The Australian sharemarket is poised to potentially reach a record high this week, but investors are bracing for possible volatility as the reporting season reaches its peak, with approximately 80 companies scheduled to release their results. The S&P/ASX 200 Index is set to open the week higher, continuing last week’s market rally, which left the local bourse just shy of its record high. Last week, the sharemarket experienced a 2.4 per cent jump, marking its best weekly gain in nine months. It now sits less than 200 points away from its all-time high of 9115.2, achieved in late October.
However, investors are wary of potential price swings, fuelled by concerns that companies may be overspending on artificial intelligence without clear returns. On Friday, the ASX saw a 1.4 per cent decline, while Wall Street concluded the week quietly as technology stocks continued to lose ground. Mining giants BHP and Rio Tinto are expected to dominate headlines with their reports, potentially benefiting from rising copper and strong iron ore prices. Analysts anticipate mining profits to increase significantly this financial year due to surging commodity prices.
JB Hi-Fi, an electronics retailing company, and Wesfarmers, a conglomerate with interests in home improvement and outdoor living, are also due to report this week, providing insights into Australian consumer spending. Their reports will be closely watched for guidance, especially considering the recent interest rate rise and its potential impact on consumer behaviour. Treasury Wines Estates, Aurizon, BlueScope Steel, GPT, and Stockland are among other key companies reporting this week.
Investors will also be closely watching for the release of the Reserve Bank of Australia’s (RBA) meeting minutes from February, which are expected to reinforce a hawkish stance. Key data releases this week, including the wage price index and the January employment report, will further test the economic outlook. Analysts are divided on the employment figures, with forecasts ranging from a loss of jobs to a significant gain.
