Banks weigh on local stocks

The local sharemarket was close to 1pc lower at noon as the financial sector slumped.

The Australian share market has continued to trade lower since the open of trade on Tuesday as investors wait for more information on the federal election outcome and the future of interest rates from the Reserve Bank of Australia.

The benchmark S&P/ASX 200 index was down by about 0.9 per cent at 12pm (AEST), with weakness among the major banks outweighing a mixed performance from the big miners and energy stocks.

The broader All Ordinaries index was down 47.6 points, or 0.89 per cent, at 5,317.6 points.

Market analysts say that with US markets closed overnight for the July 4 public holiday and subdued European trading, the local market has little in the way of leads.

Shortly after midday, National Australia Bank was down 1.6 per cent, at $24.67, Westpac had fallen 1.3 per cent to $28.60, and ANZ gave up 1.26 per cent to $23.45. Commonwealth Bank let go 0.98 per cent to $72.66.

It came amid uncertainty over the political environment for local bank operations as counting of Federal election votes continued.

The RBA releases its interest rate decision this afternoon, and observers expect no change ahead of inflation data released later this month.

The September share price index futures contract was down 60 points at 5,190 points, with 15,076 contracts traded.

National turnover was 1.16 billion securities traded, worth $1.27 billion.

AAP