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The shares you should buy now with the Australian share market on verge of a record high

The Australian share market is on the verge of hitting a record high just a year after the Covid lockdowns.

The benchmark S&P/ASX200 briefly touched the 7,000 mark on Thursday – the highest since February 2020 before the World Health Organisation declared a Covid pandemic.

The level is still below the record high of 7,197 was reached on February 20 last year just before a 33 per cent plunge occurred in just one month.

But with the economy rebounding strongly from the coronavirus recession, the Australian Securities Exchange has surged 49 per cent during the past year and is set join the American stock market in also touching record highs.

The Australian share market is on the verge of hitting a record high just a year after the Covid lockdowns. The benchmark S&P/ASX200 briefly touched the 7,000 mark on Thursday - the highest since February 2020 before the World Health Organisation declared a Covid pandemic

The Australian share market is on the verge of hitting a record high just a year after the Covid lockdowns. The benchmark S&P/ASX200 briefly touched the 7,000 mark on Thursday - the highest since February 2020 before the World Health Organisation declared a Covid pandemic

The Australian share market is on the verge of hitting a record high just a year after the Covid lockdowns. The benchmark S&P/ASX200 briefly touched the 7,000 mark on Thursday – the highest since February 2020 before the World Health Organisation declared a Covid pandemic

CMC Markets chief market strategist Michael McCarthy said the local share market was likely to reach an all-time high in May, being just 3 per cent below the peak.

‘It could happen reasonably sharply as long as momentum remains,’ he told Daily Mail Australia.

‘I suspect though, we’ll have a few fits and starts along the way and it’s more likely to happen in May.

‘We have very clear positive momentum both here in Australia and around the globe for shares and while that momentum remains, it seems very likely that we’ll get a test on that all-time high.’ 

A recovery in the advertising market is also helping media companies with Nine Entertainment adding 1.8 per cent to $2.84.

‘Quite clearly, one of the factors of any economic recovery is the likelihood of an increased advertising spend,’ Mr McCarthy said.

A recovery in the advertising market is also helping media companies with Nine Entertainment adding 1.8 per cent to $2.84. Pictured are Married At First Sight's Liam Cooper with his wife Georgia

A recovery in the advertising market is also helping media companies with Nine Entertainment adding 1.8 per cent to $2.84. Pictured are Married At First Sight's Liam Cooper with his wife Georgia

A recovery in the advertising market is also helping media companies with Nine Entertainment adding 1.8 per cent to $2.84. Pictured are Married At First Sight’s Liam Cooper with his wife Georgia

‘The support we’ve seen for their share price is anticipation of a further upswing in the advertising cycle.’

Australia’s resurgent property market is also boosting certain stocks.

In March, prices records were set in 61 of Australia’s 88 sub markets as national values surged at the fastest pace since October 1988, CoreLogic data showed.  

Real estate sale shares did well on Friday with Domain Group adding 0.7 per cent to $4.71 and its larger rival the REA Group, the company behind realestate.com.au, added 0.8 per cent to $154.79.

‘The gains we’ve seen for them I’d suggest are a direct reflection of increased activity,’ Mr McCarthy said.

Real estate sale shares did well on Friday with Domain Group adding 0.7 per cent to $4.71 and its larger rival the REA Group, the company behind realestate.com.au, added 0.8 per cent to $154.79. Pictured is a Vaucluse home in Sydney's east

Real estate sale shares did well on Friday with Domain Group adding 0.7 per cent to $4.71 and its larger rival the REA Group, the company behind realestate.com.au, added 0.8 per cent to $154.79. Pictured is a Vaucluse home in Sydney's east

Real estate sale shares did well on Friday with Domain Group adding 0.7 per cent to $4.71 and its larger rival the REA Group, the company behind realestate.com.au, added 0.8 per cent to $154.79. Pictured is a Vaucluse home in Sydney’s east

The ASX200 was marginally weaker on Friday, slipping 0.08 per cent to 6,993 but has gained 2.5 per cent during the week.

Pharmaceutical giant CSL plunged 1.1 per cent to $262.95 after Prime Minister Scott Morrison announced on Thursday night the AstraZeneca vaccine it is manufacturing in Australia would not be recommended for those under 50.

But some stocks defied the broader market slip, with Afterpay adding 1.6 per cent to $121.99.

The buy now, pay later app’s share price has surged dramatically from a low of just $8.80 in March last year but it is still below the $158 peak hit in February when it briefly overtook Telstra in the market capitalisation stakes.

But some stocks defied the broader market slip, with Afterpay adding 1.6 per cent to $121.99. The buy now, pay later app's share price has surged dramatically from a low of just $8.80 in March last year but it is still below the $158 peak hit in February when it briefly overtook Telstra in the market capitalisation stakes

But some stocks defied the broader market slip, with Afterpay adding 1.6 per cent to $121.99. The buy now, pay later app's share price has surged dramatically from a low of just $8.80 in March last year but it is still below the $158 peak hit in February when it briefly overtook Telstra in the market capitalisation stakes

But some stocks defied the broader market slip, with Afterpay adding 1.6 per cent to $121.99. The buy now, pay later app’s share price has surged dramatically from a low of just $8.80 in March last year but it is still below the $158 peak hit in February when it briefly overtook Telstra in the market capitalisation stakes

Mr McCarthy said Afterpay simply benefited from a broader support for tech stocks on Thursday night. 

‘One of the reasons we’re seeing support for Afterpay is it’s following that general global trend,’ he said. 

Other market analysts including IG are wary of high-risk buy now, pay later stocks including Afterpay and its smaller rival ZipCo, which was up 0.2 per cent to $8.30, after the Commonwealth Bank last month unveiled its own buy now, pay later app. 

Freight rail operator Aurizon added 1 per cent to $3.96. 

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