UPDATE: The Australian Securities Exchange (ASX) closed down 27.2 points today, finishing at 8,735.50, marking a significant drop below its 125-day moving average. This downturn was driven by a sharp decline in technology and energy stocks, signaling a tumultuous trading day as the final week of trading for 2025 unfolds.
Monday’s trading started with a fleeting rally in mining stocks, but the momentum quickly evaporated as energy shares plummeted. Despite escalating oil prices due to rising tensions in the Middle East, major players like Santos and Beach Energy saw their stocks fall by 1.5% and 1.3%, respectively. Woodside Energy managed to remain stable, even while announcing a significant nine-year LNG supply agreement with Turkey’s state-owned BOTAS, set to kick off in 2030.
In the tech sector, NextDC dropped more than 2%, while DroneShield faced a nearly 5% decline. Earlier, miners such as Rio Tinto hit an all-time high with copper prices soaring, but ultimately closed down 0.5%. BHP followed suit, finishing the day down 0.4%.
However, it wasn’t all bad news. Silver prices surged past $80 an ounce, the highest recorded to date. This spike, spurred by global supply shortages and the recent US designation of silver as a critical mineral, led to dramatic gains for silver miners. Investigator Silver skyrocketed by 36.4%, while Silver Mines and Sun Silver increased by 18.4% and 14.5%, respectively.
In contrast, gold mining stocks suffered losses amid political developments. Following a meeting between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy, both leaders expressed optimism about nearing a peace deal with Russia. The anticipation of reduced conflict prompted investors to offload gold, causing Northern Star to drop by 0.7%. St Barbara also experienced a decline, closing 0.8% down, although Evolution Mining managed a 0.5% increase.
On the corporate front, Star Entertainment and buy-now-pay-later firm Zip were among the few gainers, rising 7.7% and 2.2%, respectively. Star’s growth followed the recent appointment of Bruce Mathieson Jr as CEO, amidst significant upheaval in the company’s leadership.
The big four banks had a mixed performance today, with ANZ edging up 0.3%, while National Australia Bank fell 0.6% and both Westpac and Commonwealth Bank dropped 0.5%. Meanwhile, the Australian dollar reached a 14-month high of US67.27 cents.
As the trading week progresses, investors will be closely monitoring ongoing geopolitical developments and their impact on markets. The volatility seen today underscores the unpredictable nature of trading as we approach the year’s close.
