Australian shares edged higher on Monday boosted by banks and technology stocks, while a commodity drag capped gains on the benchmark index as cautious investors looked for cues in a high-cash rate environment.

The S&P/ASX 200 index rose 0.4% to 7,389.0 by 0036 GMT.

The benchmark posted a 2% weekly gain on Friday. Local financial stocks rose 1.2% as lenders continue to enjoy a higher interest rate environment.

All of the “Big Four” banks traded between 0.8% and 1.6%. Tech stocks also gained 0.6%, with ASX-listed shares of Megaport and Xero rising 2.6% and 1.2%, respectively. Energy companies fell 0.2%, even as oil prices firmed.

Health and real estate stocks also tracked the broader index.

They were up 0.4% and 0.9%, respectively. Gold stocks were among the top losers after bullion prices retreated on Friday due to a stronger dollar and fears over continued interest rate hikes.

The sub-index lost over 3.0%. Index majors Newcrest Mining and Northern Star Resources fell between 3.0% and 2.8%. Miners lost 1.0% as iron-ore prices extended losses on Friday, reflecting concerns regarding China demand.

Australian shares inch higher as gold and tech stocks advance

Mining giants BHP Group, Rio Tinto and Fortescue Metals Group all were in the red, dropping between 1.0% and 1.5%.

Among individual stocks, digital payments solutions provider EML Payments jumped 7.0% after a change in management amid turmoil.

Lake Resources emerged as the top gainer in the benchmark, rising 6.5%.

The lithium developer, along with partner Lilac Solutions, said that 2,500kg of lithium carbonate equivalents have been produced at the Project Kachi plant in Argentina.

New Zealand’s benchmark S&P/NZX 50 index rose 0.1% to 11,893.3.