Sharemarket rise longest in 10 years
The Australian sharemarket made gains for the tenth successive day yesterday, the longest run of positive days in a decade. The All Ordinaries index gained 127 points to 3292 since between October 2 and 15 following a rally on the New York Stock Exchange. Analysts believe the Australian sharemarket can gain further with the global economy is set to improve.
However, several analysts issued warnings that inexperienced investors could lose out if they get caught up in hype and buy poor-quality stocks. ABN Amro Morgans' Tim Carvolth said a lot of companies are listing, hoping to ride the wave, but more gains will come for quality companies that survived the downturn following the April 2000 dotcom crash.
AMP's Bob Cunneen said the sharemarket is now much better value than the residential property investment market. The sharemarket is underpinned by good company profits, and strong business and consumer confidence. Westpac's Huw McKay said he expects the sharemarket to be driven further upwards as investors switch from property. CommSec's Craig James said interest rate rises won't stop the market climbing but will keep share prices at a sustainable level.