Australia’s sharemarket climbed to a three-month high on Wednesday, driven by strong earnings from major banks and miners. The benchmark S&P/ASX200 rose 1.66 per cent to 9,014.8 points, as investors responded to billion-dollar profit results and rising commodity prices.
ASX Surges Toward Record Territory
The S&P/ASX200 gained 147.4 points to close at 9,014.8, marking its highest level since late October. The broader All Ordinaries index also advanced 1.55 per cent to 9,281.9.
Momentum carried into Thursday trading, with the ASX200 briefly touching 9,100 points shortly after 1 pm. The index is now approaching its intraday record of 9,115.2 and the record closing level of 9,094.7 set in October 2025.
Aussie indices performance: S&P/ASX200 (blue) vs All Ordinaries (green) showing gains through February 2026. [Source: AAP]
Eight of the 11 sectors finished higher on Wednesday. Financials led the rally, while energy stocks traded flat and real estate shares posted modest movement. Healthcare was the weakest segment, weighed down by CSL.
Commonwealth Bank Drives Financial Rally
Commonwealth Bank delivered a record first-half cash profit of $5.45 billion, lifting investor sentiment across the banking sector. Its shares climbed more than six per cent to $169.63, marking the largest single-day gain in five years.
Commonwealth Bank posted a record $5.45 billion first-half cash profit. [Picture: Reuters]
The lender announced an interim fully franked dividend of $2.35 per share, up four per cent from the previous year. Market strategist Aaron Zanchetta said the bank’s after-tax cash profit exceeded expectations due to disciplined lending and deposit growth.
In media coverage shared widely online, financial commentators noted that the raised dividend reflected confidence in earnings resilience and capital strength. CBA’s market capitalisation expanded by about $20 billion during the session.
Other major banks followed the upward trend. NAB rose more than three per cent, Westpac gained over two per cent, and ANZ advanced modestly on Wednesday before surging 10 per cent on Thursday.
ANZ Posts $1.94 Billion Quarterly Profit
ANZ shares jumped 10 per cent after reporting a $1.94 billion cash profit for the three months to December 31. The result marked the second strong banking performance in consecutive days.
The gains lifted sentiment across the financial sector. NAB shares reached $47, rising about seven per cent, while Westpac climbed nearly six per cent. Investors responded to the scale of profits and stable lending conditions.
Market analysts said the results signalled continued strength in lending activity during the half-year period. The banking sector’s performance pushed the broader index closer to record levels.
Materials and Miners Extend Gains
The materials sector also contributed to the rally, supported by higher commodity prices. Evolution Mining rose 8.7 per cent to a record high after announcing a record interim dividend of 20 cents per share.
ASX materials sector trend over six months, showing gains in major mining stocks through February 2026. [Source: Yahoo Finance]
The Company also confirmed a $120 million deal with a Canadian miner to expand its New South Wales gold operations. Gold prices traded at $US5,055 per ounce, with the ASX gold benchmark up three per cent on Wednesday.
Major miners added to the upward move. BHP gained 1.6 per cent, Fortescue rose 2.3 per cent, and Rio Tinto advanced 1.2 per cent. Rebounding commodity prices supported buying across the sector.
James Hardie also posted strong gains, rising more than 10 per cent. The building supplies group upgraded full-year profit guidance and accelerated a previously announced $14 billion buyout.
Utilities and Energy Stocks Advance
Utilities stocks recorded solid growth during the session. AGL Energy surged nearly 12 per cent after exceeding profit and dividend expectations for the six months to December.
Aussie Broadband rallied 14.8 per cent after agreeing to acquire AGL’s telecommunications business and customer assets. Contact Energy added 5.8 per cent, while Origin Energy and APA Group posted smaller gains.
AGL Energy shares jumped nearly 12 per cent after beating interim earnings expectations. [Picture: AGL]
Energy stocks traded near flat overall, as modest gains in oil and gas producers offset weakness in coal miners. However, utilities remained one of the session’s stronger performers.
Investors are awaiting interim results from Origin Energy, South32, Northern Star, Paladin Energy, IAG, and AMP. ASX Ltd is also scheduled to release financials following its announcement that CEO Helen Lofthouse will step down in May.
Healthcare Sector Weighs on Market
Healthcare was the only major sector to post sharp losses. CSL shares fell 4.6 per cent, sliding to an eight-year low.
The biotechnology group reported $1.1 billion in impairments and is now trading at its lowest price-to-earnings ratio since 2012. The decline contributed to a 2.9 per cent drop in the healthcare index.
The sell-off in CSL contrasted with broader market strength. While most sectors benefited from earnings momentum, healthcare lagged due to Company-specific pressures.
Australian Dollar Climbs Above US71 Cents
The Australian dollar strengthened above 71 US cents for the first time since January 2023. It traded around 71.16 US cents, up from 70.71 US cents earlier in the week.
The Australian dollar traded above 71 US cents for the first time since January 2023. [Source: X]
Currency gains were supported by firmer commodity prices and expectations of a higher local interest rate outlook. The stronger dollar coincided with record highs on Wall Street, where the Dow Jones closed at a new peak overnight.
The local currency also traded at 108.87 Japanese yen, 59.70 euro cents, and 52.05 British pence. Market participants continue to monitor global rate trends and commodity movements for further direction.
As earnings season progresses, banking and mining stocks remain central to market performance. With the ASX approaching record levels, investor focus now turns to upcoming corporate results and global economic data.
FAQs
Q: Why did the ASX 200 rise to a three-month high?
A: The ASX 200 rose after major banks and mining Companies reported stronger-than-expected earnings. Commonwealth Bank posted a record $5.45 billion first-half cash profit, while ANZ reported a $1.94 billion quarterly profit. Gains in materials stocks also supported the index.
Q: How close is the ASX 200 to its record high?
A: The ASX 200 briefly touched 9,100 points and is nearing its intraday record of 9,115.2. It is also close to surpassing the record closing level of 9,094.7 set in October 2025.
Q: Which banks led the ASX rally?
A: Commonwealth Bank led the rally after announcing record earnings and a higher interim dividend. ANZ shares surged 10 per cent following its quarterly result. NAB and Westpac also posted strong gains.
Q: Why did mining stocks perform strongly?
A: Mining stocks gained as gold prices traded above $US5,000 per ounce and commodity prices improved. Evolution Mining rose to a record high after announcing a 20-cent interim dividend and a $120 million expansion deal.
Q: What happened to CSL shares?
A: CSL shares fell 4.6 per cent after the Company reported $1.1 billion in impairments. The decline pushed the healthcare sector lower and marked CSL’s lowest price-to-earnings ratio since 2012.
Q: Why did the Australian dollar rise above 71 US cents?
A: The Australian dollar strengthened due to firmer commodity prices and expectations of a higher local interest rate outlook. It traded above 71 US cents for the first time since January 2023.
