Listen to Dianne Colledge on Money News with Clinton Maynard
Dianne Colledge, private client adviser at Morgans, joined Clinton Maynard on Money News on Wednesday 7 October 2026. She discussed why October stock market volatility gives the month its reputation as the most dangerous for shares, the property trusts that lifted the ASX 49 points, CSL's new biotech partnership, and whether gold can bounce back from a two-month low. Listen to the full episode below.
Key takeaways
- October stock market volatility has identifiable causes. US third-quarter reporting results, a number of stocks going ex-dividend and a lull in local news flow can all add pressure to the ASX.
- The ASX takes its lead from offshore. When results from US mega-caps create volatility on Wall Street, the Australian market can suffer the same level of volatility.
- Property trusts led a 49-point gain on 7 October 2026. Vicinity Centres, Arena REIT and Stockland rose after falling on ex-dividend dates and the increase in interest rates.
- Morgans has a buy rating on CSL. A new partnership with a Swiss biotech pushed the shares higher, and a rise of about 85% in six months raises the question of when to take profits.
- Morgans remains positive on gold over the long term. With gold at a two-month low and gold stocks down, Dianne sees good buying for investors who can ride through volatility.
History says October is the stock market's most dangerous month. On Money News, Clinton Maynard put that idea to Morgans private client adviser Dianne Colledge and asked how her clients approach it.
Dianne's answer is that October stock market volatility has clear, explainable drivers, from the US reporting season to ex-dividend dates.
In this article, Morgans private client adviser Dianne Colledge explains what makes October a bumpy month for the ASX. She also shares her views on the property trust rebound, CSL's new biotech partnership, and why Morgans remains positive on gold despite its recent fall.
Why is October a volatile month for the stock market?
October is volatile because several pressures land on the market at the same time. The first, according to Dianne, is that October is the month US third-quarter reporting results come into the market.
"The Australian market is very much driven by what happens offshore," Dianne said. If results from the US mega-caps create a lot of volatility on Wall Street, the ASX can suffer that same level of volatility.
The four factors behind October stock market volatility
A quiet month for company news
Dianne also pointed to a "void for news flow" in October. The ASX is between reporting seasons, so there is little fresh information to push stock prices in one direction or another.
What moved the ASX on 7 October 2026?
The ASX finished 49 points higher on Wednesday 7 October 2026, led by a rebound in real estate investment trusts (REITs). Smaller technology stocks moved the other way.
Why property trusts bounced back
REITs had fallen before the rebound for two reasons, Dianne explained. They had gone ex-dividend, and interest rates had increased.
Small-cap tech under pressure
The smaller end of the technology sector had a tougher day. Weebit Nano fell 12% and Megaport dropped 6%, with a few other tech names also in negative territory.
What does the Alentis deal mean for CSL shares?
The market welcomed it. CSL announced an exclusive agreement with Switzerland-based biotech Alentis Therapeutics to co-develop and promote a potential first-in-class treatment targeting inflammation and fibrosis.
The Morgans view on CSL
"The market really liked that," Dianne said, noting the announcement pushed the stock up nicely. Morgans' analyst has a buy rating on CSL, with a price target above the stock's recent close of around $176. That suggests there is still a bit of upside in the stock.
Should you take profits on a stock that has run hard?
CSL shares have risen by about 85% from where they were six months ago. As was noted on air, buying at around $95 at that time was a leap of faith.
The discussion then turned to how investors decide which shares to sell when they need cash for a purchase, such as a second-hand car. One approach discussed was to sell a holding that had already made a decent profit, based on a gut feel that it was not going back to $300 any time soon. That is worth considering when offloading stocks that have made a strong return from where they were only six months ago.
Will the gold price recover from its two-month low?
Morgans remains positive on gold over the long term, despite the price sitting at a two-month low. "We're quite comfortable at seeing a higher gold price from here," Dianne said.
What drives the gold price?
Dianne explained that the gold price is driven by a number of different aspects of global macro conditions, including:
- The US dollar
- US debt levels
- A flight to safety, if issues around war and conflict in the Middle East increase
Are gold stocks a buying opportunity?
Gold stocks have dropped off quite a bit, Dianne said, which makes for good buying if you are looking to ride through the volatility and take a longer-term view. Morgans is hoping to see gold recover from where it is now.
The bottom line on October stock market volatility
October stock market volatility is rarely random. According to Dianne, US third-quarter reporting results, ex-dividend dates, the memory of the 1987 crash and a lull in local news flow all play a part.
On 7 October 2026, property trusts led the ASX 49 points higher, CSL rose on its new biotech partnership and gold sat at a two-month low. Morgans has a buy rating on CSL and remains positive on gold over the long term.
If you would like to talk through how these market moves affect your portfolio, get in touch with Dianne Colledge.
Frequently asked questions
What causes October stock market volatility?
According to Dianne Colledge, Octoberbrings US third-quarter reporting results into the market, and volatility inthe US flows through to the ASX. A number of shares also go ex-dividend, andwith no local reporting season there is little news flow to drive prices.
Why is October called the stock market's most dangerousmonth?
History points to October as a risky monthfor shares, and the 1987 crash happened in October. Dianne said that memoryputs a bit of a downer on the market.
Why did property trusts rise on 7 October 2026?
REITs rebounded after falling because theyhad gone ex-dividend and because of the increase in interest rates. Arena REITrose 5%, while Vicinity Centres and Stockland each rose 3%, helping the ASXfinish 49 points higher.
What is Morgans' view on CSL?
Morgans' analyst has a buy rating on CSL,with a price target above its recent close of around $176. The stock rose afterCSL announced an exclusive agreement with Swiss biotech Alentis to co-develop apotential first-in-class treatment.
What is Morgans' view on gold?
Morgans remains positive on gold over thelong term, despite the gold price sitting at a two-month low. Dianne said goldstocks have dropped off quite a bit, which makes for good buying for investorswho can ride through volatility and take a longer-term view.
