ASX 200 falls 31 points as Westpac's mortgage slump drags the banks
ASX 200 close: 9,232.6 (-0.33%) Breadth: 7 of 11 sectors higher; Small Ordinaries +0.62% Sentiment: mixed
The S&P/ASX 200 closed at 9,232.6 on 10 August 2026, down 31 points or 0.33%, as a 2.27% fall in financials outweighed gains in seven of the 11 sector indices. Westpac WBC.AU fell 5.88% to $35.70 after its third-quarter update showed owner-occupier mortgage applications down 18% and investor applications down 26% since the federal budget. The fall landed a day before the RBA decides on the 4.35% cash rate, with Westpac the only major bank forecasting an increase.
What moved the index
- Financials (-2.27%): about -75 bps of the 33 bp index fall. WBC.AU -5.88%, CBA.AU -2.10%, NAB.AU -2.39% and ANZ.AU -1.70% all fell after Westpac put a number on the post-budget lending slowdown. NAB had already flagged a 15% drop in its own applications.
- Materials (+1.22%): about +26 bps. BHP.AU +0.87% and RIO.AU +0.77% held their ground while gold and lithium miners ran, NEM.AU +4.36%, IGO.AU +3.62% and PLS.AU +3.06%.
- Health Care (+1.45%): about +14 bps, spread across RMD.AU +4.23%, COH.AU +1.80% and CSL.AU +1.72%.
- Communication Services (+1.70%): about +8 bps, almost all of it CAR.AU +9.92% on its FY26 result plus SEK.AU +6.87%.
Together those four sectors account for roughly -27 bps of the -33 bp index move. The residual sits in consumer discretionary (-0.45%), A-REITs (-0.28%) and utilities (-0.23%).
Session highlights
- WBC.AU -5.88% to $35.70 on third-quarter cash earnings of $1.8 billion, down from $1.9 billion a year earlier, with net interest margin flat at 1.89%.
- 18% and 26%: the falls in Westpac's owner-occupier and investor mortgage applications since the federal budget. The bank now expects investor housing credit growth of 4.5% in 2027, down from 9.1% this year.
- ARF.AU -21.95% to $2.56 after tenant Edge Early Learning, which leases 31 centres and pays about 14% of Arena's rent, missed its August payment. Arena issued default notices, engaged McGrathNicol and deferred its FY26 result to the week of 17 August.
- CAR.AU +9.92% to $29.70 on FY26 revenue of $1,253 million and net profit up 14% to $314 million, with the final dividend lifted 5% to 43.5 cents.
- Small Ordinaries +0.62% against the ASX 200's -0.33%. Large-cap financials absorbed the selling across that 0.95 point gap while the rest of the market rose.
Sector scorecard
- Best: Communication Services (+1.70%)
- Worst: Financials (-2.27%)
- Dispersion (best minus worst): 3.97 pts
- Financials also showed the widest internal spread: BOQ.AU +3.48% against WBC.AU -5.88%, a 9.36 point range inside one sector.
Top movers
| Ticker | Move | Reason |
|---|---|---|
| FPR.AU | +12.10% | Element Fleet bid $3.80 cash, rising to $4.00 on a process deed |
| CAR.AU | +9.92% | FY26 net profit +14% to $314m, dividend up 5% |
| PMT.AU | +7.53% | No announcement, moved with IGO.AU +3.62% and PLS.AU +3.06% |
| MI6.AU | +7.24% | Unannounced, likely flow-driven |
| CXO.AU | +7.02% | Finniss restart on track, mining underway at Grants pit |
| ARF.AU | -21.95% | Edge Early Learning defaulted on August rent |
| WBC.AU | -5.88% | Q3 update, mortgage applications down 18% and 26% |
| CDA.AU | -4.72% | Unannounced, likely flow-driven |
| BPT.AU | -4.62% | FY26 results day, fell against a firmer Brent print |
| AXQ.AU | -4.49% | Unannounced, likely flow-driven |
Notable announcements
- WBC.AU third quarter FY26: cash earnings $1.8 billion, net interest margin 1.89%, management flagged further margin pressure from mortgage and deposit competition.
- CAR.AU FY26: revenue $1,253 million and EBITDA $700 million, both up 12% in constant currency, net profit $314 million, final dividend 43.5 cents.
- ARF.AU: default notices issued to Edge Early Learning over 31 leased centres, FY26 result deferred to the week of 17 August pending an independent valuation.
- FPR.AU: board rejected SG Fleet's $3.60 proposal and is weighing Element Fleet's $3.80 cash scheme, which lifts to $4.00 if a process deed is signed by 5pm AEST on Tuesday.
- CXO.AU: Finniss redevelopment funded above $300 million, first spodumene concentrate targeted for the December quarter of 2026.
At the AU close (17:30 AEST)
| Asset | Level | Change | Context |
|---|---|---|---|
| S&P 500 futures | 7,790.5 | +0.14% | US cash shut, Friday's close +0.62% |
| Nasdaq 100 futures | 29,939.75 | +0.35% | Friday's Nasdaq close +1.30% |
| VIX | 15.39 | +3.29% | Up from 14.90 on Friday |
| Nikkei 225 | 66,970.22 | +2.08% | Closed, regional leader |
| Hang Seng | 25,916.41 | +0.97% | Still trading |
| Brent | US$83.88 | +0.39% | |
| Gold | US$4,412.6/oz | +0.29% | |
| AUD/USD | 0.7072 | +0.01% | Flat into the RBA |
Asia rose while Australia fell. The Nikkei, Hang Seng, KOSPI (+0.65%) and Shanghai Composite (+0.67%) all closed higher. Today's ASX weakness came out of the domestic bank story.
Next 24h catalysts (AEST)
- Tue 14:30 RBA cash rate decision. Consensus is a hold at 4.35%. Westpac is the only major forecasting a 25 bp increase.
- Tue 17:00 Deadline for FPR.AU to enter a process deed with Element Fleet, which would lift the offer to $4.00 per share.
- Week of 17 Aug ARF.AU FY26 result, deferred pending the independent valuation of the Edge properties.
- Mid-August SEK.AU FY26 result, with guidance pointing to adjusted profit near $205 million against $155.2 million in FY25.
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