A Strong Outlook Despite Dow's Dip
Sun Herald
Sunday September 5, 2004
THE sharemarket is expected to move into record territory this week with bargain hunters buying local shares which are still cheap after the bumper profit and dividend season.
Although a negative result on Wall Street may weigh down the local market tomorrow, Australian shares are likely to perform strongly. Export-orientated companies are expected to benefit the most after a weekend fall in the Australian dollar. "We could have a mixed day on Monday, but I expect the sharemarket to resume its grind higher into record territory this week," CommSec chief equities economist Craig James said. "There are no reasons for any gloom among investors." The US market will be closed tomorrow night for the Labour Day holiday, so Mr James said the local market would have two days to find its feet following the bumper profit season."With the Dow down it would suggest a softer start for our market, but the Australian sharemarket has not religiously followed movements in the Dow over the last few weeks," he said. The Australian dollar fell more than 0.5 US cents as the US dollar rallied against most major currencies.Shares on Wall Street were lower despite news that the US economy had created 144,000 jobs in August and that 73,000 jobs were recorded for July, more than double the previously reported figure. This was in line with expectations, and the US unemployment rate ticked lower, from 5.5 per cent to 5.4 per cent, as a result. But US shares hit the skids after Intel, the world's biggest semiconductor maker, cut its sales forecast because of slowing demand for computers and mobile phones. Intel led all three of Wall Street's key market indices lower.> AFR Investor: Your 16-page liftout inside
© 2004 Sun Herald
