The Australian share market recorded its steepest one-day decline since 9 April on Monday, partially retracing Friday’s record high as investors locked in profits, leading to a sharp sell-off in the major banks.
The S&P/ASX 200 closed 89.0 points or 1% lower at 8,668.2, with nine of the 11 sectors ending the session in the red.
Financials were the weakest sector, falling 2.3% overall, with Westpac dropping 3.6%, Commonwealth Bank and ANZ losing 2.5% apiece, while National Australia Bank shed 2.4%.
AMP bucked the trend, surging 9.8% to its highest levels since February after its second-quarter update. Its superannuation arm recorded its first positive net inflows since 2017, supported by platform expansion and increased assets under management.
The Materials sector closed marginally higher, supported by a 3.3% rise in Singapore iron ore futures after reports that China is advancing a mega dam project in Tibet.
Miners responded positively, with BHP up 0.4%, Rio Tinto adding 1.2%, and Fortescue Metals rising 1.5%.
South32 gained 4.5% after reporting it had achieved 102% of its full-year production guidance, driven by strong June quarter output across key commodities.
Energy stocks also finished in positive territory as crude oil prices edged up. Woodside Energy added 1.4%, Santos gained 0.3%, and Beach Energy lifted 0.7%.
In corporate developments, Insignia Financial fell 5.8% after the company said there was no guarantee its discussions with $3.4 billion bidder CC Capital would result in a formal takeover offer.
Buy-now-pay-later firm Block, which owns Afterpay, soared 11.2% after news it will be added to the S&P 500 Index on Wednesday, following Chevron’s acquisition of Hess Corporation.
On the bond markets, local 10-year yields were down 0.3% to 4.335%, while 2-year yields were up 0.4% to 3.337%.
