Australian share prices are expected to remain volatile next week amid renewed concerns about the US subprime mortgage market, dealers said. They said the fears about the US credit squeeze that caused the initial market fall were re-emerging, meaning the Australian share market was likely to remain volatile in the short term, despite its strong fundamentals.
For the week to August 31 the benchmark S&P/ASX 200 index ended up 158.7 points or 2.6 percent 6,247.2, building on a 7.4 percent rise in the previous week.
"Shares are likely to remain volatile over the next month or so, with a retest of the lows reached in mid-August a possibility." AMP Capital Investors chief economist Shane Oliver said.
"Credit markets are still dysfunctional, the news out the of US economy will remain weak and there will be more revelations of subprime exposure from banks and investment funds."