Australia’s share market is flashing a split-screen on Thursday, 11 December 2025.
By early afternoon in Sydney, the S&P/ASX 200 was trading around 0.6–0.8% higher near 8,630 points, buoyed by a fresh US Federal Reserve rate cut and still‑strong commodity prices. [1]
But dig beneath the headline index and it’s a very different story: lithium explorers, gold developers, defence tech and speculative small caps dominate today’s list of biggest losers on the ASX. [2]
This wrap brings together today’s key moves, news catalysts and early analyst takes, based on information available on 11 December 2025.
Market backdrop: strong index, messy internals
Jobs data and RBA expectations
Fresh labour force figures for November landed just before midday. Australia’s unemployment rate stayed at 4.3%, slightly better than market expectations, but the quality of jobs deteriorated:
- Full‑time employment fell by about 57,000
- Part‑time work rose by 35,000
- Employment growth over the past year (1.3%) is now lagging population growth (2.0%) [3]
Economists quoted by ABC and other outlets note that the data point to a cooling jobs market, but not a weak one. Markets are now pricing a higher chance of an RBA rate hike in early 2026, with some analysts warning that persistent inflation could force the central bank’s hand in February. [4]
Fed cut and miners at all‑time highs
Overnight, the US Federal Reserve delivered another 25‑basis‑point rate cut, helping to lift global equities and risk appetite. Local commentary from market strategists suggests the cut is supportive for growth assets and commodities, but the Fed also signalled it is nearing the end of this easing cycle. [5]
The Materials Index on the ASX 200 traded around 1.7–1.9% higher in morning trade, hitting fresh all‑time highs as iron ore, gold and lithium prices remain resilient. BHP is trading near levels last seen in late 2023 and within a couple of percent of record highs. [6]
That makes today’s losers list even more striking: some of the worst falls are coming from precisely the sectors that have led the market higher in 2025.
Biggest percentage losers across the ASX today
According to MarketIndex’s real‑time “Top Losers” scan, the heaviest falls by percentage (for stocks trading above 1 cent) as of early afternoon include: [7]
- N1 Holdings (ASX: N1H) – down ~19%
- Norwood Systems (ASX: NOR) – down ~19%
- Atlantic Lithium (ASX: A11) – down ~15%
- Moonlight Resources (ASX: ML8) – down ~15%
- Andromeda Metals (ASX: ADN) – down ~14%
- Norfolk Metals (ASX: NFL) – down ~14%
- Predictive Discovery (ASX: PDI) – down ~12%
- Tissue Repair (ASX: TRP) – down ~11%
- St Barbara (ASX: SBM) – down ~9%
- DroneShield (ASX: DRO) – down ~9%
- Arafura Rare Earths (ASX: ARU) – down ~8%
- Sunrise Energy Metals (ASX: SRL) – down ~8%
Almost all of the top 40 losers by percentage are in basic materials, energy or other speculative small‑cap pockets, underlining how crowded those trades have become this year. [8]
Let’s look at the key names where there is news driving the sell‑off.
Atlantic Lithium plunges after Ghana lease shock
Atlantic Lithium (ASX: A11) is one of today’s highest‑profile casualties.
- The stock is down around 15% to about $0.165, putting it among the top three losers on the entire exchange by percentage. [9]
- Atlantic Lithium is developing the Ewoyaa lithium project in Ghana, alongside other lithium assets in West Africa. [10]
A Reuters/Refinitiv wire report circulated via TradingView this morning noted that Ghana’s Parliament has temporarily withdrawn the mining lease for Ewoyaa, prompting ASX‑listed shares to fall as much as 18% intraday to around $0.16 – the steepest single‑day loss since October 2024. [11]
Separate auto‑generated announcements via TipRanks highlighted that Atlantic Lithium also quoted 217,720 new securities on the ASX after the vesting of performance rights – a relatively small dilution but another reminder that the capital structure is still evolving. [12]
Why it matters
- Ewoyaa is Atlantic’s flagship project, and the lease uncertainty raises questions about timeline, funding and ultimately project economics.
