Pos­i­tive out­look for Aussie stock­mar­ket

Townsville Bulletin - - Investor -

THE Aus­tralian stock mar­ket is poised to break new records when it re­sumes trad­ing to­day as ris­ing salaries trig­ger de­mand for shares amid tra­di­tion­ally thin year-end trad­ing.

On Fri­day, the Aus­tralia’s bench­mark S&P/ASX200 in­dex rose 20.2 points to 5603.7 points, just shy of its record 5607.6 points reached on Wed­nes­day. The All Or­di­nar­ies gained 16.1 points to 5577.8 com­pared with its record 5586.9, which was also reached on Wed­nes­day.

Aus­tralia’s share­mar­ket has gone from strength to strength this year as prof­its and wages rise amid 16 years of eco­nomic growth.

Now its bourses are get­ting one fi­nal push dur­ing the last week of 2006, this time from salaried Ja­panese work­ers en­joy­ing record year-end bonuses.

‘‘We ex­pect ma­jor global share mar­kets, in­clud­ing the Aus­tralian share mar­ket, to make new highs by year’s end as the tra­di­tional Santa Claus rally kicks in,’’ AMP Cap­i­tal’s head of in­vest­ment strat­egy and chief econ­o­mist Shane Oliver said.

‘‘Shares are nor­mally strong over the Christ­mas/New Year pe­riod as trad­ing vol­umes are thin and op­ti­mism about the new year and an­tic­i­pa­tion that bonus pay­ments will find their way into share mar­kets see share prices push up.’’

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