ASX 200 materials was the best performer among the 11 market sectors by a long shot last year.
The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and produced total returns, including dividends, of 36.21%.
The sector outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) by more than 4:1.
The ASX 200 lifted 6.8% in 2025 to finish the year at 8,714.31 points. The total return was 10.32%.
The worst-performing sector was healthcare, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) falling 24.91%.
Let's review.
ASX 200 materials shares outperformed by 4:1
Strong growth in metal prices, particularly gold, silver, copper, and lithium, propelled ASX mining shares higher last year.
Mining strength was the main contributor to the materials sector's lead last year.
(The materials sector also includes agriculture stocks, building materials suppliers, packaging companies, and others.)
Materials vastly outperformed the other 10 market sectors.
The second best performer was industrials with a respectable 10.2% gain.
The best performing share within the ASX 200 materials sector was Pantoro Gold Ltd (ASX: PNR).
Shares in this ASX 200 gold miner, which only joined the benchmark index in the December quarter rebalance, ripped 220% in 2025.
The next best materials share was fellow gold miner, Resolute Mining Ltd (ASX: RSG), with 206% share price growth.
ASX lithium producer, Liontown Ltd (ASX: LTR) followed with 197% share price growth.
Other gold mining shares followed, with Regis Resources Ltd (ASX: RRL) up 196% and Genesis Minerals Ltd (ASX: GMD) up 194%.
Healthcare weakened by CSL and Pro Medicus share price falls
The healthcare sector was dragged down by its largest share, CSL Ltd (ASX: CSL).
The CSL share price plummeted 39% in 2025 amid challenging market conditions, including lower demand for vaccines worldwide.
Analysts at investment platform, Stake, said it was a "bruising year" CSL shares investors.
In Stake's 2025 Retail Investor Report Card, the analysts said:
Despite posting higher underlying profit, investors recoiled at plans to spin out its vaccine arm and cut more than 3,000 jobs globally.
Concerns over the restructuring weighed heavily on the stock…
CSL argued the overhaul would sharpen its focus on high-growth plasma therapies, but the market remained cautious.
Shares only faced further pressure after the firm downgraded FY26 revenue and profit guidance in late October.
The ASX 200 healthcare sector's third largest company also dragged it down.
Pro Medicus Ltd (ASX: PME) shares ended a period of rapid growth in July when the share price peaked at a record $336.
The correction that followed led to an overall 12-month decline of almost 12%.
Market sector snapshot
Here's how the 11 market sectors performed in 2025, ranked in order of capital growth.
| Rank | S&P/ASX 200 market sector | Capital gains | Total returns (including dividends) |
| 1 | Materials (ASX: XMJ) | 31.71% | 36.21% |
| 2 | Industrials (ASX: XNJ) | 10.2% | 13.98% |
| 3 | Financials (ASX: XFJ) | 7.97% | 12.05% |
| 4 | Communication (ASX: XTJ) | 7% | 10.56% |
| 5 | Utilities (ASX: XUJ) | 6.92% | 13.22% |
| 6 | A-REIT (ASX: XPJ) | 5.03% | 8.38% |
| 7 | Consumer Discretionary (ASX: XDJ) | 1.77% | 4.09% |
| 8 | Consumer Staples (ASX: XSJ) | (1.43%) | 2.01% |
| 9 | Energy (ASX: XEJ) | (2.25%) | 3.21% |
| 10 | Information Technology (ASX: XIJ) | (21.04%) | (20.80%) |
| 11 | Healthcare (ASX: XHJ) | (24.91%) | (23.66%) |
Source: S&P Global