- The stock was already down about 31% over the past year, even before today’s slide, reflecting growing market scepticism about execution risk and jurisdictional uncertainty. [13]
Until investors get clarity on whether the withdrawal is procedural and temporary – or a sign of deeper political and regulatory issues – the market is likely to demand a much higher risk premium for the project.
Predictive Discovery tumbles as Perseus walks away
Predictive Discovery (ASX: PDI), a West Africa‑focused gold developer, is another major loser in percentage terms – and unlike many microcaps, it’s a $1.6–1.8 billion market‑cap name. [14]
- MarketIndex shows PDI down about 12% to $0.62 in intraday trade, even though the stock is still up roughly 150% over the past 12 months. [15]
The sell‑off follows a flurry of takeover drama:
- On 3 December, Perseus Mining unveiled a “superior proposal” to acquire Predictive, challenging an existing scheme with Robex Resources. [16]
- Today, Perseus announced that its binding offer has been terminated after Robex exercised its matching right and Predictive’s board ruled the revised Robex proposal as matching Perseus’s terms. [17]
- Commentary from Smartkarma and other research outlets suggests investors had been positioned for a possible bidding war, which is now off the table. [18]
Market takeaway
Today’s drop looks like a classic “deal premium deflating” move:
- Speculators hoping for a higher offer from Perseus or a rival now face a more straightforward merger with Robex, with less obvious upside from further corporate tension.
- Even after the fall, PDI remains one of the best‑performing gold names on the ASX in 2025, so there is still a lot of embedded optimism in the price. [19]
Short term, volatility is likely to remain high as investors digest the new structure of the deal and updated merger economics.
St Barbara hit despite “positive” Touquoy restart news
Gold miner St Barbara (ASX: SBM) has also slumped, dropping about 9% to roughly $0.51, putting it firmly on the top‑losers list. [20]
The timing is notable because St Barbara released apparently good news only yesterday:
- A restart study for the Touquoy gold mine in Canada showed positive economics, and the company said it would proceed to permitting. [21]
- SBM shares jumped more than 10% on 10 December, according to historical data. [22]
Today’s reversal has all the hallmarks of a “buy the rumour, sell the news” response:
- Traders who bought into the rally on speculation may be taking profits now that the details are public.
- Even after today’s fall, SBM’s 12‑month performance is still positive (around +47%), suggesting longer‑term bulls are ahead but short‑term players are exiting. [23]
For fundamental investors, the key questions now are capital requirements, permitting timelines and how Touquoy fits alongside St Barbara’s broader portfolio.
DroneShield: extreme volatility continues
DroneShield (ASX: DRO), the high‑flying defence technology stock, remains a volatility magnet.
- The stock is down almost 9% today to about $2.06, after a spectacular 16% gain yesterday, when it was one of the ASX’s top performers. [24]
This follows a wild few weeks:
- In November, Reuters reported that DroneShield had dropped 31% in a single session amid executive share sales, a contract disclosure issue and the sudden departure of its US head, sparking questions about governance and the sustainability of its earlier rally. [25]
- Capital Brief’s wrap of yesterday’s session noted that DroneShield had rallied about 16% as bargain hunters stepped in after the rout. [26]
Today’s pullback looks like classic whipsaw price action in a crowded momentum trade:
- The stock is still up around 220% over the past year, despite the recent turbulence. [27]
- Any fresh negative headlines – or just a loss of risk appetite – can trigger sharp profit‑taking.
Investors in such names need to be prepared for double‑digit daily moves in both directions, particularly while the story is dominated by sentiment and governance headlines rather than stable earnings.
New kid on the block: Moonlight Resources’ choppy debut
Moonlight Resources (ASX: ML8) only listed on the ASX today – and immediately found itself among the biggest losers:
- ML8 is down around 15% to $0.17, on turnover of about $237,000. [28]
- A recent LinkedIn update from the company confirmed Moonlight’s 11 December 2025 listing, highlighting its focus on gold and critical minerals with up to $10 million raised in its IPO. [29]
For small resource IPOs, this kind of post‑listing shake‑out is not unusual:
- Early investors and stag traders often cash in quickly.
