The S&P/ASX 200 index began the new year with a modest gain, recovering slightly after a losing streak to close at 8,727.80. The positive start, up 0.15%, comes as energy and healthcare lead the charge, while resources and technology faced headwinds.
The ASX 200’s slight uptick marks a cautious start to 2026 after closing out 2025 on the back of a 0.9% pullback from 23rd Dec.
Leading the Day
4DMedical (ASX:4DX) emerged as the day’s top performer, surging 15.52% to $4.54. DroneShield (ASX: DRO) also saw significant gains, rising 8.12% to $3.33 after a particularly volatile 2025, while Nickel Industries (ASX: NIC) climbed 7.78% to $0.90.
Tailing the index on the day were Northern Star Resources (ASX: NST), falling 8.61% to $24.43. Capstone Copper Corp (ASX: CSC) also underperformed, dropping 4.29% to $14.51.
Top Australian Brokers
- Pepperstone - Top Australian broker - Read our review
- eToro - Invest in ASX and international shares - Read our review
4DMedical’s impressive performance was buoyed by the announcement of new agreements extending to 2027 with a global pharmaceutical firm, Royal Melbourne Hospital, and Spectrum Medical Imaging for its lung health analysis software. The agreement with Cleveland Clinic for the use of its CT:VQ platform, and the announcement of Julian Sutton joining the firm as CFO have provided almost a perfect start to the 2026 for 4DX bulls.
On the downside, Northern Star Resources’ decline coincided with the release of its December 2025 quarter operational update, which seemingly failed to impress markets. Capstone Copper Corp’s struggles mirrored a broader downturn in global metals markets, with both silver and gold prices pulling back from gains made in the previous year. Life360 Inc (ASX: 360) also declined, falling 3.19% to $32.46, reflecting weakness in the tech sector, influenced by declines in US tech stocks at the close of 2025.
The energy sector, propelled by Paladin Energy’s (ASX: PDN) 5.63% rise to $10.13, led the gains, advancing 0.63% overall. PDN’s share price made a new 52 week high at A$10.30 during the day, as momentum continues to build after a bullish end to the last year has seen shares gain 25.68% higher over the past month alone. Domino’s Pizza Enterprises Ltd (ASX: DMP) also contributed to the positive sentiment, rising 3.91% to $21.82, some 65% higher than the early October lows.
Starting the year in bullish fashion will be welcome news, although the inflation threat continues. A 6% gain through 2025 was a respectable return for the index, with some looking to 9,375 as a 2026 year end target; a 7% plus gain from here. There will likely be plenty of twists and turns along the way, so prudent risk management as always could prove to be key.
