Australian share prices are tipped to rise next week amid an optimistic seasonal backdrop and a positive lead from Wall Street, dealers said. Despite week on week losses, AMP Capital Investors head of strategy Shane Oliver said the market was on track for further gains.
"The seasonal back drop is positive and underlying fundamentals remain strong," Oliver said. He said corporate earnings continued to rise, making the local market an attractive place to invest and strong growth in China was underwriting the market, particularly the resources sector.
But he warned the market might suffer if global interest rates continued to rise. "We have entered a more constrained and volatile period for the Australian share market," Oliver said.
For the week ending December 2 the SP/ASX 200 index ended down 25.3 or 0.54 percent at 4,623.5, while the broader All Ordinaries index fell 18.7 points to 4,573.8.