Key Momentum Shifts

  • Utilities Moves into Weakening: Utilities (XUJ) has crossed below the horizontal midpoint and moved from Leading into Weakening, indicating deteriorating relative momentum.
  • Technology Remains Improving: Information Technology (XIJ) continues to occupy Improving after its recent recovery from Lagging.
  • Leading Group Contracts: Industrials (XNJ), Communication Services (XTJ) and Financials (XFJ) remain in Leading.
  • Consumer Discretionary and Real Estate Improve: Consumer Discretionary (XDJ) and Real Estate (XPJ) remain positioned in Improving.
  • Four Sectors in Weakening: Utilities (XUJ), Consumer Staples (XSJ), Health Care (XHJ) and Energy (XEJ) are now positioned in Weakening.
  • Materials and Resources Lag: Materials (XMJ) and Resources (XJR) remain firmly in the Lagging quadrant.
  • Defensive Strength in Daily Performance: Consumer Staples gained 0.73%, recording the strongest daily performance despite remaining in Weakening.
  • Technology Under Pressure: Information Technology declined 1.66%, yet its broader RRG position remains in Improving.

The latest Relative Rotation Graph for 25 September 2026 shows continued divergence across ASX sector momentum. Industrials, Communication Services and Financials occupy Leading, while Consumer Discretionary, Real Estate and Information Technology remain in Improving. Utilities has now moved into Weakening alongside Consumer Staples, Health Care and Energy, while Materials and Resources remain in Lagging.

The chart demonstrates the important distinction between short-term price performance and broader relative momentum. Consumer Staples recorded the strongest daily gain of 0.73%, yet remains in Weakening, while Information Technology suffered the largest daily decline at 1.66%.

Momentum Breakdown by Quadrant

ASX Sector Relative Momentum Chart (at the closing price of 25/09/2026). Powered by: amibroker.com.

Leading Quadrant

Industrials (XNJ), Communication Services (XTJ) and Financials (XFJ) remain in the Leading quadrant. Their positions above the horizontal midpoint and to the right of the vertical axis indicate relatively stronger momentum and relative strength.

Financials gained 0.27% during the session, making it one of only two sectors to record a positive daily return. Major Australian banks remained comparatively resilient as investors focused on the possibility of another RBA rate increase.

Industrials declined 0.87%, while Communication Services fell 0.79%. Despite these negative daily performances, both sectors remain in Leading, demonstrating that the RRG measures broader relative momentum rather than simply the latest daily return.

The trajectories of all three Leading sectors are important. Continued movement downward could eventually signal a transition toward Weakening if relative momentum deteriorates further.

Improving Quadrant

Consumer Discretionary (XDJ), Real Estate (XPJ) and Information Technology (XIJ) remain positioned in Improving.

Consumer Discretionary declined 1.36%, while Real Estate fell 0.33%. Despite the negative daily performances, their positions in the upper-left portion of the chart indicate improving relative momentum while relative strength remains below the Leading area.

Information Technology represents an important divergence between daily performance and RRG positioning. XIJ fell 1.66%, the weakest daily performance among the twelve sectors, as technology and wealth-platform stocks came under heavy selling pressure.

Nevertheless, XIJ remains in Improving following its previous movement out of Lagging. Continued upward movement toward the centre and then into the upper-right quadrant would provide stronger evidence of improving relative strength.

Weakening Quadrant

Utilities (XUJ), Consumer Staples (XSJ), Health Care (XHJ) and Energy (XEJ) are positioned in the Weakening quadrant.

The most notable change is Utilities, which has now crossed below the horizontal midpoint and entered Weakening. XUJ declined 1.25% on 25 September, making it the third-worst-performing sector during the session. Higher bond yields and renewed interest-rate concerns created pressure on yield-sensitive utilities.

Consumer Staples gained 0.73%, making it the strongest-performing sector, but its RRG position remains in Weakening. This highlights how daily gains do not necessarily indicate an improvement in broader relative momentum.

Energy declined 0.30%, despite elevated oil prices remaining a supportive fundamental backdrop. The sector therefore continues to illustrate the difference between Commodity strength and relative Equity momentum.

Health Care also remains in Weakening after declining 0.80%. A move upward toward the horizontal axis would be required to signal an improvement in momentum.

Lagging Quadrant

Materials (XMJ) and Resources (XJR) remain in Lagging. Materials declined 0.84%, while Resources fell 0.69%.

Weakness across mining-related stocks continued to weigh on both sectors, with commodity-related equities remaining under pressure.

Both sectors remain in the lower-left portion of the RRG, indicating weak relative momentum and relative strength. A sustained movement upward and toward the centre of the chart would be required before a transition into Improving could be confirmed.

Bottom Line

The 25 September 2026 ASX Relative Rotation Graph shows continued sector rotation and significant divergence in relative momentum. Industrials, Communication Services and Financials remain in Leading, while Consumer Discretionary, Real Estate and Information Technology occupy Improving.

Utilities has now moved into Weakening, joining Consumer Staples, Health Care and Energy. This is the most notable quadrant change on the latest chart. Meanwhile, Materials and Resources remain in Lagging.

The contrast between daily performance and RRG positioning remains significant. Consumer Staples delivered the strongest daily gain but remains in Weakening, while Information Technology recorded the largest decline but continues to sit in Improving. Overall, the latest RRG indicates that sector Leadership remains fluid, with the trajectories of the Leading and Improving groups warranting close attention.