Australian share prices were likely to shrug off a mixed global lead and resume a rally led by mining and energy stocks in the coming week, dealers said on Friday.
For the week ending June 22, the benchmark S&P/ASX 200 closed up 88.8 points or 1.41 percent at 6,382.6, just below the record close of 6,397.0 set on Wednesday.
AMP Capital Investors chief economist Shane Oliver said Australian shares were likely to go higher, led by resource stocks. "It's looking likely that the bond market driven correction in shares is now over and that the rising trend in share markets will soon resume," he said.
"The bull market in shares is alive and well and this is likely to remain the case for some time to come." Oliver said the Australian market should soon break through the 6,400 point-level for the long term, buoyed by the inflow of investment from the government's pension investment fund, the Future Fund.
"While the Australian share market has been stuck in a range between about 6,200 and 6,400 since early May, it is likely to soon break decisively through the 6,400 level," he said.
"Past experience suggests that when it does it will be followed by a quick run-up to around the 6,600 level. "The investment of superannuation inflows and Future Fund assets are likely to be key drivers."
The 51 billion Australian dollar (43 billion US) Future Fund is designed to pay for the pensions of civil servants in the decades to come. CMC Markets chief analyst David Land said the share-market would likely react to US economic data, as well as the direction of the Australian dollar, in a week devoid of major domestic data releases. "While it's been a good run on the market, it's been an amazing run on the Australian dollar," he said.
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