Australia shares edge higher on boost from miners, gold rally

Australian shares edged up on Monday, with mining and gold stocks extending gains to scale record highs, tracking a rally in commodity prices, which overshadowed losses in energy stocks.

The S&P/ASX 200 index rose 0.2% to 8,777.90 by 2319 GMT.

The benchmark fell 0.4% on Wednesday, December 24, before markets closed for the Christmas and Boxing Day holidays.

Mining stocks rose 1.1% to a record high, as copper prices hit an all-time high and iron ore prices climbed on Friday.

Iron ore major Rio Tinto rose 0.7% after briefly touching another record high. The Anglo-Australian miner has been looking towards shifting its focus to its copper business to capitalize on record-high prices amid a green energy transition.

The sub-index was aided by gold stocks climbing to a record high, tracking bullion’s persistent rally.

Gold producers Northern Star Resources and Evolution Mining jumped 1.4% and 1.3%, respectively.

Miners have risen nearly 42% so far this year, outperforming the broader benchmark’s 7.6% climb, helped by strong commodity prices and rotation from expensive bank stocks.

Financials fell marginally on the day, with one of the “big four” lenders, Westpac, down 0.6%.

The sub-index has notched weekly gains for the last five consecutive weeks.

Valuation concerns lingered through the year, as Australian banks boast some of the richest multiples compared to their peers in developed countries.

The sub-index has gained 8.5% so far this year, compared to a more than 28% climb in 2024.

Meanwhile, energy stocks lost 0.5%, tracking a drop in oil prices on Friday as investors weighed a looming supply glut of the commodity.

Oil and gas producers Woodside Energy and Santos fell 0.2% and 0.5%, respectively. In New Zealand, the benchmark S&P/NZX 50 index rose 0.1% to 13,547.74.