Australian share prices are set to stabilise in this week following a fortnight of volatility caused by market heavyweights announcing full-year reports, dealers. "Certainly the volatility, I'm not going to say it's going to decline, but it may reduce slightly and we could get more daily linear results," said Phil Martin, senior dealer at CMC Markets.
Australia's largest companies, including Anglo-Australian miner BHP Billiton and telecommunications giant Telstra, have posted their full-year reports in the past fortnight.
BHP Billiton, which Wednesday announced an annual net profit of 6.5 billion US dollars, the highest result in Australian corporate history, had left the market volatile, Martin said.
But the earnings reports to come in the coming week, which include Origin Energy Australia, beverages giant Foster's Group and gaming and entertainment company Tabcorp Holdings, were unlikely to move the market as much.
"The materials sector... have all reported, they are the ones that could really move the market," Martin said.
However, information from China or changes in the oil price could affect the market significantly, he said.
AMP Capital Investors head of investment strategy, Shane Oliver, said despite the market being near all-time highs, valuations remained attractive, profit growth was robust and underlying demand for shares was strong.
"While we continue to anticipate a period of consolidation or correction over the next few months, particularly if US shares correct amid renewed concerns about high oil prices and interest rates, there is little reason to be bearish," Oliver said.
"Given the strength in earnings and the rising trend in commodity prices it wouldn't be surprising to see the market move through 4,600 by year-end," he added.
For the week ending August 26 the SP/ASX 200 index closed down 9.1 points at 4,452.5 while the broader All Ordinaries index was down 10.8 at 4,419.1.
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