The Australian Securities Exchange (ASX) showed signs of pressure on Wednesday, November 5, 2025, as the S&P/ASX 200 index extended its downward movement from the previous session. The index dropped 0.2% to approximately 8,795 points in morning trade, reaching its lowest level in over a month. Commodity stocks notably weighed on overall market performance, while mixed sector movements shaped the trading day.
ASX 200 as of 14:35 AEDT
Commodity Stocks Lead Decline
Gold mining shares faced significant declines, with some leading companies experiencing up to a 4.7% drop amid a weaker bullion price on the back of a stronger US dollar. Northern Star Resources declined by 3.3%, while Evolution Mining slid 5.1%. Mining stocks broadly suffered their third consecutive session of losses, pressured by softer iron ore demand from China coupled with decreasing copper prices. The mining sub-sector dropped 2.5%, with heavyweights BHP and Rio Tinto down 1.2% and 2.3% respectively.
Rio Tinto Ltd (ASX:RIO)
Energy shares also faced challenges, slipping close to 1% in response to falling oil prices. West Texas Intermediate crude fell 0.8% to US$60.55 per barrel, while Brent crude was down 0.7% to US$64.44 per barrel, driven by oversupply concerns in the global market. These declines impacted energy companies such as Beach Energy and Santos, which faced downward pressure during the session.
Technology and Financial Sectors Movement
Technology stocks tumbled over 2%, impacted by a sharp overnight decline on Wall Street after disappointing earnings reports and concerns on sector valuations. The broader sell-off in US tech shares influenced investor sentiment in Australia, contributing to negative momentum in the technology segment.
Financial stocks helped mitigate overall losses. Commonwealth Bank of Australia (CBA) rose by 1.4%, while other banks found support following the Reserve Bank of Australia’s decision to hold interest rates steady. The RBA’s cautious approach on further easing appeared to support banking margins, providing some resilience in financial stocks despite broader market weakness.
Commonwealth Bank of Australia (ASX:CBA)
Retail Sell-Off Hits Rare Earth Stocks
Several ASX-listed rare earth and critical minerals companies experienced a sell-off amid easing trade tensions between the US and China. Lynas Rare Earths fell by 4.1%, Iluka Resources fell 4.4%, Arafura Resources dropped 10.4%, and Australian Strategic Materials declined 9.1%. UBS mining analyst Dim Ariyasinghe noted that retail investors may be exiting positions due to shorter investment horizons.
Lynas Rare Earths Ltd (ASX:LYC)
Despite this shift, UBS maintained a neutral rating on Lynas and Iluka, citing unresolved fundamental trade issues between the US and China that are likely only postponed.
Ariyasinghe indicated that the rare earths sector’s outlook remained positive due to anticipated policy support aimed at reducing global dependence on China for critical minerals.
Corporate Spotlight: DroneShield and Westpac
DroneShield, the ASX-listed counter-drone technology company, announced that nearly 44.5 million performance options vested after achieving a $200 million cash receipts milestone in the past twelve months. CEO Oleg Vornik stated, “Performance Options align the DroneShield team and its investors, enabling DroneShield to attract the best talent and incentivise performance, whilst reducing the cash burden on the Company as it continues to rapidly grow.” The company expressed confidence in its growth prospects and building a strong foundation for 2026 and beyond.
Westpac Banking Corporation’s shares came under scrutiny after crossing the $40 mark. Analysts at Morgans maintained a sell rating with a $31.30 target, citing limited earnings growth despite current highs. The broker reiterated, “We continue to recommend clients SELL overweight positions.”
Westpac Banking Corporation (ASX:WBC)
Market Outlook
Despite recent declines, indicators suggested a less negative day ahead for the ASX. SPI futures pointed to a possible opening increase of about 12 points or 0.15%. However, volatility persisted as global market concerns influenced local conditions. Key factors included trade tensions, commodity price fluctuations, and investor risk appetite shifting toward defensive sectors such as utilities, which saw modest gains.
Investors continued to monitor developments in international markets, US financial sector stability, and central bank policies. The Reserve Bank of Australia’s stance contributed to cautious optimism among financial stocks, even as commodity sectors faced continued pressure from global demand and pricing trends.
In summary, the ASX on November 5, 2025, faced challenges led by commodity prices and tech weakness, with some support from financials and defensive stocks. Market participants are watching closely how domestic and international drivers impact the index’s near-term trajectory.