- Limited liquidity can amplify moves in both directions.
Longer term, markets will focus on drilling results, project economics and funding, but for now Moonlight is yet another example of how unforgiving the small‑cap end of the market is in 2025.
Microcap pain: N1 Holdings, Norwood Systems and Tissue Repair
A cluster of thinly traded microcaps is also under pressure:
- N1 Holdings (ASX: N1H) – a private credit and SME property lender – is down more than 19% and has lost a similar amount over the past year. [30]
- Norwood Systems (ASX: NOR) – a telecoms and “cognitive voice” software provider – is off almost 19%, extending a roughly 60% 12‑month slide. [31]
- Tissue Repair (ASX: TRP), a clinical‑stage wound‑care biotech, has dropped about 11%, despite still being up more than a third over the past year. [32]
There are no major new announcements from these companies today, suggesting the selling is more about:
- Fragile sentiment in microcaps and early‑stage healthcare
- Low liquidity (even modest sell orders can move prices dramatically)
- Investors rotating towards larger, more liquid names after a strong year for risk assets
For traders, these stocks can offer big upside, but they also carry elevated single‑name risk – especially on news‑light days when broader risk sentiment turns.
Rare earths and critical minerals: Arafura and Sunrise under pressure
Even in the larger‑cap arena, some of 2025’s hottest critical‑minerals names are cooling:
- Arafura Rare Earths (ASX: ARU) is down just over 8%, despite being up nearly 90% over the past 12 months.
- Sunrise Energy Metals (ASX: SRL) has fallen around 8% as well, after an extraordinary 2,700%+ one‑year gain linked to enthusiasm around its nickel‑cobalt and energy‑transition projects. [33]
Here, the drivers look more technical than fundamental:
- These companies have been clear beneficiaries of the 2025 energy‑transition trade, and valuations have expanded sharply.
- With the Materials Index at all‑time highs and some miners priced for near‑perfection, days like today can trigger brutal but not unexpected profit‑taking. [34]
Unless there is fresh negative project news, these moves may say more about positioning and risk management than about any sudden change in long‑term prospects.
Healthcare and small caps: pain continues
Today’s losers list also includes Tissue Repair (TRP) and Vitasora Health (VHL), reinforcing a trend seen all week: smaller healthcare names remain under pressure. [35]
Kalkine’s wrap of 10 December highlighted that healthcare and small caps featured heavily among that day’s biggest losers, while a separate Livewire Markets analysis recently pointed out that healthcare has been the worst‑performing sector on the ASX in 2025, even as some fund managers are starting to move overweight on valuation grounds. [36]
The pattern is clear:
- Defensive, large‑cap healthcare (like CSL and ResMed) has held up relatively better.
- Early‑stage and small‑cap biotech remains vulnerable to funding concerns, trial risk and fickle retail sentiment.
For investors with a long horizon, some professionals now argue the sector is beginning to look attractive, but in the short run it continues to supply outsized losers on risk‑off days. [37]
How today’s macro story feeds into the losers list
Several macro forces tie these moves together:
- Rates and valuations
- The Fed’s latest cut is supportive overall, but local markets are also dealing with the prospect that the RBA may need to hike in 2026 if inflation stays sticky. [38]
- Higher domestic rate expectations tend to hit long‑duration growth names and richly valued small caps hardest – exactly the cohort dominating today’s fallers.
- Commodities and crowded trades
- Iron ore, gold and lithium have all enjoyed strong rallies, driving miners and explorers to multi‑year highs. [39]
- When everyone is on the same side of the boat, even neutral or slightly negative news (like Atlantic Lithium’s lease issues or deal fatigue around Predictive Discovery) can produce oversized price reactions.
