CommSec Tips Better Year for Australia Stocks -- Market Talk
January 01 2015 - 6:00PM
Dow Jones News
[Dow Jones] As U.S. stocks charged higher in 2014, Australia's
stock market had its worst year in three years. But CommSec thinks
the year ahead will be a better one for Australian equities. "After
under-performing in 2014, we tip the ASX 200 to end 2015 between
5,900-6,200 with total returns around 15%," says Craig James, chief
economist at CommSec. "As a result 10-year and 15-year average
returns on shares will be around 10%." He says the share market
will be supported by "favourable" valuations, strong corporate
balance sheets, solid U.S. economic growth, a switch of investor
appetite to shares from property and the continued maturing of the
Chinese economy. The main risks: the health of oil-producing
economies following the slide in oil prices; deflation risks in
developed economies; the state of the euro zone; and the U.S.
correctly timing the start of any rate increases. S&P/ASX 200
trades down 0.2% at 5402.9. (rhiannon.hoyle@wsj.com; Twitter:
@RhiannonHoyle)
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