SYDNEY: Australian shares looked set to end 2014 with a scant gain well below the past two years’ robust advances, and weak commodity prices could impact how the market performs in 2015.
This year’s gain was likely to be around 1 percent, compared with 15 percent in both 2012 and 2013.
The S&P/ASX 200 index drifted around its previous close, with investors focused on New Year celebrations. The index was up 3.3 points, or 0.1 percent, at 5419.9.
Michael McCarthy, chief market strategist at CMC Markets, said the big drag on the market has been a big fall in commodity prices, noting large performance differences between sectors.
Further McCarthy said energy and materials, which account for up to one-third of the index, was down 12 to 13 percent this year, whereas in property and healthcare, we have seen 20 percent plus rises.
Miners took heart from a bounce in iron ore prices with Fortescue Metals Group and Rio Tinto both up almost 2 percent. The energy sector followed suit with Santos and Woodside up 0.9 percent, while Origin Energy leapt 1.5 percent.
