Australian shares have fallen for a fourth straight session, as CommBank led the big banks lower, eclipsing a broadly positive session elsewhere.
The S&P/ASX200 fell 40.3 points on Wednesday, down 0.46 per cent, to 8,630.4, as the broader All Ordinaries lost 28.9 points, or 0.32 per cent, to 8,880.7.
Commonwealth Bank shares had their worst day ever, tumbling 10.4 per cent to $153.67 after an interim profit miss, rising interest rates, and investment tax reforms loomed over its growth outlook.
The move topped its previous daily downside record of 10 per cent, logged in the days after COVID-19 was declared a global pandemic in March 2020.
The trading update was probably the most important catalyst for the dramatic sell off, Capital.com senior market analyst Kyle Rodda said.
"It doesn't take much for the sector to disappoint, because the banks' valuations are still quite rich and profits are one thing, and then the narrative has also been around provisions and how the energy crisis may worsen their financial position," Mr Rodda told AAP.
"There's a lot of speculation that maybe the budget had something to do with it, but I would suspect most of that was already priced in."
The heavily-weighted financials sector dropped more than four per cent, enough to push the major indices into the red despite the other 10 segments making gains.
Meanwhile, mining giant BHP hit a record $62.30 on the back of soaring copper prices, encouraging economic data from China and renewed hype around the global data centre build-out.
Gold miners were mostly higher, as the precious metal held its ground near $US4,710 ($A6,509) an ounce, while rare earths producers improved and lithium stocks came off.
The energy sector improved by 0.3 per cent, with fossil fuel stocks advancing after oil prices firmed overnight, amid reports Iran is tightening its grip on the Hormuz Strait, a key transit lane for a fifth of global crude and gas shipments.
Uranium stocks were under pressure, as Paladin Energy value tumbled by more than a tenth despite a swing to profit in the March quarter, as investors mulled weakening cash generation and high capital costs.
Consumer discretionary stocks outperformed the market, up almost three per cent after gambling machine maker Aristocrat Leisure rocketed higher on solid interim profits and extended share buybacks.
Staples rose 0.4 per cent, tracking with modest gains for Woolworths, Coles and Dan Murphy's owner Endeavour.
The Federal Court will hand down its first judgement in the ACCC's blockbuster case against Coles and Woolies over misleading discount allegations, with Coles fronting up on Thursday.
Also on Thursday, GrainCorp and accounting software Xero will hand down interim results.
The Australian dollar is buying 72.36 US cents, up slightly from 72.12 US cents on Tuesday at 5pm.
ON THE ASX:
* The S&P/ASX200 dropped 40.3 points, or 0.46 per cent, to 8,630.4
* The broader All Ordinaries fell 28.9 points, or 0.32 per cent, to 8,880.7
One Australian dollar trades for:
* 72.36 US cents, from 72.12 US cents at 5pm AEST on Tuesday
* 114.16 Japanese yen, from 113.60 Japanese yen
* 61.74 euro cents, from 61.38 euro cents
* 53.48 British pence, from 53.25 British pence
* 121.86 NZ cents, from 121.39 NZ cents
