The Australian sharemarket's losses have accelerated as the day has gone on today, led by Australia's biggest banks and mining stocks. Nearing the end of the session, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has lost another 70 points, or 1.2%, to trade at 5,665 points.
While Macquarie Group Ltd (ASX: MQG) led the downward charge as a cum-dividend market was established (that is, it is now trading ex-dividend). Elsewhere, investors continued to reduce their exposure to its four larger rivals as they come to terms with the risks of holding them at their current sky-high valuations.
As highlighted by the Fairfax press, Greg Medcraft from the Australian Securities and Investments Commission (ASIC) has expressed his concerns regarding the Sydney and Melbourne property markets, which could threaten the banks' earnings. While the Reserve Bank's latest interest rate cutting cycle may have also come to an end, making the banks' dividends somewhat less appealing moving forward.
Australia and New Zealand Banking Group (ASX: ANZ) has been hit the hardest, down 2.3%, while Westpac Banking Corp (ASX: WBC) has also fallen by 2.2%. You can read more about the Big Four banks' decline here.
Although the banks have weighed the market down, BHP Billiton Limited (ASX: BHP) has been the primary drag on the bourse today. The mining stock has plummeted more than 7% during today's session – its biggest single-day plunge in more than six-years – with the stock no longer trading with rights to shares in its spinoff entity, South32 Ltd (ASX: S32).
South32, which comprises BHP's 'non-core' assets, experienced a somewhat lacklustre debut today with the stock opening at the lower end of the range most analysts were expecting. Analysts said the stock could trade as high as $3.50, but it opened at just $2.13 and has since fallen as low as $2.01. The weak debut has likely also weighed on the market's sentiment for the day.
