In spite of what was a year of widespread economic uncertainty, paved with worries over US tariff policies and rising geopolitical tensions, the S&P/ASX 200 Index closed FY24–25 at 8,542.3 points, delivering a return of 9.97 per cent over the period.
The index experienced a 52-week range between 7,169.2 and 8,639.1 points, emphasising both resilience in the market and volatility during a year which saw new heights along with its fair share of downturns.
According to the Australian Shareholders’ Association (ASA), the year’s performance underscores the value of disciplined long-term investing for everyday Australians, with dividends further boosting investor returns.
“This performance came despite renewed global uncertainty, including revived US tariff rhetoric and broader geopolitical tensions,” said Rachel Waterhouse, CEO of ASA. “For everyday investors, total returns may have been even stronger when dividends are included, highlighting the importance of having a plan, staying diversified and remaining focused on long-term goals rather than reacting to short-term noise.”
Financials led gains on the ASX over the course of the financial year as bank valuations surged, with Commonwealth Bank breaking the $300 billion mark despite macro challenges like rising loan defaults. Additionally, technology stocks soared, with WiseTech Global and Xero benefiting from global demand for digitisation and automation.
Industrials also posted solid returns, reflecting the sector’s resilience and increased demand for transportation and infrastructure services with government spending in areas such as construction and logistics playing a key role in underpinning this strength.
In contrast, the energy sector faced considerable volatility amid fluctuating oil prices, geopolitical tensions and tightening regulatory requirements, creating headwinds for traditional energy producers, resulting in uneven performance.
Similarly, the materials sector struggled under the pressure of softer commodity prices and weakening demand from key trading partners, particularly China, with major mining companies including Rio Tinto, BHP, and Fortescue Metals Group recording declines.
Healthcare stocks were not immune to broader market volatility, with performance further dampened by regulatory pressures and evolving healthcare policies.
Among the top performers were Austal, on the back of defence contracts; Regis Resources and Genesis Minerals, supported by gold tailwinds; and Sigma Healthcare, which benefited from its merger with Chemist Warehouse.
On the downside, falling lithium and iron ore prices dragged down Pilbara Minerals and Mineral Resources, with governance concerns also hitting the latter. Domino’s Pizza disappointed amid execution missteps, while Reece faced demand softness due to a sluggish housing sector.
