Australian shares likely to pick up

08 May, 2006

Australian shares are expected to pick up next week, with continuing strong demand for commodities helping the key resources stocks and so the market overall, dealers said.
They said the initial surprise caused by Wednesday's interest rate hike had largely faded by the close Friday and investors were once again looking forward to further gains in what has proved to be a very resilient market.
For the week to May 5, the benchmark S and P/ASX 200 index was down 3.1 points at 5,255.4 after something of a roller-coaster five sessions.
CMC Markets analyst Josh Whiting said the market had enjoyed sustained gains for months and this was likely to continue in the short-term in the absence of any change in commodity prices.
"I think that as long as commodities continue to drive forward then the resources sector is likely to lead the general market forward," he said.
Whiting said while the market experienced a pull-back on Thursday "yet again bargain hunters come back in.
"Maybe the market is due for a consolidation but a deep correction is not on at this stage," he said.
Chief economist at AMP, Shane Oliver said the market had benefited from the central bank signalling no further imminent moves on interest rates after hiking its official cash rate 25 basis points to 5.75 percent on Wednesday.

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