Australia 200 afternoon report: 26 June 2025

The Australia 200 trades 4 points (-0.05%) lower at 8555 as of 2.45pm AEST.

Australia 200 trading ranges narrow

The Australia (ASX) 200 has returned to narrow daily ranges and low volumes, echoing last week's trading patterns. So far, the index has traded in a 26-point range today, following yesterday’s narrow 30-point range.

The quiet session for the Australia 200 followed a dull session on Wall Street, as Middle East tensions faded further into the background. Wall Street's gauge of fear, the CBOE volatility index (VIX), closed at its lowest level since February.

Australia 200 stocks

Technology sector

Despite a strong session for United States (US) tech stocks, the Australia 200 information technology (IT) sector declined 1.81%. The weakness was led by Xero, which fell 4.76% to $184.99 after investors digested its $2.5 billion acquisition of US-based Melio Payments.

While the deal may strengthen Xero’s positioning as a global software player, concerns remain over the acquisition price, the potential dilution of free cash flow margin, and the integration of a loss-making business.

• Tyro Payments dropped 2.86% to $0.85
• Block (owner of Afterpay) declined 1.27% to $98.73
• Zip slipped 1.02% to $2.91
• DroneShield surged 5.61% to $2.26 after adding 19.89% yesterday, following news of a $61.6 million contract—its largest to date—with a European military reseller

Financial sector

The Australia 200 financial sector hit a fresh record for the third session this week, supported by strength in the banks:

• Australia and New Zealand Banking Group Limited (ANZ) gained 2.06% to $29.70
• Commonwealth Bank of Australia (CBA) added 0.07% to $191.52, though failed to notch a fourth consecutive record high. CBA’s rally appears stretched, with the daily relative strength index (RSI) now at its most overbought level since December 2023
• Westpac edged down 0.09% to $34.51
• National Australia Bank slipped 0.09% to $40.02
• Macquarie declined 0.57% to $215.67

Materials sector

The major iron ore miners posted mixed results:

• BHP Group dipped 0.12% to $36.06
• Rio Tinto gained 0.24% to $104.56
• Fortescue Metals Group rose 0.17% to $14.90

Lithium stocks

Lithium shares rallied after reports that Vanguard had taken a stake in Pilbara Minerals, sending the stock 7% higher to $1.33. 

• Iluka Resources jumped 4.00% to $3.63
• Liontown Resources advanced 4.00% to $0.71
• IGO Limited gained 2.9% to $4.05

Australia 200 technical analysis

After the Australia 200 hit a new record high of 8639 earlier this month, the RSI was noted at its most overbought level since December 2023 (which was followed by a 4% pullback).

The 2.5% pullback since then into Monday's 8421.1 low helped the index work off overbought readings in an orderly manner, indicating that the move lower to the 8421.1 low was a correction rather than the start of an impulsive move lower.

Provided the Australia 200 holds above support at 8420/8400 on a sustained basis, the view is that the correction from the 8639 high is complete at Monday's 8421.1 low. A retest and break of the 8639 high will likely be forthcoming.

Australia 200 daily chart

• _{Source: TradingView. The figures stated are as of 26 June 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}