09.01.202607:03:00UTC+00Australian Stocks Finish Flat

The S&P/ASX 200 concluded the trading session largely unchanged at 8,718 on Friday, wiping out early advances and marking a weekly decline of 0.1%. This downturn was primarily driven by a sharp fall in Rio Tinto's share price, a leading mining entity, which plummeted over 6%. This marked its most significant one-day downturn since July 2022, following the company's announcement of preliminary takeover discussions with Glencore, a smaller competitor. If successful, this merger could result in the formation of the world's largest mining conglomerate, with an estimated combined valuation of approximately $207 billion. The impact of Rio Tinto's decline significantly weighed on both the benchmark index and the mining sector, which slipped by 0.3%. However, positive performances from competitor BHP Group mitigated broader market losses to some extent. The financial sub-index experienced a dip of 0.2%, with the four major banks' shares declining between 0.1% to 0.6%. The financial sector recorded its weakest weekly performance in seven weeks, with a cumulative decrease of 2.5%. In contrast, the energy sector witnessed a 2% surge, marking its most robust day in over two months, buoyed by stronger oil prices. Additionally, gold mining stocks provided additional support, as Northern Star Resources and Evolution Mining increased by approximately 0.5% and 0.6%, respectively.