ASX 200 LIVE: ASX ends lower; DroneShield soars 16pc, gold miners rally

The Australian sharemarket fell on Wednesday as broad-based losses were offset by a strong rally in materials amid the prospect that the Reserve Bank of Australia could lift interest rates in early 2026.

The S&P/ASX 200 index lost just 6.5 points, or 0.1 per cent, to close at 8579.40, despite nine of the 11 sectors finishing in the red. The All Ordinaries was down by a similar amount as investors were also awaiting a widely expected decision by the US Federal Reserve to lower interest rates overnight.

It comes after RBA governor Michele Bullock signalled on Tuesday that further rate relief was unlikely, after the bank held the cash rate steady at 3.6 per cent. UBS has shifted its rate increase expectations forward, saying this is now likely by the second quarter.

UBS Global Markets executive director Rob Taubman said the prospect of a rate rise in Australia was beginning to be reflected in equities.

“The market’s definitely factoring it in… people are moving to the view that we’re getting a rate increase next year,” he said.

“There’s a view in the market that with a rate rise here and cuts in the US, that the currency is going to move higher and that is a good outcome for resource stocks.”

Materials were the strongest sector on the index, climbing 1.3 per cent as Newmont climbed 4.4 per cent to $139.72 and Northern Star 5.1 per cent to $26.97 as gold was supported by an expected US rate cut. A record high in silver buoyed Sun Silver, which rose 5.8 per cent to $1.37.

The interest-rate-sensitive tech sector was the worst performer as TechnologyOne fell 1.3 per cent to $28.04 and WiseTech Global 1.9 per cent to $72.58.

DroneShield was the biggest riser on the index, soaring 16.2 per cent to $2.26 as retail investors piled into the former sharemarket darling after a plunge in the defence stock.

Stocks in focus

In company news, Ramelius Resources soared 5.6 per cent to $3.57 as it announced up to $250 million in share buybacks and increased its minimum dividend to 2¢ per share.

St Barbara rallied 10.9 per cent to 56¢ as it signed an agreement with China’s Lingbao Gold Group for a $370 million cash injection to acquire 50 per cent of St Barbara Mining, the subsidiary holding an 80 per cent stake in the Simberi Gold Project.

4DMedical leapt 6 per cent to $2.12 after it confirmed that the University of Miami had commenced clinical use of its CT:VQ respiratory imaging technology.

Symal Group advanced 5.9 per cent to $3.07 as it struck a $28 million deal to acquire Queensland civil contractors Timms Group and L&D Contracting.

Myer fell 3.5 per cent to 41¢ despite announcing a deal to stock clothing and apparel from Britain’s fast-fashion giant Topshop from February to attract younger shoppers.