ASX 200 materials was by far the best performer of the 11 market sectors in FY26.
The S&P/ASX 200 Materials Index (ASX: XMJ) soared 47.48% and produced total returns, including dividends, of 52.11%.
The sector outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) by more than 7:1.
S&P/ASX 200 Index (ASX: XJO) shares rose just 2.77% and delivered total returns of 7%, according to S&P Global data.
Experts say there's more growth to come for the materials sector, with Australia now in a new mining boom that will be different to the last.
The biggest difference is the type of commodities in demand amid the green energy transition and artificial intelligence (AI) build-out.
ASX 200 mining shares dominate the materials sector, which also includes packaging companies and building materials suppliers.
Surging commodities values, particularly silver, lithium, cobalt, gold, platinum, and copper, gave mining stocks a serious boost in FY26.
The second-best sector performer was consumer staples, rising 10.09% and delivering total returns of 13.72%.
This reflected investors turning to defensive ASX 200 shares amid resurgent inflation and three interest rate rises in CY26.
The worst-performing sector was healthcare.
ASX 200 healthcare shares fell 37.4% and produced total negative returns of 36.15% due to many industry headwinds in FY26.
They included the FX rate for companies reporting in US dollars; cost of living pressures; higher shipping and labour costs, and US regulatory uncertainty for biotechs.
Technology shares were not far behind healthcare, losing 37.22% in value and delivering total negative returns of 36.97%.
Concerns over how AI might impact software-as-a-service (SaaS) businesses contributed to the sector's difficult year.
Investors are also worried that massive AI capex spending will not convert into measurable earnings increases easily.
Let's look at some specific company performances in the mining, consumer staples, healthcare, and technology sectors.
ASX 200 mining shares shoot the lights out
The market's largest ASX 200 mining share, BHP Group Ltd (ASX: BHP), rose 62% to finish FY26 at $59.40 on Tuesday.
BHP reassumed its crown as Australia's No. 1 listed stock in May, and hit a record high of $65.98 in June.
PLS Group Ltd (ASX: PLS) was among the fastest rising ASX 200 shares of FY26, up 275% to $5.02.
ASX 200 gold share Minerals 260 Ltd (ASX: MI6) leapt 508% to 73 cents per share.
In the consumer staples sector, Woolworths Group Ltd (ASX: WOW) shares rose 29% to $40.03 in FY26.
The Woolworths share price finished the year with a 52-week high of $40.60 on 30 June.
Healthcare and tech tumble, but a comeback has begun
The CSL share price more than halved, down 52% to $114.74 on Tuesday.
Cochlear Ltd (ASX: COH) shares also tumbled 59% to $121.75 in FY26.
In the tech sector, WiseTech Global Ltd (ASX: WTC) shares dove 70% to finish the year at $33 apiece.
This made WiseTech the biggest faller of the ASX 200 for FY26.
The Xero Ltd (ASX: XRO) share price tumbled 60% to $72.22.
However, both the healthcare and tech sectors appear to be staging a comeback.
Healthcare shares appear to have reached a pivot point on 3 June when the S&P/ASX 200 Health Care Index (ASX: XHJ) touched a 9-year low.
Since then, ASX 200 healthcare shares have lifted 17% while the broader ASX 200 has eased 0.1%.
Tech shares appear to have turned on 31 March, and are up 20% since then compared to a 4% bump for the ASX 200.
Image source: Getty Images
Market sector snapshot
Here's how the 11 market sectors performed in FY26, ranked in order of capital growth.
| Rank | S&P/ASX 200 market sector | Capital gains | Total returns (including dividends) |
| 1 | Materials (ASX: XMJ) | 47.48% | 52.11% |
| 2 | Consumer Staples (ASX: XSJ) | 10.09% | 13.72% |
| 3 | Energy (ASX: XEJ) | 9.37% | 14.51% |
| 4 | Utilities (ASX: XUJ) | 5.89% | 11.87% |
| 5 | Industrials (ASX: XNJ) | 1.69% | 5.24% |
| 6 | Financials (ASX: XFJ) | (1.89%) | 1.69% |
| 7 | Consumer Discretionary (ASX: XDJ) | (3.56%) | (1.21%) |
| 8 | A-REIT (ASX: XPJ) | (5.32%) | (2.24%) |
| 9 | Communication (ASX: XTJ) | (12.4%) | (9.41%) |
| 10 | Information Technology (ASX: XIJ) | (37.22%) | (36.97%) |
| 11 | Healthcare (ASX: XHJ) | (37.4%) | (36.15%) |
Source: S&P Global
