Now
days, Australian stocks are touching five-year highs and market analysts are
saying that Australian indexes are ready and all set to touch new highs in coming
weeks. Now, the question arises; where these stocks are heading to??
Today,
S&P ASX 200 touched a five-year high level for the third consecutive session
and it was trading around 5,370-level in mid morning session. So what is the
sentiment that is driving the market so positively? Analysts suggest couple of
reasons behind this turn around; they say that China is major trading partner
of Australia and recently better economic data from China has boosted not only
the Australian markets but also the major Asian markets like India, Hong Kong
and Japan. Other reasons they give are; the end of political uncertainty in
U.S. coupled with the election of new Australian government. These recent
happenings have helped boosted the sentiment in market.
Although
some analysts are saying that Australian markets are overvalued and good days
are far from over. However, opposite to these views global mining giant BHP
Billiton (the second-largest firm listed on ASX) reported strong
quarterly-earnings which propelled its stock by 2.5 per cent in morning trade.
As we
quoted in one of our previous post that the banking stocks (ANZ, NAB and
Westpac) are pushing new highs. These stocks are among the top five largest
stocks on the index and are ready to report strong numbers which will drive the
market to new highs.
No comments:
Post a Comment