Stocks rise despite RBA’s move

By the Editorial Team · Wednesday, September 30, 2026

Australian shares rose modestly after the Reserve Bank of Australia announced its fourth interest rate increase this year, with the technology sector leading gains and overall market sentiment reflecting cautious anticipation of future rate moves. Despite the rate hike, subdued consumer spending and mixed responses across sectors suggest investors are balancing growth prospects against potential economic headwinds.

Australian shares edged higher on Tuesday following the Reserve Bank of Australia’s (RBA) announcement of its fourth interest rate hike for the year. The S&P/ASX 200 index increased by 0.34 percent, adding 29 points to close at 8709, despite six of the 11 sectors ending the day in negative territory.

The technology sector led gains with a 4.6 percent rise, driven largely by Adelaide-based drone component manufacturer Codan, whose shares surged 23.9 percent to a record high of $64.43. Other notable rises included mining services firm Perenti, which jumped 8.8 percent after securing new drilling contracts in Australia and Senegal. Drone technology company Elisght gained 7.7 percent, while Megaport and WiseTech recorded increases of 9.4 percent and 3.1 percent, respectively.

The market’s response to the interest rate increase was subdued among rate-sensitive stocks, as investors appeared more focused on expectations for future moves by the RBA. Russel Chesler, head of investments at VanEck, noted that the market has largely priced in another rate hike by February 2027, but cautioned that a December increase could come sooner. He highlighted the ongoing effects of recent oil price spikes on supply chains and consumer costs. Chesler also suggested the market might be overestimating the number of rate increases, pointing to weakening consumer and business confidence along with declining housing prices.

In contrast to the technology sector’s strength, real estate stocks slipped 0.2 percent, with Goodman down 0.5 percent. However, Mirvac and Dexus posted modest gains of 0.9 percent and 1.5 percent, respectively. Data released prior to the rate announcement showed a drop in household spending in August—particularly in recreation and culture, clothing and footwear, and alcohol and tobacco sectors. Discretionary spending declined 0.3 percent following a 1.1 percent rise in July.

Within consumer discretionary stocks, Wesfarmers advanced 1 percent, Aristocrat Leisure rose 0.8 percent, and JB Hi-Fi, Lovisa, and Tabcorp each gained between 1 and 2 percent. In the banking sector, Macquarie was the first major lender to confirm it would fully pass on the rate hike to customers, with shares rising 0.9 percent. Commonwealth Bank shares declined 0.8 percent, while ANZ, NAB, and Westpac remained mostly flat.

Block Inc., owner of Square and Cash App, saw its shares fall 2.5 percent ahead of the implementation of a card surcharge ban on Thursday, compounded by founder Jack Dorsey selling another portion of his shares.

Meanwhile, Northern Star shares dropped 0.8 percent to $22.29 amid ongoing discussions with Gold Fields over a proposed takeover valued above $38 billion. Gold Fields described Northern Star’s rejection of the offer as the result of limited engagement despite several months of negotiations. Other resource stocks experienced gains, with BHP up 1.4 percent and Rio Tinto adding 0.8 percent.

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.