The big bank stocks fell hard after the release of slightly stronger than expected official inflation data.
The market as a whole dropped another 0.4 of a percentage point, with investors seeing the CPI data as lessening the chances of further cuts in official interest rates.
The financials sector as a whole was trading 1.17% weaker.
Westpac was leading the banks down at $38.11, down 1.74%. The ANZ was weaker by 1.49% to $38.005, the NAB 1.48% to $35.23 and the Commonwealth 0.93% to $90.93. The Bank of Queensland was down 1.24% to $13.13.
The other big drag on the market was the miners. BHP was down 1.57% to $30.12 and Rio Tinto 1.64% to $54.59.