The Australian share market, as represented by the S&P/ASX 200 Index, recorded modest gains during its initial trading days of 2026, following a slight decline at the close of 2025. The index closed at 8727.8 points on the first trading day of 2026 and further increased to 8728 points on the subsequent trading day. These movements occurred amidst varied sectoral performance, influenced by shifts in global commodity prices and international market activity.
ASX 200 Performance Overview
The S&P/ASX 200 Index concluded the last trading day of 2025 (a Wednesday) at 8714.3 points. After being closed for New Year's Day, the market reopened on Friday, January 2, 2026, marking the first trading day of the new year. On this day, the index closed at 8727.8 points, registering a gain of 13.5 points (0.2%). Trading on Monday, January 5, 2026, saw the index close marginally higher at 8728 points, an increase of 0.8 points (0.01%).
Global Market Influences
Prior to the Australian market's 2026 opening, United States markets experienced declines on New Year's Eve. The Dow Jones decreased by 0.6%, while both the S&P 500 and Nasdaq fell by 0.75%. This global market performance was noted as a potential influence on the Australian share market's projected flat opening for Friday.
Sectoral Analysis
Sectoral performance across the trading days was varied:
- Energy Sector:
- On Friday, the energy sector registered gains, with crude oil prices rising to US$57.5 per barrel. Woodside Energy Group Ltd (ASX: WDS) shares increased by 0.3%.
- However, on Monday, the broader energy sector displayed a mixed trend. Oil and gas companies experienced declines, with Woodside shares decreasing by 1.4%, Santos Ltd (ASX: STO) falling by 1.2%, and Ampol dipping 0.2%. These declines followed initial drops in oil prices over the weekend, linked to US actions in Venezuela.
- Oil prices on Wednesday had seen WTI crude oil fall 0.9% to US$57.42 per barrel and Brent crude oil decrease 0.8% to US$60.85 per barrel. Crude oil prices have decreased by 1.9% over the past month and were 21.4% lower compared to the same period last year, marking their worst annual performance since 2020.
- Mining Sector:
- NYSE-listed shares of BHP Group Ltd (ASX: BHP) were down 0.9% and Rio Tinto Ltd (ASX: RIO) shares were down 0.6% on Wednesday night. Both companies, however, recorded gains for the year 2025.
- On Monday, uranium mining companies registered gains. Paladin shares increased by 7.1%, and NexGen shares rose by 8.3%. These gains align with current uranium prices, which are influenced by increased demand for nuclear energy, including from the data center industry.
- Gold Sector:
- The gold futures price decreased by 1% to US$4,341.1 an ounce on Wednesday. This movement occurred after CME raised its precious metals futures margins. Despite this decline, the gold price recorded an annual gain exceeding 60% for 2025.
- Technology Sector:
- Weakness in the US technology sector on New Year's Eve, which saw Life360 Inc.'s (ASX: 360) NASDAQ-listed shares fall nearly 4%, was noted. Despite this, Life360 shares recorded an approximate gain of 50% for 2025.
- On Friday, the technology sector experienced declines in Australia.
- Other Sectors:
- The banking sector registered gains on Friday.
- Utility companies experienced declines on Friday.
Other Market Indicators
The Australian dollar strengthened on Friday, trading above US67 cents during the session.