Australian shares inched lower on Wednesday, the first day of the new financial year, weighed down by major banks, though gains in South32 ASX:S32 helped cap losses after the diversified miner agreed to sell most of its aluminium assets.
The S&P/ASX 200 index ASX:XJO fell 0.1% to 8,774.20 by 0010 GMT. The benchmark fell 0.5% on Tuesday.
Financials ASX:XFJ dropped 0.8%, snapping a two-day win streak. Top business lender National Australia Bank ASX:NAB fell 1.4%, and bigger Commonwealth Bank of Australia ASX:CBA slipped 1.1%. ANZ ASX:ANZ lost 1.3%.
The heavyweight sub-index ended the last month of the financial year 1.8% higher, although during the July 1, 2025 to June 30, 2026 period, banks underperformed, limiting the Australian benchmark's returns, which were amongst the lowest of developed markets worldwide.
The period saw an array of external factors affect Australia, ranging from tariff impacts to the U.S.-Iran war, while the central bank hiked rates by 75 basis points in 2026 to limit the impact on inflation and growth in Australia. The benchmark held back even as AI stocks in Asia and the U.S. rallied.
Meanwhile, South32 soared as much as 10% to A$4.29, its highest level since June 18, after it agreed to sell most of its aluminium assets to Alcoa NYSE:AA for an implied enterprise value of up to $5.6 billion.
The broader mining index ASX:XMM rose 1%, aided by top miner BHP's ASX:BHP 0.7% gain.
Coles ASX:COL slipped as much as 5.8% to a two-week low, after the country's no.2 grocer confirmed it was in discussions with U.S.-based TPG for a potential acquisition of Greencross Pet Wellness Company.
That weighed on the staples sector (.AXSJ), which dropped 2.7%. Larger rival Woolworths ASX:WOW also declined, dropping 2.9%.
Technology stocks ASX:XIJ tracked Wall Street peers higher, rising 1.2%.
In New Zealand, the benchmark S&P/NZX 50 index NZX:NZ50G fell 0.1% to 13,613.63.