Excess cash drives stock market rise

Listed investment company Argo Investments says its net profit for the December half year is expected to be comfortably ahead of the previous corresponding period. But Argo said the outlook for the share market this year was mixed, after the firm's investment portfolio produced exceptionally strong income growth last financial year. Managing director Rob Patterson said that while some of the share market's performance last year was due to strong company profits, the remainder was caused by excess investment cash pushing valuations of many Australian companies higher.