The big banks are weighing down the share market after Westpac released results which disappointed investors.
The broader market is flat, with big miners the strong performers.
The big four banks are weighing on the market after Westpac unveiled a flat first half cash profit of $3.78 billion.
“It’s a major disappointment today. Although its result was OK, it certainly disappointed,” Phillip Capital senior client adviser Michael Heffernan said.
“It’s going to have a major negative impact on the market.”
Westpac fell $1.26 cents, or 3.4 per cent, to $35.47, Commonwealth Bank dropped $1.07, or 1.2 per cent, to $87.85, ANZ shed 72 cents, or 2.1 per cent, to $33.43 and National Australia Bank was down 47 cents, or 1.28 per cent, at $36.34.
Offsetting weakness among the banks were strong rallies among the miners, following some recent iron ore price improvements during offshore weekend trade.
“If the oil price and the iron ore price go up a little bit or don’t go down a lot, that’s viewed as being positive for them,” Mr Heffernan said.
BHP Billiton gained 54 cents, or 1.7 per cent, to $33.04, Rio Tinto jumped $1.06, or 1.8 per cent, to $59.35 and Fortescue Metals was down four cents to $2.33.
But oil and gas sector engineering giant WorleyParsons lost $1.18, or 10.3 per cent, to $10.27 after it blamed weaker commodity prices for its decision to shed 2,000 jobs.
Among the best performers was property group Stockland after it lifted its full year earnings guidance slightly, citing strong retail sales growth from its shopping centres.
It was up five cents, or 1.12 per cent, to $4.50.
Gaming company Tabcorp gained 4.5 cents to $4.875 after lifting its third quarter revenues despite a sharp fall within its Keno division.
Business software player MYOB has made a strong return to the share market after a six-year absence, with its shares debuting at $3.92, which is 7.4 per cent more than the $3.65 investors paid during the company’s initial public offering.
KEY FACTS
* At 1200 AEST on Monday, the benchmark S&P/ASX200 index was 1.6 points, or 0.03 per cent, lower at 5,812.8.
* The broader All Ordinaries index was up two points, or 0.03 per cent, at 5,800.8.
* On the ASX 24, the June share price index futures contract was one point lower at 5,798, with 14,402 contracts traded.
* National turnover was 568 million securities worth $2.0 billion.