The benchmark S&P/ASX200 on Thursday finished down 96.4 points, or 1.14 per cent, to a five-week low of 8,322.8, while the broader All Ordinaries fell 97.4 points, or 1.12 per cent, to 8,601.7.
Many of Australia's biggest blue chip companies were taking it on the chin, with losses for the ASX20 outpacing that of the smaller market on a day when over 40 companies reported earnings.
IG market analyst Tony Sycamore said that while earnings season had gotten off to a strong start, it had "imploded this week in spectacular fashion," driven by disappointing results from Westpac and NAB as well as Bendigo and Adelaide.
"When stocks are priced for perfection as the banks have been, even minor misses will be punished," he added.
ANZ dropped 3.1 per cent to $29.21, NAB retreated 3.3 per cent to $35.11, Westpac fell 3.0 per cent to $31.22 and CBA lost 2.0 per cent to $155.73.
In the heavyweight mining sector, Fortescue dropped 6.2 per cent to a five-week low of $18.24 after posting a $US1.5 billion half-year net profit - down 54 per cent from a year ago.
Rio Tinto lost 1.5 per cent to $120.09 after reporting a 27 per cent drop in free cash flow in 2024, to $US5.5 billion.
BHP fell 2.0 per cent to $40.15 while goldminer Evolution climbed 1.6 per cent and rare earth miner Lynas added 5.7 per cent.
Elsewhere, Wesfarmers rose 1.3 per cent to $77.62 as the Kmart and Bunnings owner announced its half-year profit was up 2.9 per cent to $1.5 billion.
"The retail divisions benefited from households prioritising value, and from new and expanded ranges and offerings that helped grow their addressable markets," managing director Rob Scott said.
Telstra gained 5.6 per cent to a year-and-a-half high of $4.14 as the mobile operator hiked its dividend and announced a $750 million share buyback after posting a $1.1 billion profit in the first half, up 7.1 per cent from a year ago.
Super Retail Group dropped 12.5 per cent to $14.17 after the Rebel and Supercheap Auto owner posted a $130 million first-half profit, down 9.0 per cent from a year ago.
Other companies losing ground after posting earnings were chemical supplier Redox (20.9 per cent); construction material and equipment provider Maas Group (10.8 per cent); building restoration company John Lyng Group (6.2 per cent); Magellan Financial Group ( 10.1 per cent); pokies manufacturer Aristocrat Leisure (4.3 per cent); casino operator Skycity Entertainment (9.1 per cent); coking coalminer Coronado Global Resources (9.1 per cent) pathology chain Healius (6.6 per cent) and animal feed supplier Ridley Corp ( 6.9 per cent).
Others gaining on the backs of their earnings included networking provider Megaport (19.5 per cent); discount retailer The Reject Shop (19.5 per cent); Whitehaven Coal (8.9 per cent); infection prevention firm Nanosonics (23.1 per cent); alternative asset manager MA Financial (8.3 per cent); casual youth apparel chain Universal Store (9.7 per cent) and medical technology company Cogstate (7.3 per cent).
Goodman Group also dropped 5.0 per cent to $34.20 after completing a $4 billion capital raising at $33.50 a share, funds that will be used to invest in its data centre offering.
The Australian dollar was buying 63.64 US cents, from 63.69 US cents at 5pm AEDT on Wednesday.
ON THE ASX:
* The benchmark S&P/ASX200 index on Thursday dropped 98.4 points, or 1.15 per cent, to 8,322.8
* The broader All Ordinaries fell 97.4 points, or 1.12 per cent, to 8,601.7
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.64 US cents, from 63.69 US cents at 5pm AEDT on Wednesday
* 95.63 Japanese yen, from 96.63 yen
* 61.02 euro cents, from 60.89 euro cents
* 50.53 British pence, from 50.44 pence
* 111.24 NZ cents, from 111.17 NZ centsÂ
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