SYDNEY — The S&P/ASX 200 index tumbled Wednesday as heavy selling in the banking sector, led by a dramatic 10 percent plunge in Commonwealth Bank of Australia shares, wiped out more than $25 billion in market value in one of the biggest single-stock losses in recent Australian history. The sell-off came after CBA's quarterly update disappointed investors amid softer profits, higher bad debt provisions and fresh concerns over the federal budget's impact on housing and lending.

CBA shares dived as much as 10.6 percent intraday before closing near their session lows, erasing roughly $25 billion from the bank's market capitalization in a single trading day. The move dragged the broader index lower despite resilience in mining stocks fueled by strong copper prices. The benchmark closed down around 0.5 percent near 8,625 points, extending a recent losing streak amid investor caution.

CBA reported a March quarter cash profit of approximately $2.7 billion, up 4 percent year-over-year but falling short of analyst forecasts. Net interest income faced pressure while the bank lifted provisions by $316 million, including a notable top-up linked to geopolitical risks in the Middle East and a more conservative economic outlook. The results arrived just one day after Treasurer Jim Chalmers delivered the 2026-27 federal budget, which included changes to negative gearing and capital gains tax concessions.

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