Australian tech sector sees fund buying after 40% slump, with Xero and REA Group in focus

Institutional investors are rotating back into Australian technology names after a year-long bear market, signaling a potential bottom for the battered sector.

By Handelsavisen Newsroom · Automated 2026-06-23 10:03 UTC · 1 min read

Fund managers are returning to the Australian technology sector, which has endured a 40% decline over the past 12 months, as valuations begin to attract fresh capital.

Evans & Partners purchased AUD 10 million worth of Xero shares this month, marking a notable shift in sentiment for the heavily sold-down group.

The move reflects a broader view among some asset allocators that the sector has "become interesting again" after months of underperformance.

The buying interest is concentrated in large-cap software and digital platform names, with Xero (XRO.AX) and REA Group (REA.AX) cited as primary targets.

TechnologyOne (TNE.AX) is also drawing attention from investors seeking exposure to the recovery.

This institutional re-engagement suggests that the worst of the selling pressure may be easing, at least for the most resilient names in the index.