Australia equities are a resilient lot, shrugging off a slew of economic headwinds this year to trade at nearly six-year highs. And analysts say the good times are expected to roll on.
The country’s benchmark S&P/ASX 200 has clocked steady gains of almost 4 percent so far this year to trade near the 5,543 level on Monday, despite a slowdown in top trading partner China, subdued consumer confidence and a persistently strong Australian dollar. Last Friday, the index touched a six-year peak of 5,561.
“My central outlook is that the market will move gradually higher in line with moderate earnings growth over the next few months. It’s a period of gently upward sloping drift,” said Ric Spooner, chief market analyst at CMC, who sees the index climbing to 5,700 by year-end, or 3 percent higher than current levels.