Slow growth forecast for Australian stocks
Merrill Lynch has forecast Australia's benchmark index to rise only about 3 per cent in the next 12 months as share prices already reflect expected economic growth and low inflation. The All Ordinaries Index would reach 2,850 points in the next 12 months, Merrill Lynch Australia co-chief executive Greg Bundy said. It would trade between 2,700 and 2,850 in that time, he said. Yesterday, shares slipped 0.29 per cent on profit-taking to end at 2,768.9 points. On Monday and Tuesday it reached new closing highs.