The Australian share market posted a modest gain on Wednesday, driven by strong performances in the technology and healthcare sectors amid mixed signals on inflation and interest rate outlooks. The benchmark S&P/ASX 200 rose 21.4 points, or 0.24 percent, closing at 8808.4, while the broader All Ordinaries added 24.3 points, or 0.27 percent, finishing at 9012.6.
Nine of the ten sectors ended the day with gains, led by technology and healthcare stocks. Key technology companies rallied notably, with accounting software provider Xero climbing 8.17 percent to $70.31, NextDC increasing 2.55 percent to $14.90, and WiseTech Global surging 14.26 percent to $32.86. Healthcare stocks also contributed to the positive momentum, with vaccine manufacturer CSL rising 2.63 percent to $114.99, medical imaging specialist Pro Medicus gaining 3.5 percent to $178.99, and medical device company ResMed up 3.29 percent to $27.93.
Conversely, gold miners saw declines as the price of the metal dipped 1 percent to US$4070 per ounce. Northern Star Resources slipped 0.15 percent to $20.59, Evolution Mining dropped 2.29 percent to $12.35, and Newmont fell 2.19 percent to $139.60.
The Australian dollar retreated during the session, briefly touching an 11-week low at US68.99 cents before recovering slightly to trade at US69.15 cents near the close.
Market activity was shaped by fresh inflation data released by the Australian Bureau of Statistics, which showed headline inflation easing to 4 percent in the year to May 30, down from 4.2 percent in April and below market expectations. This decline was largely attributed to a temporary halving of the fuel excise, leading to an 11.9 percent drop in petrol prices in May following a 7 percent fall in April.
However, the Reserve Bank of Australia’s (RBA) preferred measure, the trimmed mean inflation rate that excludes volatile items like fuel, remained elevated at 3.6 percent for the same period. Analysts highlighted the contrasting signals this presents for monetary policy. IG Markets analyst Tony Sycamore noted that while the softer headline inflation reduces the likelihood of the RBA’s forecasted peak of 4.8 percent inflation around mid-year, the core inflation measure remains close to the 3.8 percent level anticipated for June, indicating ongoing price pressures.
AMP economist My Bui indicated that the inflation data still supports the possibility of an interest rate increase in August. “There is a high probability of a rate hike at the August meeting, after the full set of quarterly inflation data showing sustained price pressures emerges,” she said.
On the corporate front, Baby Bunting’s shares fell 10.64 percent to $1.47 after the retailer revised down its 2026 profit guidance to a pro forma net profit of $16 million to $17 million, below its previous forecast of $17.5 million to $19.5 million. Meanwhile, shares of gold miner Benz jumped 24.06 percent to $2.63 after announcing a maiden exploration target at its Glencubury Gold Project in Western Australia’s Gascoyne region.