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IBISWorld forecasts the All Ordinaries index to strengthen by 6.7% during 2026-27, to average 9,641.3 index points. Growing total business profit figures has supported the value of the index in the current year. Around 20.0% of the index comprises mining and resource companies. Rising prices and demand for commodities like gold, oil and copper are set to bolster the performance of the sharemarket, 20.0% of which comprises mining and resource stocks. However, on the downside, the banks and other financial stocks face rising net interest margin pressure, which is likely to place downward pressure on these valuations.Beginning in early 2020, the RBA began cutting rates to record low levels to encourage borrowing and investment in Australian business. These low rates benefited the All Ordinaries index, which rose alongside rising stock valuations. While the cash rate was lifted in late 2021-22 and into 2022-23, subduing access to low-cost funds, robust growth across the technology sector supported further growth in the index. The All Ordinaries index dropped in 2022-23, as negative business confidence and consecutive interest rate hikes weighed on business expansionary activities. Since then, the index has grown strongly, due to rising commodity prices and business profit. AI and defence technology companies helped drive a bounce-back in 2023-24, along with rising prices for key commodities like gold and copper.Cuts to the cash rate from 4.35% to 3.6% through 2025 have led to business expansion and increased investment in equities, resulting in growth in the index. Furthermore, strong earnings performance across the board has driven index growth. In particular, the index has a strong concentration in banking and mining, which has meant that growth in commodity prices like iron ore, coal, gold and natural gas has supported ASX-listed companies in the index, while simultaneously, swelling property prices have been benefiting the banking sector, improving their top-line revenue and pushing up valuations, in turn supporting All Ordinaries value. Overall, IBISWorld forecasts the All Ordinaries index to rise at a compound annual rate of 5.0% over the five years through 2026-27.