Share market closes in on 5,000 barrier

The Australian share market is tipped to hit the 5,000 mark some time this week for the first time since April 2010.

Last Friday, the All Ordinaries Index rallied to 4,989 and the ASX 200 closed at 4,971.

Shane Oliver is the chief economist and head of investment strategy at AMP Capital.

He told Radio National Breakfast the local share market could be sitting around the 5,300 mark by the end of the year.

"We're so close to the 5,000 level and I think we'll probably see it sometime in the next week or so - it's only 0.6 per cent away in percentage terms," he said.

"It is a bit of a psychological barrier, so that might cause a bit of a constraint once we get there, but I wouldn't be at all surprised if we do see that level." Although, investors may have to wait a little longer than today to see 5,000 breached, with the ASX SPI 200 futures contract down 9 points at 4,926, pointing to a negative start on the local bourse today.

Australia's profit reporting season also moves into full swing this week, with results expected to provide a fairly downbeat picture of the country's corporate sector.

The Commonwealth Bank and Rio Tinto are among the bigger companies to detail their earnings for the six months to the end of December, with ANZ to provide a quarterly earnings update.

Shane Oliver says weaker economic conditions are likely to have taken a toll on the results.

"They'll probably tell us that profits are pretty soft, particularly in the resources sector, because these profit results relate to the second half of last year and that of course was the weak point in terms of commodity prices," he observed.

"So I think, overall, the results will be fairly soft."

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9332+0.0005+0.05%
    AUDUSD=X
    0.5558+0.0005+0.09%
    AUDGBP=X
    0.6755+0.0003+0.05%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg