The big banks and BHP Billiton have dragged the share market lower.
Investors are being cautious around high yield stocks including the big four banks, Telstra and supermarket owners Wesfarmers and Woolworths, Bell Direct equities analyst Julia Lee said.
“The big yield stocks on the market are trading lower today,” she said.
“We have seen bond prices falling in the past month and yields rising around the globe.
“That’s been negative for the share market and we are seeing a lot of caution around the yield trade.”
She said a slide in BHP Billiton’s share price as its spin-off South32 that listed at noon was also weighing on the market.
“If you stripped BHP out, the materials sector would be having a positive impact,” she said.
South32 began trading at noon at $2.18.
BHP shares were down $2.11, or 6.49 per cent, to $30.38.
Fellow mining giant Rio Tinto was down 17 cents to $57.93, while Fortescue Metals was flat at $2.295.
Among the big four banks, the Commonwealth shed $1.09 cents to $83.66, Westpac lost 50 cents to $32.55, ANZ fell 55 cents to $32.57 and National Australia Bank was down 19 cents to $34.33 after going ex-dividend.
Agribusiness Elders was one of the best performers, rising more than five per cent, or 17 cents, to $3.35 after its half year underlying profit more than tripled due to higher livestock prices.
Paints maker Dulux Group has fallen nearly five per cent, or 30 cents, to $6.25 after its half year results disappointed with a 17.5 per cent fall in net profit.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was 33.3 points, or 0.58 per cent, lower at 5,702.2.
* The broader All Ordinaries index was down 29 points, or 0.51 per cent, at 5,701.
* The June share price index futures contract was 32 points lower at 5,715, with 10,641 contracts traded.
* National turnover was 689 million securities worth $1.4 billion.
