The Australian share market concluded a tumultuous year with minimal movement, as the S&P/ASX 200 index fell by just 2.8 points, or 0.03 percent, finishing at 8,714.3 on the last trading day of 2025. This lackluster performance followed a period of significant fluctuations, including a dip of nearly 13 percent from January to April, spurred by US tariff announcements that dampened global growth expectations.
Sector Performance Highlights
Throughout the trading day, energy, materials, and information technology stocks recorded modest increases, ranging from 0.5 to 0.8 percent. A notable rebound in metals prices contributed to the gains in the materials sector. Gold, silver, and platinum saw recovery after earlier profit-taking, with gold trading around $4,345 (approximately $6,490) per ounce. Major gold producers, such as Northern Star and Evolution Mining, benefited from this rise, with their shares increasing by 1.7 percent and 1 percent, respectively.
Despite the positive movements in some sectors, the financial sector struggled, losing 0.4 percent. Commonwealth Bank shares closed at $160.57, reflecting concerns about valuation despite the bank achieving multiple record profits during the year. Overall, the financial sector managed a 7.8 percent increase for the year, showcasing resilience even in challenging market conditions.
Energy stocks also experienced a boost, gaining nearly 0.8 percent on the last trading day, driven by stronger oil prices. However, the energy sector faced challenges over the past year, with a contraction of 2.3 percent since January, reflecting ongoing worries about a potential supply glut.
Yearly Trends and Notable Performers
The healthcare sector had a particularly tough year, experiencing a decline of almost 25 percent. This downturn was largely attributed to the impact of US pharmaceutical tariffs and skepticism surrounding vaccines. The sector’s heavy hitter, CSL, saw a staggering 38 percent drop in value.
In contrast, defense technology firm Droneshield emerged as one of the standout performers of 2025, concluding the year with a remarkable 300 percent increase in share price. However, its closing value remains less than half of its peak price of $6.71 reached in October. 4D Medical, a supplier of imaging software and hardware, recorded an astonishing 718 percent growth over the year.
On the other end of the spectrum, Telix Pharmaceuticals and Treasury Wine Estates struggled, with both companies experiencing declines of approximately 54 percent. Telix faced challenges related to US regulatory changes, while Treasury Wine Estates restructured to pivot towards luxury offerings in response to shifting consumer preferences.
As the year concluded, the Australian dollar traded at 66.95 US cents, a slight decrease from 67.14 US cents earlier in the week. This figure still represents an improvement of about five US cents compared to the same day in 2024.
The Australian share market’s performance in 2025 reflects a complex interplay of global economic factors, investor sentiment, and sector-specific challenges. As investors look to the future, the hope remains for a more stable and prosperous market in the year ahead.
