Australian shares end flat as miners offset gains in banks

By Keshav SinghChundawat

Sept 21 (Reuters) - Australian shares ended little changed on Monday as gains in financials offset losses in commodity stocks, while expectations of a central bank rate hike next week kept investors cautious.

The S&P/ASX 200 .AXJO ended flat at 8,731.90 points, after also closing little changed on Friday and losing 0.1% for the week.

Michele Bullock, Governor of the Reserve Bank of Australia, on Friday warned that upside risks to inflation are materialising from higher oil prices and the AI boom.

All the big four banks now expect the central bank to hike early next week as Commonwealth Bank of Australia CBA.AX and ANZ ANZ.AX changed their forecasts. ANZ is pencilling in another hike in November.

The RBA will hike interest rate because of oil, sticky services inflation and Bullock's own language, said Mark Gardner, founder and CEO of MPC Markets.

"Our bias is still sticky, not cooling inflation, however, supply-side inflation (not demand-driven inflation) could cool the economy for the RBA,"

Swaps imply a 96% chance of a fourth hawkish move by the RBA this year to 4.6% at its meeting next week. 0#AUDIRPR

Financials .AXFJ gained 0.6% with all the 'Big Four' banks advancing between 0.4% and 0.9%.

"Financials are catching a bid because the hike's now consensus, and a first hike still reads as a net-interest-margin gift," Gardner added.

Healthcare stocks .AXHJ stocks climbed 0.5% with Cochlear COH.AX and CSL CSL.AX closing 5.3% and 1.5% higher, respectively.

Meanwhile, Telix Pharmaceuticals TLX.AX dropped 11.7% to log its weakest session since late-August 2025, after it agreed to buy Germany-based ITM Isotope Technologies Munich SE for about $1.65 billion.

Energy stocks .AXEJ rose 0.5% as Brent crude stayed above $100 a barrel, despite falling nearly 2% on hopes for diplomacy in the Iran war. O/R

Miners .AXMM fell 0.7%, with Rio Tinto RIO.AX and BHP Group BHP.AX down 0.8% and 0.4%, respectively.

Gold stocks .AXGD slid 0.7% on softer bullion prices. GOL/

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.6% to 13,821.20 points, its highest since September 10.