SYDNEY — The S&P/ASX 200 index fell sharply Wednesday, closing at 8,625.3 after shedding 45.4 points or 0.52 percent, as heavy selling in banking stocks — led by a near 10 percent crash in Commonwealth Bank — overshadowed gains in mining giants and reflected investor unease over the federal budget's tax reforms.

The benchmark extended its losing streak to four straight sessions amid caution following Tuesday night's 2026-27 federal budget, which included changes to negative gearing and capital gains tax that could slow mortgage lending growth. Commonwealth Bank of Australia, the nation's largest lender, bore the brunt of the selling pressure after its quarterly update showed softer-than-expected profits and higher provisions for bad debts.

CBA shares plunged as much as 10 percent intraday to around $154-$155, marking one of its worst single-day drops in years. The bank reported a March quarter cash profit of approximately $2.7 billion, missing analyst forecasts by about 2 percent. A $316 million loan impairment charge, including a $200 million top-up to collective provisions linked to Middle East risks and a more cautious economic outlook, unnerved investors already digesting budget implications.

Other major banks also traded lower, though less dramatically, as analysts warned that proposed limits on negative gearing and adjustments to capital gains tax discounts could dampen housing market activity and credit growth. UBS and Morgan........

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