Mar 27 2009
Australian Shares Complete Another Week Of Gains
The Australian stock market has continued it’s recent upward trend by finishing off another week in the black. That’s the third week of gains in a row. The benchmark all ordinaries index closed the week at 3,616 points which is a gain of over 6% for the week. Even though Australian shares have recovered a lot of lost ground since the lows earlier this month, they still haven’t quite wiped out all of their losses for the year.
These gains probably give weight to the spreading confidence that the worst is over - that a low point has been reached and things will improve from here. I have no idea whether this is the case, but even if the low point is behind us, I still don’t believe it will be smooth sailing from here. Economies around the world are in decline and there are academic debates going on in the Australian Media as to whether we are in a “technical” recession. While I know the sharemarket looks forward and anticipates how things will look well into the future, it will likely pull back at the slightest hint of bad news.
