Australian shares registered another decade-long high last week, to close Friday’s trade at 6339, after several weeks failing to break through the psychologically significant 6300-handle. Earnings season gets into full swing this week, with investors hopes of further gains on the ASX resting on the outlook for corporate profits.
After several attempts to break above 6300, the ASX200 finally managed to close above that mark on Wednesday, following strong earnings reports from the likes of Wesfarmers and CSL. The gains appeared to consolidate themselves come Thursday, after QBE, Telstra and Treasury Wine’s results were deemed by investors as being better than expected.
The week ahead for the ASX could be the biggest test yet this earnings season, as investors prepare for fallout of company reports from Woolworths, Fortescue, BHP Billiton, Seven West Media, Lend Lease, and Brambles, to name a few. The market will be looking at the ASX’s ability to climb towards the 6360-mark, given an apparent upward trendline resistance level at that point.