Good gains tipped for new year
The sharemarket is expected to start the new financial year in a healthy position after posting the strongest gains since before the global financial crisis.
The benchmark S&P/ASX 200 Index climbed 17.3 per cent in the year to June 30, marking the steepest financial year climb since 2006-07.
Despite a roller-coaster ride last week, the gains of 2012-13 were the third fastest for the Australian market since 1987.
Stockbroking firm Lonsec's senior client adviser, Michael Heffernan, said the Australian market was likely to expand by 15 to 20 per cent in the new year as interest rates stayed low, an election was held and European economies improved.
"We'll be travelling in a pretty moderately volatile way ... over the next few months but I'm more positive about the year as a whole," he said.
Mr Heffernan is expecting the local market to have a subdued start on Monday, after minor losses on Wall Street on Friday, at the end of a three-day rally.
"At the end of the day, we might finish in front," he said.
The Dow Jones Industrial Average lost 0.76 per cent as the broad-based S&P 500 shed 0.43 per cent.
Investors are keeping their eyes on the Reserve Bank's July board meeting on Tuesday, with most economists expecting the cash rate to stay at a record low of 2.75 per cent.
"There's an even chance of a rate cut, if not then, then in August," Mr Heffernan said.
A day after the RBA board meeting, governor Glenn Stevens is addressing an Economic Society of Australia business luncheon in Brisbane. His deputy, Philip Lowe, is speaking to a global financial stability conference in Sydney on Thursday.
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