Positive outlook for Aussie stockmarket
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.’’