The Australian share market commenced the first trading day of 2026 on a subdued note, with heavyweight mining and gold stocks acting as a drag. The benchmark S&P/ASX 200 index edged down by 0.1% to settle at 8,703.4 points by 2346 GMT on Friday, January 2. This muted start followed a strong performance in 2025, where the index closed nearly 7% higher, marking its third consecutive annual gain.
Northern Star Forecast Cut Triggers Sharp Sell-Off
The most significant mover on the benchmark was Northern Star Resources, which plunged by 8.2%. This represented its most substantial single-day drop since October 22. The sharp decline came immediately after the prominent gold explorer announced a downgrade to its annual gold production forecast, unsettling investors.
The negative sentiment around Northern Star spilled over to the broader gold sector. Stocks linked to the precious metal collectively slipped by 1.9% on the day and were headed for their worst weekly performance since the period ending November 21.
Mixed Fortunes for Miners and Tech Sector
The broader mining sector faced headwinds, losing 0.3% overall. This decline occurred despite modest gains from industry giants; BHP inched up 0.1%, while Rio Tinto advanced 0.6%. The weakness was partly attributed to falling iron ore prices in the final trading session of 2025, driven by softening steel demand. However, for the full year 2025, iron ore had notched gains, primarily supported by robust demand from the top consumer, China.
Technology stocks also mirrored a downward trend, sliding 1% as they tracked losses from their Wall Street counterparts earlier in the week. Notable decliners in this space included accounting software firm Xero, which fell 1.3%, while WiseTech Global and NEXTDC dipped 0.4% and 0.5%, respectively.
Bright Spot: Nickel Industries Surges on Major Deal
Amid the general weakness, Nickel Industries emerged as the standout performer on the ASX 200, soaring by 7.8%. The stock recorded its biggest intraday jump in nearly three months. The rally was triggered by the company's announcement that South Korean special alloy supplier, Sphere Corp, would acquire a 10% stake in the Excelsior Nickel Cobalt HPAL project located in Indonesia. The deal values the project at a substantial $2.4 billion.
In a related development, markets in New Zealand remained closed for a public holiday. The country's S&P/NZX 50 index had risen by 3.3% over the course of 2025, also securing its third straight annual gain.
