The Australian market finished lower as weaker commodity prices weighed on the nation's biggest mining stocks.
RBS Morgans director of equities Bill Chatterton said big mining companies suffered the largest falls, while the rest of the market was peppered with varying results.
"The local market is mixed on a whole range of areas and we've pulled back into the defensives," Mr Chatterton said.
"Tuesday's budget didn't really do anything for investor confidence so we are taking our cues from overseas."
Among the major mining houses Rio Tinto shed 1.9 per cent, or $1.09, to hit $54.68 while BHP Billiton lost 0.79 per cent, or 27 cents, to touch $33.76.
Gold miner Newcrest fell 5.3 per cent, or 84 cents, to settle at $15.02 following a sharp drop in gold prices.
Three of the big four banks finished in negative territory, with only Commonwealth Bank going forward, gaining 18 cents to $73.83.
National Australia Bank fell two cents to $33.05, ANZ fell 12 cents to $29.86, and Westpac lost 27 cents, to $31.40.
Among the defensive stocks, Wesfarmers jumped $1.40, or 3.3 per cent to $44.20 while Woolworths rose 32 cents, or 0.93 per cent, to $34.71.
Graincorp shares were flat at $12.75 after it announced its first half profit had fallen by 34 per cent due to costs from its purchase of several food companies.
Australia's largest grain handler is working with American food giant Archer Daniels Midland to complete a $3 billion-plus takeover.
The Australian share market is expected to trade within a tight range ahead of Thursday night's release of US housing starts data for April.
KEY FACTS
* At 1615 AEST on Thursday, the benchmark S&P/ASX200 index was down 26 points, or 0.5 per cent, at 5,165.7 points, while the broader All Ordinaries index was down 29.1 points, or 0.56 per cent, at 5,144.2 points.
* On the ASX 24, the June share price index futures contract was down 31 points at 5,170, with 28,473 contracts traded.
* The price of gold in Sydney closed at $US1,391.5 per fine ounce, down $US23.39 from $US1,414.89 on Wednesday.
* National turnover was 1.5 billion securities worth $4.3 billion.
