SYDNEY: A dip in banking stocks pulled the Australian sharemarket lower at noon, offsetting a slight bounce in resources stocks after better-than-expected BHP production figures.
Financial stocks were continuing yesterday’s downward momentum, as investors digested the government’s response to the Murray financial services inquiry, which backed calls for tougher capital requirements on the banks.
At 12.05pm (AEDT), the benchmark S & P/ASX200 was down 18.2 points, or 0.35 per cent, to 5217.4, while the broader All Ordinaries declined 15.4 points, or 0.29 per cent, to 5256.2.
Bell Direct equities analyst Julia Lee said the banks have also had a strong run recently and investors were taking profits.
“Most of the selling is coming from the financial space but I think what has stood out is the (mining-related) materials space,” Ms Lee said.
