The Australian share market has opened stronger after closing on a post-GFC high yesterday.
The S&P/ASX200 was trading up 11.9 points at 5529.7 a short time ago.
CMC Markets’ Chief Market Analyst Ric Spooner told Business Insider the ASX has had a solid opening.
“We’ve got a firm opening, probably not as strong as some had hoped,” he said.
Spooner said US futures have had a strong lift overnight off the back of Apple and Facebook results which were announced after the close but it hasn’t resonated much with Aussie traders.
“Our market hasn’t responded a great deal to that for a number of reasons,” he said.
The first has to do with the size and strength of Australia’s tech sector, “it isn’t represented as strongly here,” he said.
The second is the effect of a short working week and another long weekend with the ANZAC Day public holiday on Friday.
“People prefer to wait and see what happens,” Spooner said. “Even though it’s been a big week for news it’s been quiet.”
He also noted over the last few days there has been a “fair bit of buying of yield stocks” including banks and Woolworths and other companies that traditionally pay big dividends. However Spooner said most of these stocks are already “fully valued” and any growth will be steady.