Since March 2009, the ASX or the Australian Securities Exchange has already risen remarkably. However according to a recent poll that was conducted by Reuters, the Aussie stock market is expected to rise even more. Yes, there might be phases where the stock prices will firm up, but the general trend will be on the increase.

Market strategists and analysts are of the opinion that the March figures are unlikely to return and they are confident that the worst is definitely over. The worldwide financial crisis might still wound or bruise a few investors, but it now seems that the worst is surely over for a majority of them. In fact, earnings have gone up from lower than 10 times in March this year to about 16 times now.

Reuters organised the poll among 16 analysts and they feel that the benchmark S&P/ASX 200 index will go up to the 4800 levels by December this year. But this is a conservative estimate. There are some analysts who have a feeling that the index might even cross the 5000 barrier and stay above that as well. Naturally this is excellent news as this is surely going to boost investor confidence and make many of them return to the market. Some analysts are even saying that this trend will continue beyond December 2009 and by June next year, the S&P/ASX 200 index could break the 5100 barrier.

All that is now needed is some good demand in raw materials from China, which is the leading trade partner of Australia and some positive corporate results.

In March 2009, the ASX closed at 3145 and if indeed the 5000 level is breached, then this would mean a more than 60% gain in less than 1 year.

Analysts However Ask Investors To Be Careful In Their Dealings

Some analysts are however pointing out that the Australian dollar is now close to a year-high mark, and this is surely going to hurt the exporters because of lower margins. Though the stock market has largely ignored this, but in the mid-term, this is not going to be the case.

It is also likely, they are pointing out, that among the developed nations, Australia might be the first to increase the interest rates and this might also pose a challenge for the companies to keep the returns flowing in.

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