The S&P/ASX200 has lost 2.9 points, or 0.03 per cent, to 8,538.9, as the broader All Ordinaries eased by 1.6 points, or 0.02 per cent, to 8,768.6.
After rising as high as 8,567.3 in early trade, the top 200 shied away from its best-ever close of 8,555.8 and its 8,615.2 intraday peak from February 14.
"It's been a bit of a bit of a limp session, to be honest, which probably can be attributed to the fact we've had a very strong run and we're near all-time highs," Pepperstone head of research Chris Weston told AAP.
"A lot of the big market cap stocks have got incredibly overstretched valuations in fundamental terms."
The Commonwealth Bank hit a record of $182 per share on Thursday after becoming the first ASX-listed company to reach a $300 billion market cap the day before.
Despite CBA's lofty price tag, passive flows from superannuation funds and ASX-tracking exchange traded funds (ETFs) will likely keep pushing it higher.
"A lot liquidity of that goes into the equity market, it's price insensitive," Mr Weston said.
"(Fund managers) don't actually care what price they pay, they've just got to go and buy it."
Four of 11 sectors finished higher, as IT stocks rose 0.7 per cent after a third straight night of Nasdaq gains.
Financials faded 0.1 per cent after hitting a record high on Wednesday and materials lifted 0.5 per cent as investors found a home for bank stock profits and as China tightened controls on rare earth exports, sending critical minerals miners higher.
Mixed miner Mineral Resources was the top 200's best performer, surging 14.8 per cent, followed by Lynas Rare Earths (12.5 per cent) and lithium play Pilbara Minerals, which rallied more than 12 per cent.
Large cap miners were mixed, Fortescue gained 1.5 per cent, but stalwarts BHP (0.1 per cent) and Rio Tinto (0.3 per cent) could only grind marginally higher.
Gold prices eased during the session, fading 0.5 per cent to $US3,390 ($A5,218) an ounce.
Energy stocks slipped 0.4 per cent, tracking with a slip in oil prices as Saudi Arabia lowered crude prices for Asia as OPEC+ looks to hike production in July.
Brent futures are trading at $US64.61 a barrel, about 0.9 per cent lower than Wednesday at 5pm.
Health care stocks were the worst performing sector on the ASX, down 0.8 per cent as CSL, Australia's third-largest company, slipped 1.3 per cent.
Looking ahead, the European Central Bank is expected to reduce the EU's main refinancing rate from 2.4 per cent to 2.15 per cent overnight and US unemployment claims data also has the potential to nudge markets.
The week's biggest data point won't come until after Friday's ASX close, when investors will be watching US non-farm payrolls for any impacts of tariffs and lumbering growth on the world's largest economy.
The Australian dollar is buying 64.96 US cents, up from 64.63 US cents on Wednesday at 5pm, after weak US manufacturing and jobs data pushed the greenback lower overnight.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday 2.9 points lower, down 0.03 per cent to 8,538.9
* The broader All Ordinaries fell 1.6 points, or 0.02 per cent, to 8,768.6
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.96 US cents, from 64.63 US cents on Wednesday at 5pm
* 93.03 Japanese yen, from 92.99 Japanese yen
* 56.93 Euro cents, from 56.80 Euro cents
* 47.95 British pence, from 47.78 pence
* 107.70 NZ cents, from 107.65 NZ cents
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