The S&P/ASX200 fell 14.9 points by midday on Wednesday, down 0.17 per cent, to 8,702.2, as the broader All Ordinaries lost 14.2 points, or 0.16 per cent, to 9,008.2.
The move tracked with a weak lead from Wall Street overnight, in a subdued final week of 2025.
"Major US indices dipped into negative territory overnight, with thin volumes and year-end position-squaring keeping price action non-existent," Moomoo dealing manager Jimmy Tran said.
"Both the US and global equities remain on track to close the year with solid gains, despite considerable economic and political uncertainty."
The local bourse has largely underperformed its global peers, with an annual gain of about 6.6 per cent, compared to 17 per cent for Wall Street's S&P500, and almost 30 per cent for Hong Kong's Hang Seng index and Japan's Nikkei index.
Only four of 11 local sectors were trading higher by lunchtime in the shortened session, with energy stocks out in front and up 0.7 per cent as oil prices lift on geopolitical concerns in the Middle East and around the Russia-Ukraine war.
Woodside and Santos each gained more than 0.9 per cent, while coal producers and uranium stocks were mixed.
The sector has had a rough 2025, down as much as 25.9 per cent when US President Donald Trump's Liberation Day tariffs roiled markets in April, the 12-month loss had shrunk to around 2.5 per cent by Wednesday.
The heavyweight financials segment dragged on the bourse after a strong performance on Tuesday, down 0.6 per cent, with all big four banks and Macquarie in the red.
It has been a rocky week for raw materials stocks, up 0.1 per cent on Wednesday after seesawing on precious metal strength and profit-taking.
ASX-listed gold miners were broadly higher as the precious metal found some support at $US4,342 ($A6,455) an ounce, lifting names like Evolution, Northern Star and Newmont, which each gained around 0.9 per cent.
Gold and copper producer Greatland Resource was the top-200's best performer, up almost three per cent, while fellow gold play Predictive Discovery was at the other end of the table, down 2.6 per cent after Robex shareholders approved a merger of the two companies.
BHP was the best of the mega miners with a 0.3 per cent boost, while Rio Tinto and Fortescue slipped behind, roughly reversing Tuesday's fortunes for the three iron ore giants.
Consumer discretionary stocks fell 0.4 per cent, tracking with a slip in Bunnings owner Wesfarmers and a broader pullback after a decent boost on Tuesday.
The Australian dollar is buying 66.98 US cents, slipping slightly from 67.14 US cents on Tuesday at 5pm.
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