- Regulatory and political risk
- Atlantic Lithium’s Ghana news is a reminder that sovereign risk remains a key factor in global resource stories. [40]
- APRA’s action against industry super fund HESTA and the ACCC’s $35 million fine against Bupa, both reported in today’s coverage, underscore how regulators are leaning more heavily into enforcement – a broader theme that can impact sentiment around financials and healthcare alike. [41]
What this means for investors
A screen full of double‑digit losers can be tempting – and dangerous. Here are a few practical filters to apply before jumping in:
- Is the sell‑off news‑driven or just noise?
- Lease withdrawal in Ghana (Atlantic Lithium) or a terminated takeover bid (Predictive Discovery) are material catalysts that can change the investment case. [42]
- In contrast, low‑liquidity microcaps with no new announcements may simply be experiencing order‑flow driven volatility.
- Has the stock already had a huge run?
- Many of today’s losers – PDI, SRL, ARU, even DRO – are still up triple‑digits year‑on‑year, meaning the market is cutting from a very elevated base. [43]
- What does the balance sheet look like?
- Explorers and pre‑revenue biotechs are more vulnerable in a world where funding costs stay high and risk appetite can turn quickly.
- Is the thesis broken – or just delayed?
- A temporary regulatory setback or aborted takeover may not kill a long‑term project, but it can dramatically change the timeframe and risk profile.
For most readers, the sensible response to days like this is not to blindly bottom‑fish every name on the losers board, but to:
- Update watchlists with stocks where the long‑term story still makes sense,
- Wait for more information and stabilised price action, and
- Consider diversification rather than concentrated bets on any single high‑volatility name.
ASX outlook after 11 December 2025
Looking beyond today’s tape:
- Macro strategists at outlets like Kalkine argue that the combination of Fed easing, still‑resilient commodities and relatively steady domestic data keeps the medium‑term outlook for Australian equities constructive, even if returns are likely to moderate from 2025’s strong run. [44]
- At the same time, live commentary from ABC and brokers suggests markets are nervous about inflation and the RBA, with rate‑sensitive sectors and expensive growth stocks remaining the most vulnerable if the policy outlook turns more hawkish. [45]
- In sector terms, fund managers quoted by Livewire say they are warming to beaten‑up healthcare, while still positive on quality large‑cap miners that can benefit from the energy transition and infrastructure spending. [46]
In other words, stock‑specific risk is back. A rising index no longer protects every name.
Days like 11 December 2025 – when the ASX 200 is green but parts of the market are a sea of red – are likely to become more common as investors rotate between sectors, reassess valuations and react to company‑specific news.
References
1. www.abc.net.au, 2. www.marketindex.com.au, 3. www.marketindex.com.au, 4. www.abc.net.au, 5. kalkinemedia.com, 6. www.marketindex.com.au, 7. www.marketindex.com.au, 8. www.marketindex.com.au, 9. www.marketindex.com.au, 10. www.marketindex.com.au, 11. www.tradingview.com, 12. www.tipranks.com, 13. www.marketindex.com.au, 14. www.marketindex.com.au, 15. www.marketindex.com.au, 16. www.globenewswire.com, 17. www.globenewswire.com, 18. www.smartkarma.com, 19. www.marketindex.com.au, 20. www.marketindex.com.au, 21. www.sharecafe.com.au, 22. stockanalysis.com, 23. www.marketindex.com.au, 24. www.marketindex.com.au, 25. www.reuters.com, 26. www.capitalbrief.com, 27. www.marketindex.com.au, 28. www.marketindex.com.au, 29. www.linkedin.com, 30. www.marketindex.com.au, 31. www.marketindex.com.au, 32. www.marketindex.com.au, 33. www.marketindex.com.au, 34. www.marketindex.com.au, 35. www.marketindex.com.au, 36. kalkinemedia.com, 37. www.livewiremarkets.com, 38. www.abc.net.au, 39. www.marketindex.com.au, 40. www.tradingview.com, 41. www.abc.net.au, 42. www.tradingview.com, 43. www.marketindex.com.au, 44. kalkinemedia.com, 45. www.abc.net.au, 46. www.livewiremarkets.com
