By Rachel Waterhouse, CEO, Australian Shareholders’ Association
The S&P/ASX 200 ended 2025 higher, up 6.80% (price return, dividends excluded) to 8,714.3. The headline gain, however, masks a year of sharp sector divergence and noticeable rotation in leadership.
In the first half of 2025, the ASX 200 rose 4.7%, led by Financials (10.6%), Industrials (8.8%) and Communication Services (13.9%). In the second half, the index added about 2.0%, but the leadership changed. Materials rose 33.9% in 2H25, while Information Technology fell 25.4% and Health Care fell 19.0%.
For the full year, Materials was the best performing sector (31.71%) and Health Care the weakest (minus 24.91%). It was a reminder that the index can rise while many portfolios feel very different.
Confidence is steady, expectations are not.
ASA’s December 2025 Investor Sentiment Survey shows investors are entering 2026 with broadly steady confidence:
- About the same: 76.61%
- More confident: 12.10%
- Less confident: 11.29%
The stronger message was what investors want ASX 200 boards to do better in 2026:
- Remuneration that aligns with realised performance: 37.90%
- Better capital allocation discipline: 19.35%
- Board effectiveness: 17.74%
- Stronger accountability: 16.94%
- Clearer disclosure and transparency: 8.06%
Retail investors are not asking for perfection. They are asking for discipline: pay outcomes that reflect realised performance, and capital allocation decisions that protect and build shareholder value.
What investors are watching in 2026
Common themes raised by respondents included rates and inflation, global and US political and market risks, governance and disclosure standards, resources and commodity volatility, and the AI and tech cycle.
Top and bottom performers in 2025 (ASX 200)
Top 5 performers
- Liontown Resources (LTR) +198%
- Genesis Minerals (GMD) +194%
- Catalyst Metals (CYL) +186%
- Evolution Mining (EVN) +163%
- Newmont Corp (NEM) +150%
Bottom 5 performers
- HMC Capital (HMC) -59%
- IDP Education (IEL) -54%
- Treasury Wine Estates (TWE) -53%
- Telix Pharmaceuticals (TLX) -53%
- Guzman y Gomez (GYG) -47%
General information only. This article does not constitute personal financial advice.
