Banks’ rally balances tech tank

By the Editorial Team · Wednesday, October 14, 2026

Australia's sharemarket closed almost flat, with losses in technology and mining sectors offset by gains in major banks amid concerns over AI investment prospects and a hawkish Reserve Bank of Australia. The cautious market reaction reflects investor anxiety about inflation control measures and economic growth risks, while corporate news such as Raiz's tax liabilities and executive changes at Domino’s also influenced trading.

Australia's sharemarket closed largely unchanged on Tuesday amid mixed sector performances and ongoing concerns about the outlook for artificial intelligence (AI) investments and a firm stance from the Reserve Bank of Australia (RBA).

The benchmark S&P/ASX 200 edged up 0.7 points, or 0.01 percent, to close at 8783.9, while the broader All Ordinaries index slipped 15.2 points, or 0.17 percent, to 8921.5. The Australian dollar strengthened against the US dollar, trading at 69.62 US cents late in the session.

Market activity was characterized by a split between advancing and declining sectors. Seven of the 11 major sectors posted gains, but losses in technology and mining stocks limited overall market gains. The technology sector dropped sharply by 4.37 percent, with key players such as Codan down 6.04 percent to $63.28 and WiseTech falling 2.82 percent to $33.11.

Mining shares also suffered amid falling commodity prices, particularly for copper and aluminium, which investors linked to uncertainties around AI-related spending. BHP was down 1.84 percent at $61.28, while Rio Tinto declined 2.4 percent to $161. The dip followed announcements from Chinese company CXMT about breakthroughs in memory technology, intensifying competition and price pressures in the global semiconductor industry. This development had broader regional impacts, with South Korea’s KOSPI Index dropping more than 6 percent to its lowest level since July, reflecting the chip sector's weakness.

Supporting the market were strong gains in the major Australian banks. Commonwealth Bank rose 2.32 percent to $154.50, National Australia Bank increased 1.87 percent to $39.25, Westpac climbed 1.53 percent to $35.16, and ANZ ended 1.27 percent higher at $38.39.

Investor sentiment was also dampened by the minutes from the latest RBA monetary policy meeting. These revealed a decisively hawkish tone, indicating the central bank’s commitment to reducing inflation, even if it comes at the cost of slower economic growth. Commonwealth Bank’s head of Australian economics, Belinda Allen, noted the RBA’s shift away from prioritizing labor market strength to a more aggressive stance on inflation. The minutes highlighted greater tolerance for weaker growth and employment in the face of persistent supply shocks, a rising neutral interest rate, and a focus on upside risks to inflation with limited concern for downside growth risks.

Among individual companies, shares in micro-investment platform Raiz plummeted 32 percent to 34 cents following its emergence from a trading halt that began on October 9. The company revealed potential material tax liabilities dating back to 2015 and is cooperating with the Australian Taxation Office and the Australian Securities and Investments Commission.

Domino’s Pizza Enterprises shares remained flat at $21.90 after the departure of its Australian and New Zealand chief executive just nine months into the role. The company’s group chief executive, Andrew Gregory, will assume the position.

Meanwhile, PointsBet shares declined 1.8 percent to 82 cents after reporting a 16 percent drop in first-half revenue to $113 million, with normalized earnings before interest, tax, depreciation, and amortization expected to be negative $6 million to $8 million.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.