Materials sector shines as ASX ekes out gains amid quiet trading

Rising materials stocks and a small gain from the banking sector helped lift the ASX during a quiet day of trading.

The benchmark ASX 200 added 16.20 points, or 0.19 per cent, to 8634.60, while the broader All Ordinaries finished up 19.40 points, or 0.22 per cent, to 8926.10.

The Aussie dollar also added 0.24 per cent to end the trading day, buying 66.20 US cents.

It was a mixed day of trading, with gains from the materials, financials and technology companies offset by falling consumer discretionary and energy stocks.

Overall, five of the 11 sectors traded higher.

BHP added 0.76 per cent to $44.84, Fortescue shot up 2.22 per cent to $22.11 and Rio Tinto fell 1.50 per cent to $138.47 after trading at a record high on Thursday.

Lithium shares were also among the major winners on a positive UBS outlook.

IGO shares surged 7.11 per cent to $6.93, Mineral Resources jumped 4.61 per cent to $50.15 and Liontown Resources leapt 4.76 per cent to $1.32.

The big four banks also gained with Commonwealth Bank up 0.7 per cent to $154.21, Westpac advanced 1.1 per cent to $38.09, National Australia Bank nudged up 0.9 per cent to $40.86 and ANZ was flat at $35.33.

Technology stocks were also in the green led by Life360 which leapt 3.88 per cent to $39.34, while NextDC jumped 3.13 per cent to $13.86 and Codan added 1.51 per cent to $30.97.

Australia’s slow trading day was in line with global markets, with Capital.com senior financial market analyst Kyle Rodda saying stocks were in a holding pattern ahead of the US Federal Reserve’s call on whether to lower interest rates.

“Price action is choppy and there remains a modest bullish bias … the odds of a cut next week remain around 90 per cent and at levels that make it very difficult for the Fed not to lower rates from here,” Mr Rodda said.

“Stocks are waiting for that confirmation before pushing higher.”

While US money markets are still predicting a rate cut, stronger than expected employment figures, has cast doubt about the urgency of future rate cuts.

Premier Investment shares were smashed on Friday, down 15.87 per cent to $15.22 after billionaire chair Solomon Lew told shareholders discretionary spending remains under pressure, although pointed to “encouraging early signs” post Black Friday.

Premier Investments issued first-half 2026 guidance of $120m, which was slightly below forecasts.

Shares in medical device maker Saluda Medical sank 52 per cent to $1.34 on its listing to be one of the worst ASX debuts in decades.

AGL shares slipped 0.84 per cent to $9.39 after the energy giant aborted a proposal to build huge wind turbines off the Victorian coast.

Gold miner Northern Star added 0.92 per cent to $26.33 after telling the market it was actively exploring for new gold mines across Western Australia.