S&P/ASX 200 (INDEXASX:XJO) finished stronger by 11 points or 0.2% to 6553 today, boosted by strong gains in the materials and energy sectors.
The index closed the week at a fresh 11-year high, after playing catch up to gains overseas. Over the week, the index jumped 1.7%.
Miners were the main catalyst for the rise after iron ore exceeded over US$103 a tonne. A combination of rising iron ore prices and the RBA’s rate cuts have benefited miners over the past month.
ASX continues to push higher
It is now 139 months since the all-time high of 6873 points on the All Ordinaries Index set back in 2007, which has been the longest period in time that our market has taken to make a new all-time high following a bear market.
In the last 60 years, the longest time was 94 months following the lows in the early 1970’s. Therefore, any suggestion that the Australian market is overheated and running too fast is a little premature.
In the coming week, Reserve Bank events will dominate. Governor Philip Lowe’s speech in Adelaide on Thursday should hog the headlines.
In the US, the Federal Reserve interest rate decision is the key focus of investors over the coming week.