The benchmark S&P/ASX200 index on Friday shed 26.6 points, or 0.32 per cent, to 8,296.2, while the broader All Ordinaries fell 30.8 points, or 0.36 per cent, to 8,570.9.
For the week, the ASX200 shrunk 3.03 per cent in its biggest weekly plunge since a 3.9 per cent loss for the week ending September 2, 2022.
AMP chief economist Shane Oliver attributed the sharp drop to disappointing earnings news, particularly from banks and resource companies, and cautious Reserve Bank comments on the prospect for further interest rate cuts.
Dr Oliver said that in AMP's view, the RBA's caution was overdone and further easing was likely this year.
In currency, the Australian dollar earlier traded above 64 US cents for the first time since December 10.
Late Friday afternoon it had dropped slightly below that level, buying 63.90 US cents, up from 63.64 US cents at 5pm AEDT on Thursday.
The ASX's losses came even as three firms were buoyed by M&A activity.
Domain Holdings soared 40.1 per cent to a three-year high of $4.37 as Nasdaq-listed CoStar Group, the owner of Homes.com, lobbed a $2.65 billion takeover offer for the Aussie property listing firm.
Nine Entertainment, which owns a 60 per cent stake in Domain, jumped 20.1 per cent to a nearly one-year high of $1.73, while realestate.com.au owner REA Group sunk 11.3 per cent to a one-month low of $236.18 on the prospect of its competitor getting a well-funded new owner.
In health care, Mayne Pharma soared 33.1 per cent to a 10-month high of $7.20 after agreeing to be acquired by US-based Cosette Pharmaceuticals in a $672 million deal.
Telix Pharmaceuticals also had a strong day, climbing 13.8 per cent to an all-time high of $30.12 after the Melbourne-based radiopharmaceutical company beat guidance by posting $783 million in full-year revenue, up 56 per cent from a year ago.
QBE rose 3.0 per cent to $20.68 after the insurance company announced a full-year profit of $1.8 billion, up from $1.3 billion in 2023.
"We beat our plan for the year, continue to demonstrate greater resilience and are excited about our prospects for the year ahead," said group chief executive Andrew Horton.
On the flip side, Spark New Zealand sunk 19.3 per cent to a decade-low of $2.13 as NZ's leading telecommunications firm slashed its full-year guidance after a tough first half.
"When we updated the market in October, we outlined that we were experiencing one of the longest and deepest recessionary periods in recent history," said Spark chairwoman Justine Smyth.
"Since that time, we have seen no improvements in these conditions," with interest rate cuts failing to provide any boost to consumer or business spending.
Austal climbed 13.2 per cent to $4.04 after the shipbuilder announced its half-year net profit had more than doubled to $25.1 million, and had record work in hand of $14.2 billion.
The big four banks all finished in the red, with CBA falling 2.6 per cent to $151.73, ANZ dropping 1.4 per cent to $28.79, Westpac dropping 0.6 per cent to $31.03 and NAB dipping 0.1 per cent to $31.03.
In the heavyweight mining sector, BHP grew 2.8 per cent to $41.26, Fortescue climbed 2.3 per cent to $18.65 and Rio Tinto advanced 2.8 per cent to $123.49.
ON THE ASX:
* The benchmark S&P/ASX200 index on Friday dropped 26.6 points, or 0.32 per cent, to 8,296.2
* The broader All Ordinaries fell 30.8 points, or 0.36 per cent, to 8,570.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.90 US cents, from 63.64 US cents at 5pm AEDT on Thursday
* 96.08 Japanese yen, from 95.63 yen
* 60.92 euro cents, from 61.02 euro cents
* 50.48 British pence, from 50.53 pence
* 110.92 NZ cents, from 111.24 NZ centsÂ
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