pandemic has fuelled investors’ interest in low-risk investments, often associated with large corporations having a solid financial foothold. Such large-cap securities or blue-chip stocks, have dependable earnings, thereby providing stability in critical times.
Although the progress of vaccination programs launched in the country in February 2021, has witnessed a V-shaped recovery in the Australian market backed by fiscal policy measures and record-low interest rates. Yet the side-effects from the vaccine reported in many European countries could affect Australia’s battle against coronavirus.
Nevertheless, the Australian economy rose by 3.1% in the December 2020 Quarter, surpassing the underlying expectations. As per the ABS, the country’s unemployment rate decreased to 6.4 percent in the subsequent month.
Since the rise in consumer activity and the upbeat momentum in the property market have been the torchbearer for the reboot process, it is vital to spotlight two blue-chip stocks hailing from the retail and property sectors, which are on the investors’ radar.
First comes is a diversified retail company Woolworths Group, which generates revenue through the sale of general merchandise, supermarket foods, and liquor. Also, manages hotels.