SYDNEY, Jan 16, 2026, 17:24 AEDT — The market has closed.
- NAB shares closed up, riding the wave of gains that lifted Australian banks and the broader market.
- Traders are focused on rate expectations ahead of the Reserve Bank’s upcoming decision.
- Attention is returning to NAB’s funding and housing signals as its February update approaches.
National Australia Bank Limited shares ended Friday 0.73% higher at A$42.67, capping off a stronger week for the stock. (MarketScreener UK)
The S&P/ASX 200 climbed 0.48% to 8,903.9, led by a 1% gain in financials, while the earlier momentum in materials stocks eased off near the close. (CommBank)
Why it matters now: Big banks have driven much of the index’s recent gains, and shifting rate expectations are once again influencing their earnings and valuations. The Reserve Bank of Australia’s cash rate currently stands at 3.60%, with its next policy decision scheduled for Feb. 3. (Reserve Bank of Australia)
In the previous session, NAB climbed 1.1%, rebounding after an early drop, as other major banks also gained. Investors shifted sharply into resources, reports The Inside Adviser. (The Inside Adviser)
UBS Investment Bank has issued a pre-stabilisation notice for National Australia Bank’s upcoming euro benchmark subordinated fixed reset notes due January 2036. The planned stabilisation period runs from Jan. 15 through Feb. 25 at the latest. These Tier 2 notes are subordinated debt that count toward regulatory capital buffers. The notice cautions that “there is no assurance” the stabilisation will actually take place. (Investegate)
NAB’s economics team, in their January 2026 Housing Monitor, highlighted an 8.2% increase in combined-capital dwelling prices throughout 2025 alongside a tight rental market. Advertised rents jumped 5.9% on a six-month annualised basis in December, with vacancy rates hovering near 1.6%. The report also noted that new housing loan commitments rose 13% in the year to the September quarter, while mortgage rates dropped roughly 80 basis points since early 2024 — one basis point equals one-hundredth of a percentage point. (NAB)
NAB chief executive Andrew Irvine offered a measured outlook on the economy this week, saying in a bank publication: “The economy has room to grow; but the challenge is that we don’t have any excess capacity.” (NAB News)
Bank shares could swing sharply if the rates narrative changes again. A hawkish pivot from the RBA, a slowdown in housing, or a jump in wholesale funding costs might tighten margins and put credit quality under pressure.
Traders in Australia will eye rate shifts, currency swings, and commodity prices on Monday for hints of sector rotation, following banks’ weekend rally to the front.
NAB’s first-quarter trading update is set for Feb. 18, as outlined in its financial calendar. (NAB)
