Australian share prices are likely to continue to fall next week as the end of the financial year looms and investors sell off loss-making stocks, dealers said on Friday. For the week ending June 6, the benchmark S&P/ASX 200 closed down 62.6 points or 1.1 percent at 5,592.1.
"Shares are likely to remain volatile and under pressure in the short term," AMP capital Investors chief economist Shane Oliver said.
"The May to October period is often difficult for shares and the full economic fallout from the US housing slump, credit crunch and high oil prices along with rising inflation is yet to be seen." Oliver said shares could fall five percent in coming months.
"Australian shares are also yet to see the full fallout from the rise in local interest rates and the strong Australian dollar and are vulnerable to weaker commodity prices over the next few months along with 'tax loss selling' this month," he said. ANZ economist Alex Joiner said the highlights in the coming week were housing and jobs data. "We are expecting another reasonable gain in employment in May, continuing the strong run of labour market outcomes over the last year and a half," he said.
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