Australian share prices are expected to continue volatile next week amid uncertainty over whether a global correction has run its course, dealers said Friday.
While most feel that fundamentals are sound and share prices reasonable, the recent roller-coaster ride has hit sentiment badly and much will depend on Wall Street's reaction to a key US employment report due later Friday, they said. The benchmark SP/ASX 200 closed the week up 44.2 points or 0.76 percent at 5,830.2 after a 4.14 percent plunge the previous week.
AMP chief economist Shane Oliver said investors were jittery about the market's short-term direction but fundamentals remained sound and the longer-term outlook was solid.
"While share markets have had a bounce from oversold levels over the last week, it is too early to call the all clear," Oliver said.
"However, we remain of the view that recent turmoil is just another correction in a still rising bull market trend.
"Share market valuations both globally and in Australia are reasonable, profit growth is likely to remain robust, the current slowdown in global growth will help to sustain the low inflation/low interest rate economic expansion and there is lots of cash out there looking for a home," Oliver said. "So notwithstanding a bit of short term volatility, global and Australian share markets are likely to provide solid gains over the remainder of the year," he added.