The first week of June typically kicks off a wave of selling in some of the Australian sharemarket’s biggest laggards as investors try to lower their tax bill before the end of the financial year.

This so-called tax-loss selling is a tried and tested strategy where investors dump underperforming stocks to crystallise losses that can then be used to offset capital gains made elsewhere. It has worked 72 per cent of the time going back to 2000, according to data compiled by MST Marquee.

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