The Australian market was lower at noon as the four big banks posted losses as investors booked in profits.
The financial sector was dragging down the local market, despite some gains in the materials sector, IG Markets market strategist Evan Lucas said.
While UBS and Deutsche Bank have declared the Australian banking sector as overpriced, Wednesday’s falls were more likely to be due to investor profit taking after several bank share prices hit all-time highs recently, he said.
“We saw the financial sector in the US down overnight so it’s not surprising,” he said.
“Commonwealth Bank reached its all-time high yesterday, Westpac come off a high as well and ANZ was at a five-and-half year high so taking a breather is not unexpected.”
National Australia Bank announced on Wednesday plans to simplify its business and remove complexity and duplication, and Mr Lucas said investors were disappointed that it would take five years to implement.
National Australia Bank dived 58 cents to $30.96, ANZ dropped to 23.5 cents to $28.815, Commonwealth Bank fell 43 cents to $70.15 and Westpac lost 46 cents to $30.70.
The mining giants were all higher at noon.
BHP Billiton gained 37 cents to $36.04, Fortescue surged seven cents to $4.31 and Rio Tinto jumped to 53 cents to $62.45.
KEY FACTS
* At 1200 AEDT, the benchmark S&P/ASX200 index was down 10.7 points, or 0.21 per cent, at 5,107.2 points
* The All Ordinaries index was down 9.3 points, or 0.18 per cent, at 5,119.3 points
* The March share price index futures contract was down five points at 5,109 points, with 20,845 contracts traded.
* National turnover was 609.4 million securities worth $1.5 billion.