Australian share prices are expected to again push into record territory next week but the market's current growth rate is unsustainable and any bad news could spark a correction, dealers said Friday.
The benchmark SP/ASX 200 ended the week up 71.8 points or 1.2 percent at 6,207.5 after hitting a record close of 6,236.9 Wednesday. Commsec chief equities economist Craig James said the share market was delicately poised.
"The current growth pace for the share market can't be sustained and it would only take a few pieces of bad news - in late February - to take a few hundred points off key indices," he said.
"Having said that, the share market is fundamentally well supported, private equity interest still abounds and the share market is supported by superannuation (pension fund) inspired inflows to June 30. James said the Australian market was likely to follow Wall Street's lead, although domestic inflation figures due out Tuesday would generate considerable interest.
He expected inflation to rise 0.5 percent in the March quarter, dragging the annual inflation rate down from 3.3 percent to 2.9 percent.
He said the figures were unlikely to prompt the Reserve Bank to lift interest rates. ANZ Bank fixed income analyst Patricia Gacis said the inflation figures would be a major factor in the central bank's deliberations at its monthly monetary policy meeting on May 1.
"We think that the chance of a RBA rate rise will fall markedly if the core CPI outcome comes in at or below 0.6 percent." The market will be closed next Wednesday for the Anzac Day public holiday.