The stock market has fallen further as investors respond to higher than expected inflation figures.
Stocks began the day in negative territory and were sold off further after the Australian Bureau of Statistics released official inflation figures at 1130 AEDT, Invast chief market analyst Peter Esho said.
Consumer price index (CPI) growth of 0.8 per cent for the December quarter was above the 0.5 per cent rise expected by economists.
"I think it puts a lid on further RBA cuts and there will be winners and losers on the market as a result of that," Mr Esho said.
Companies like Commonwealth Bank, who had reaped the benefits of lower interest rates, were among the worst affected.
CBA shares were down 55 cents at $75.55, while Westpac had lost four cents to $31.75, ANZ was steady at $31.14 and NAB had gained four cents to $34.03.
Shares in BHP Billiton were sold off despite the resources giant announcing record production numbers.
Mr Esho said the figures had failed to meet market expectations.
"I think they were respectable numbers but probably not enough to get the market excited," he said.
"If the BHP price does come down I think that will provide a good opportunity to buy the stock heading into February earnings season, where I think the market will be a little more pleased."
BHP had fallen 63 cents to $37.31, while rival Rio Tinto had lost $1.16 to $64.64 and iron ore miner Fortescue Metals was 15 cents lower at $5.26.
Telstra was down four cents at $5.22.
- At 1215 AEDT on Wednesday, the benchmark S&P/ASX200 index was down 40 points, or 0.75 per cent, at 5,291.5 points.
- The broader All Ordinaries index was down 38.4 points, or 0.72 per cent, at 5,303.6 points.
- The March share price index futures contract was 39 points lower at 5,249 points, with 10,811 contracts traded.
- National turnover was 754 million securities worth $1.5 billion.