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Highlights:

  • The S&P/ASX 200 index fell 0.4% to 8,850.10, retreating from Tuesday’s record close.

  • Commonwealth Bank of Australia dropped nearly 5% after reporting record profit driven partly by volatile trading income.

  • Mining stocks advanced 0.9% on higher iron ore prices, with BHP, Rio Tinto, and Fortescue gaining up to 1.3%.

Australian shares retreated on Wednesday from a record high set in the previous session, weighed down by losses in financial stocks, particularly Commonwealth Bank of Australia (CBA).

The S&P/ASX 200 index slipped 0.4% to 8,850.10 points (at the time of writing on 13 August 2025), following a 0.4% rise to a record close of 8,880.80 on Tuesday. The prior day’s gains were driven by the Reserve Bank of Australia’s decision to cut interest rates by 25 basis points, a move that was widely anticipated, along with signals that further policy easing may be possible.

Financials Drag on Index

CBA shares fell nearly 5%, marking their lowest level since mid-May, and led a 1.8% decline in the banking sub-index to its weakest level since August 5. The lender reported a record annual profit, but analysts noted that a significant portion of the result was due to higher trading income, which is subject to volatility.

National Australia Bank slipped 1.6%, while Westpac fell 1.3%, adding to the downward pressure on the sector. CBA’s valuation remains among the highest globally for banks based on price-to-earnings ratio, intensifying focus on the sustainability of its earnings.

Miners Gain on Iron Ore Price Rise

Mining stocks rose 0.9% after iron ore futures climbed overnight. The gains came after steel mills in Tangshan, a key Chinese steel-producing hub, were ordered to halt operations, boosting expectations for firmer commodity prices. BHP, Rio Tinto, and Fortescue Metals Group each advanced between 1% and 1.3%.

Other Sector Moves

Technology stocks increased 0.8%, tracking the positive performance of U.S. tech shares. Gold producers rose 0.6% following a U.S. inflation report that heightened expectations for a potential interest rate cut by the Federal Reserve in September.

Energy company AGL Energy recorded significant drop in share price, plunging 12.3% after reporting a 21% drop in annual underlying earnings, missing analyst forecasts.

New Zealand Market Performance

In New Zealand, the S&P/NZX 50 index rose 0.6% to 12,840.70, contrasting with the softer performance in Australia.