The local share market has closed the first half of the calendar year in the green, but inflationary pressures and the risk of recession bring ill portents for investors.
The benchmark S&P/ASX200 index on Friday finished up 8.4 points, or 0.12 per cent, to 7,184.1, while the broader All Ordinaries rose 11.9 points, or 0.16 per cent, to 7,401.5.
The bourse is up 2.3 per cent since the beginning of 2023 but in the last three months has bounced around listlessly between resistance at 7390 and support at 7055.
"Until the ASX200 sees a sustained break of either of these levels, further sideways-range trading is expected," IG markets analyst Tony Sycamore said.
Recession fears and uncertainty around US banks are likely to impact Australian shares negatively in the next quarter, AMP chief economist Shane Oliver said.
"Leading economic indicators continue to point to a high risk of recession in the US and the risk of recession in Australia is now around 50 per cent," he said.
Despite a lower-than-expected consumer price index readout on Wednesday, underlying inflation and retail sales growth remain stubbornly high.
Mr Oliver predicts the Reserve Bank will raise the cash rate by 25 basis points at its July 4 meeting.
However, as central banks start taking their feet off the brakes later in the year, investors can expect reasonable equity returns over the next financial year.
The addition of two more Taylor Swift concerts, resulting in a total capacity of about 630,000 fans, will provide a welcome boost to the Australian economy in 2024.
"These are big events across consecutive days so there will be a bump in related employment, accommodation demand and demand for transport into and out of Sydney and Melbourne," Mr Oliver said.
"A potential feel-good factor may also help (although this may be offset by the many who missed out on tickets - including me)."
The majority of the 11 official ASX sectors gained on Friday with only consumer staples, health care and real estate in the red.
Information technology stocks were the pick of the day, up 0.83 per cent on average. Family tracking app Life360 jumped 3.8 per cent to a one-year high of $7.60, while Xero ascended 1.4 per cent.
Of the heavyweight miners, BHP edged up 0.1 per cent to $44.99, Rio Tinto rose 0.2 per cent and Fortescue Metals finished 0.3 per cent higher.
The big banks were mixed with CBA and NAB up 0.2 and 0.1 per cent respectively, while Westpac dropped 0.4 per cent and ANZ finished flat.
Downer EDI rose 4.3 per cent to a six-month high of $4.11 after sealing a $4.6 billion contract with the Queensland government to design and manufacture 65 six-car trains for the state's new passenger fleet.
Worley rose one per cent to $15.79 after the energy and resources consultancy announced the appointment of former Chevron vice president Joe Geagea to the board.
AGL climbed 0.8 per cent despite the Australian Energy Regulator launching Federal Court proceedings against the company for failing to provide backup electricity services at its Bayswater and Loy Yang A generators between 2018 and 2020.
Bubs recovered from falling 5.6 per cent by lunchtime to finish flat after the baby formula maker lowered revenue forecasts for its China business.
Storage King owner Abacus fell 3.2 per cent after going ex-dividend, while plus-size fashion brand City Chic soared 15.2 per cent to 38c.
Cancer immunotherapy developer Imugene jumped 2.3 per cent to 9.1c after its HER-Vaxx therapy was found to have induced antibodies correlated with tumour reduction, resulting in "statistically significant overall survival benefit".
Vegemite maker Bega Cheese hit a decade low of $2.85 as traders continue to abandon the stock following a disappointing trading update on Tuesday.
Link shares tumbled 13.9 per cent lower after the financial services technology provider announced its contract with superannuation fund HESTA would not be renewed.
The Australian dollar rose against its US counterpart, buying 66.30 US cents, from 66.12 at Thursday’s ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 8.4 points, or 0.12 per cent, at 7,184.1.
* The broader All Ordinaries rose 11.9 points, or 0.16 per cent, to 7,401.5.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.30 US cents, from 66.12 US cents at Wednesday’s ASX close
* 95.92 Japanese yen, from 95.58 Japanese yen
* 60.99 Euro cents, from 60.70 Euro cents
* 52.51 British pence, from 52.39 pence
* 108.84 NZ cents, from 108.81 NZ cents.
