The stock of the Bank of Australia is rising, driven by disappointing performances in other sectors.

The Jarden analyst report stated that the rise in Australian bank stock prices is being driven by disappointing performances in other sectors, rather than the banks' own performance and prospects. They believe that machine-driven capital flows are the driving force behind the recent rebound, pushing the stock prices of the country's four major banks up by 6.5% to 19% so far this month. These Jarden analysts point out that the sector's valuation multiples are currently at levels equivalent to earnings of 20 to 28 times, far above the long-term average of 12 times. They added that this brings significant risks.