S&P/ASX 200 drops as Australian shares edge lower, miners fall; RBA rate hike fears grow amid Middle East conflict-driven inflation concerns

Australian Sharemarket: The S&P/ASX 200 ended the week with a drop as Australian shares ended slightly lower on Friday (March 13, 2026). This came as losses in miners outweighed gains in financials, while the Middle East conflict stoked inflation concerns and lifted expectations of a central bank rate hike next week.

The benchmark S&P/ASX 200 closed lower Friday, dropping 11.90 points or 0.14% to 8,617.10. According to news agency Reuters, it dropped 6.3% so far in March, setting it up for its worst month since September 2022. The bottom-performing stocks in this index were NORTHERN STAR RESOURCES LTD and IPERIONX LIMITED, down 18.75% and 14.05%, respectively. Over the last five days, the index has lost 2.64% and 11.20% over the last 52 weeks.

S&P/ASX 200: Top gainers and losers

On the S&P/ASX 200, several companies recorded notable gains. DroneShield Limited (DRO) rose to $4.170, up $0.250, or 6.377 per cent. Dalrymple Bay Infrastructure Limited (DBI) increased to $4.930, gaining $0.280, or 6.021 per cent. NIB Holdings Limited (NHF) climbed to $6.140, up $0.330, or 5.679 per cent. Yancoal Australia Limited (YAL) rose to $8.060, gaining $0.350 or 4.539 per cent, while Fortescue Ltd (FMG) reached $20.480 after rising $0.800 or 4.065 per cent.

Meanwhile, several companies posted declines. Northern Star Resources Ltd (NST) fell to $21.750, down $5.020, or 18.753 per cent. IperionX Limited (IPX) dropped to $5.260, declining $0.860, or 14.053 per cent. Karoon Energy Ltd (KAR) slipped to $1.840, down $0.140 or 7.071 percent. Genesis Minerals Limited (GMD) decreased to $6.260, falling $0.400, or 6.006 per cent, while Pantoro Gold Limited (PNR) declined to $3.460 after dropping $0.220, or 5.979 per cent.

S&P/ASX 200: Top-performing sectors

Six of 11 sectors ended higher despite the decline in the S&P/ASX 200 Index. Financial was the best-performing sector, gaining +1.03% and rebounding from its recent decline. This sector is off -0.37% for the past five days. Inflation concerns reversed bets for a rate hike by the Reserve Bank of Australia at ⁠its policy ‌board meeting on March 17. All "Big Four" banks expect a rate hike by the RBA to 4.1% on Tuesday and further to 4.35% ⁠in May. Markets imply nearly an 80% chance of a hike next week and are fully priced for 4.35% by August.

Financials gained 1% in the session but ended the week down 0.4%. All four major banks ‌rose between 0.5% and 1.5%. Virgin Australia and Qantas Airways have both fallen a little over 13% in March so far as jet fuel prices surged after the ⁠conflict began.

Miners declined 2.1% in the session, taking weekly losses to 4.4%. Gold producer Northern Star Resources slumped 18.8% after warning it may struggle to meet the lower end of its fiscal 2026 production guidance. Technology, gold and healthcare stocks fell between 4.6% and 9.7% during the week.