The Australian share market closed marginally lower on the final Monday of 2024, as subdued trading activity ahead of the New Year holiday failed to provide clear direction.
Market Ends Quiet Session in the Red
The benchmark S&P/ASX 200 index fell 6.4 points, or 0.1 per cent, to settle at 8,123.4. The broader All Ordinaries index also dipped, closing down 5.1 points at 8,382.2. Analysts attributed the modest decline primarily to thin order books, a typical feature of the holiday-shortened trading week between Christmas and New Year's Day.
Market participation was notably light, with many major institutional investors and traders away from their desks. This environment of low liquidity can amplify price movements, but on this occasion, it contributed to a lack of momentum in either direction.
Sector Performance: A Mixed Bag
The day's performance across sectors was mixed. The materials sector was a notable drag, falling 0.6 per cent as heavyweight mining stocks struggled. BHP Group lost 0.8 per cent, while Rio Tinto declined by 0.7 per cent. Fortescue Metals Group also finished lower, shedding 0.5 per cent.
In contrast, the energy sector provided some support, edging higher by 0.2 per cent. Woodside Energy gained 0.4 per cent, and Santos added 0.3 per cent, finding stability despite fluctuating global oil prices.
Other sectors showed minimal movement. The financial sector was largely flat, with the big four banks recording insignificant changes. Consumer discretionary and healthcare stocks also saw little net change by the closing bell.
Looking Ahead to the New Year
The quiet close sets the stage for the final trading sessions of the year. With markets closed on Wednesday for New Year's Day, activity on Tuesday is also expected to remain subdued. Investors are likely to hold off on making significant new positions until the full return of liquidity in early January.
Market strategists suggest that the focus will quickly shift to the macroeconomic calendar for 2025, with inflation data, central bank policy decisions, and corporate earnings season on the horizon. The thin trading conditions of the past week are seen as a pause rather than an indicator of a new trend for the Australian share market.
For local investors, the year-end period offers a moment of reflection after a volatile but ultimately positive year for equities. The slight dip on Monday does little to alter the broader annual picture, which has seen the ASX 200 reach record highs during 2024.
