Local bourse rocked by rate fears

By the Editorial Team · Tuesday, September 22, 2026

The Australian sharemarket saw minimal overall movement on Monday as investors rotated out of rate-sensitive technology stocks and into healthcare and financial sectors amid expectations of further interest rate hikes. This cautious trading reflects increased market anticipation of monetary tightening, with investors bracing for continued inflation pressures ahead of the Reserve Bank of Australia's September meeting.

The Australian sharemarket experienced cautious trading on Monday as concerns over further interest rate increases prompted investors to shift away from rate-sensitive sectors. The benchmark S&P/ASX 200 index closed marginally higher by 0.01 percent at 8,719.1 points, while the broader All Ordinaries index dipped 0.04 percent to 8,919.1. The Australian dollar strengthened against the US dollar, trading at 71.26 cents.

Of the 11 sectors on the bourse, five ended the day in positive territory, with healthcare and financials among the strongest performers. Conversely, technology stocks came under pressure, weighed down by fears of increased borrowing costs.

Major banks posted gains following comments made last week by Reserve Bank of Australia (RBA) Governor Michele Bullock, who signaled that inflation risks had intensified, raising the likelihood of additional rate hikes. Commonwealth Bank rose 0.37 percent to $152.99, National Australia Bank gained 0.65 percent to $38.72, Westpac increased 0.52 percent to $34.93, and ANZ added 0.93 percent to $38.03.

In the healthcare sector, CSL advanced 1.54 percent to $178.30, Fisher & Paykel Healthcare rose 1.51 percent to $35.74, and Cochlear surged 5.27 percent to $140.95. By contrast, technology companies faced declines: Xero fell 4.3 percent to $60.08, WiseTech Global dipped 0.9 percent to $31.77, and NextDC decreased 3.35 percent to $10.98.

Market participants fully priced in another interest rate hike for the RBA’s upcoming meeting scheduled for September 28–29, reflecting a significant increase from an approximately 85 percent probability seen the previous week. According to Joseph Marassa, an analyst at Global X ETF Strategy, investors are engaging in a “defensive rotation” amid expectations of a prolonged period of higher interest rates and persistent inflation pressures. He noted that healthcare stocks have helped offset weakness in more rate-sensitive sectors, but the overall environment remains challenging due to ongoing monetary tightening.

In corporate announcements, Perpetual’s shares plunged 15.1 percent to $16.64 after the company rejected a takeover proposal from Swedish firm EQT, which had offered $22.50 per share. Telix Pharmaceuticals shares dropped 11.71 percent to $15.76 following its acquisition of German company Isotope Technologies Munich (ITM). The deal involves an upfront payment of US$1.65 billion (A$2.32 billion), with the potential for an additional payment of up to US$980 million tied to sales performance.

The best-performing stock on the ASX 200 was gold miner Ramelius, which jumped 6.15 percent to $3.80. The company’s medium-term production forecast projects annual output to increase to between 560,000 and 610,000 ounces by the 2030 financial year.

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.