The S&P/ASX200 fell 52.2 points by midday on Thursday, down 0.57 per cent to 9,157.2, as the broader All Ordinaries lost 51.4 points, or 0.55 per cent, to 9,353.3.
The heavyweight financials sector dipped almost 0.6 per cent, despite ANZ's $1.95 billion third-quarter profit, which helped boost its share price, as its net interest margin improved and home lending returned to system growth.
It was a steady but unspectacular result, IG analyst Tony Sycamore said.
"However, underlying demand looked softer: excluding the boost from the government's five per cent deposit scheme, mortgage application value declined five per cent quarter-on-quarter and dropped 12 per cent from the budget announcement through to the end of July," he said.
ANZ was the third major bank this week to announce a double-digit decline in home loan applications since May's property tax reform announcements.
Commbank weighed heavily on its sector, tumbling 2.7 per cent to $167.98 a day after delivering an $11 billion full-year profit and was the only big four bank in the red on Thursday.
The materials sector also dragged on the broader exchange, falling for a second straight session as Rio dropped 3.1 per cent after going ex-dividend and BHP edged 0.3 per cent lower.
Gold miners were mixed as the precious metal held its ground about $US4,410 ($A6,250) an ounce, having rallied more than nine per cent since the start of August as the US interest rate outlook softened.
Utilities continued to outperform, the sector gaining 2.6 per cent as Origin charged higher after delivering a $1.6 billion full-year net profit, echoing AGL's post-earnings move on Wednesday.
An almost five per cent sell-off in Telstra stocks dragged on the communications sector, after Australia's biggest telco reported flat revenue growth in the 2026 financial year, and as chief executive Vicky Brady noted July's disastrous outage was caused by an issue "within our control".
Consumer discretionary stocks were again under selling pressure, as concerns about the broader economy continued to weigh.
In company news, Swedish private equity group EQT Infrastructure has lobbed a $9.4 billion takeover bid for Cleanaway, catapulting the waste management company's share price 16 per cent higher.
Earnings season has continued to deliver a slew of winners and losers, with IAG and bourse operator ASX Ltd slipping after handing down their financial scorecards on Thursday, while Treasury Wine Estates shares gained more than four per cent despite posting a $1 billion loss.
The Australian dollar is buying 70.56 US cents, down from 70.61 US cents on Wednesday at 5pm.
