Australian market stalls as rate-rise fears trigger tech sell-off and defensive shift

On Monday the Australian share market showed little net movement, with the benchmark index rising about 0.01% to 8,731.90 and the All Ordinaries falling around 0.04% to 8,919.10, while the Aussie dollar firmed to 71.26 US cents. Five sectors ended in positive territory, led by healthcare and financials, which lifted stocks like Commonwealth Bank, National Australia Bank, Westpac, ANZ, CSL, Fisher Paykel Healthcare and Cochlear.

Technology stocks dragged the market lower, with Xero down 4.30%, WiseTech Global off 0.90% and NextDC losing 3.35%. The shift reflects growing expectations that the Reserve Bank of Australia will raise rates again at its September meeting, a view reinforced by Governor Michele Bullock’s recent warning on inflation risks. Analyst Joseph Marassa said investors are rotating into defensive holdings as higher-for-longer rates persist. Company-specific news included Perpetual’s 15.10% plunge after rejecting EQT’s buyout offer and Telix Pharmaceuticals’ 11.71% drop following its announced purchase of Germany’s Isotope Technologies Munich.