Credit Suisse used Twitter to announce its 2015 outlook across individual markets in the Asia-Pacific.
For Australian, Credit Suisse said: “We expect Aussie equities to rally to 6,000 on the ASX 200 by Dec 2015.”
Based on yesterday’s close of S&P ASX 200 5,161.90, that’s a 16.2% rise for the year.
The S&P ASX 200 is currently running below the January 1, 2014, number, meaning Australian equities might end the year at worse than a zero return.
That means the Credit Suisse outlook will start from a low base.
Equities are again in 2015 centre stage of Credit Suisse’s investment strategy.
“Global growth will continue, in our view, and we continue to favour equities in this environment,” Credit Suisse said in its top ten ideas strategy.
Low interest rates – perhaps lower in 2015 – mean companies in Australia are not going to their shareholders to raise funds. This reduces the amount of new shares coming on to the market in 2015 and increases demand for Australian stocks.
Credit Suisse is among several big investment houses expecting two cuts in official interest rate in 2015 following lower than expected economic growth and increasing unemployment in Australia.
Credit Suisse research analyst Hasan Tevfik, a dedicated watcher of the behaviour of self managed super funds, which now own 16% of ASX companies, only sees demand from these “selfies” increasing for Australian stocks.
— CS Research (@csresearch) December 16, 2014
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