Australian shares are expected to continue their record-breaking run next week as interest rates remain on hold, but analysts on Friday warned a short-term correction was also on the cards.
For the week to February 2, the benchmark SP/ASX 200 ended at a fresh record high of 5,831.5, rising 61.6 points or 1.07 percent on the previous week's 5,769.9.
The market posted record highs in three of its five sessions in the week to Friday and AMP Capital Investors chief economist Shane Oliver said there was a chance of more all-time highs in the coming week.
But he warned the Australian market should not become over-exuberant. Commsec chief equities economist Craig James echoed the sentiment, saying history suggested an early New Year bounce could fall flat in February.
"January was a positive month for the Australian share market but investors shouldn't bank on it being just as good in February," he said.
"Over the past decade, the Australian share market has fallen five times during the month of February, with stocks going backwards on average by 0.6 percent."
The Reserve Bank's monetary policy committee will meet Tuesday but is expected to leave interest rates unchanged on 6.25 percent amid signs inflation is waning.
Economic date released during the week includes retail trade, building approvals and job advertisements. Earnings season continues with resources giant BHP Billiton and Optus-owner SingTel among those reporting.
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