ASX falls despite CBA Q3 boost

Concerns that markets may have peaked at record heights have forced Australian shares lower, despite the Commonwealth Bank impressing.

The ASX had broad-based losses and fell for a second consecutive day after on Monday posting a record high close.

Investsmart market strategist Evan Lucas said US investment banks were concerned markets had climbed enough following world economies' rapid recovery from COVID-19.

"Those banks are pointing to high valuations in equities," Mr Lucas said.

"They point the finger at the pandemic and still see supply-chain challenges, which will hurt returns."

Makers of semiconductors are struggling to fill orders for cars and electronics.

"Investors are trying to find an excuse to pull back from how hot markets have been in the past 10 months," Mr Lucas said.

US markets have achieved record heights recently, but closed lower earlier.

The benchmark S&P/ASX200 index closed down by 52.1 points, or 0.73 per cent, to 7044.9 on Wednesday.

The All Ordinaries closed down 50.5 points, or 0.69 per cent, to 7281.1 points.

Strong third-quarter earnings for the Commonwealth Bank could not lift the wider market.

Australia's biggest bank said cash profit from continuing operations rose to $2.4 billion in the third quarter of this financial year.

This was helped by strong home-loan growth and increases in business lending. There were fewer bad loans.

The market heavyweight was the only one of the big four banks to close higher, rising 1.05 per cent to $95.57.

Qantas delayed resuming international flights until late December after the federal budget revised forecasts for overseas travel.

The airline was due to restart services at the end of October but on Wednesday pushed back the date.

Treasury expects international travel to remain low through to mid-2022.

Qantas shares were down 3.43 per cent to $4.50.

Building materials supplier CSR lifted full-year profit by 17 per cent, and the good times may continue as Australians take advantage of the federal government's HomeBuilder stimulus.

CSR reported a net profit of $146.1 million for the 12 months to March 31.

Shareholders will reap a final dividend of 14.5 cents per share, fully franked. There was no final dividend last year due to COVID-19.

Shareholders will also receive a fully franked special dividend of 9.5 cents per share. This will come from the sale of an industrial property at Horsley Park, NSW.

Shares were up 4.23 per cent to $6.16.

Elsewhere on the ASX the biggest losses were in energy and utilities. Both lost more than two per cent.

Shares in information technology and telecommunications were the only ones higher, rising by less than one per cent.

Accounting software vendor Xero gained 2.25 per cent to $134.88 prior to its full-year earnings on Thursday.

The big miners were mixed amid the gloom.

BHP dropped 0.55 per cent to $51.00; Fortescue gained 1.41 per cent as iron ore prices remained near record levels; Rio Tinto shed 0.44 per cent to $130.04.

On Thursday, US inflation figures will be closely watched.

The Australian dollar was buying 78.10 US cents at 1726 AEST, lower from 78.32 US cents at Tuesday's close.

ON THE ASX

* The benchmark S&P/ASX200 index closed lower by 52.1 points, or 0.73 per cent, to 7044.9 on Wednesday.

* The All Ordinaries closed down 50.5 points, or 0.69 per cent, to 7281.1 points.

* At 1726 AEST, the SPI200 futures index was up by 14 points, or 0.2 per cent, to 7035.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 78.10 US cents, from 78.32 cents on Tuesday

* 84.98 Japanese yen, from 85.22 yen

* 64.38 Euro cents, from 64.52 cents

* 55.25 British pence, from 55.43 pence

* 107.91 NZ cents, from 107.83 cents.