The sharemarket closed lower but recovered some ground after the Reserve Bank cut the cash rate to a record low.
At the close today, the benchmark S&P/ASX200 index was down 12.5 points, or 0.24 per cent, at 5143.7 points.
The broader All Ordinaries index was down 11.1 points, or 0.22 per cent, at 5122.7 points.
The banks were being sold leading into the surprise interest rate move and had dragged down the overall market by day's end.
Brokers, including CMC Markets sales trader Ben Taylor, were surprised, saying it was expected that a cut would have made yield plays such as the banks attractive again compared with bonds but that did not occur.
It showed that maybe the banks had risen too far to record highs in recent days when they announced large earnings and people thought they were over-done and were taking profits while they could, he said.
"Maybe people are now actually looking to put the switch on back into the miners which seem to all be doing really well today," Mr Taylor said.
The Reserve Bank cut the cash rate to 2.75 per cent at its May board meeting, in an effort to boost economic growth, surprising a majority of economists who predicted it would stay on hold.
Commonwealth Bank suffered the heaviest fall, shedding $1.37, or 1.91 per cent, to $70.30; Westpac lost 59c, or 1.78 per cent, to $32.58; National Australia Bank slid 55c, or 1.64 per cent, to $32.95; and ANZ gave up 32c, or 1.02 per cent, to $31.19.
Meanwhile, the other major dividend yield plays also lost ground, with Wesfarmers losing 60c, or 1.41 per cent, to $41.90; while Woolworths' was 74c, or 2.08 per cent, off at $34.78.
Making news today, Telstra said it would spend $1.3 billion to boost its mobile and data capabilities.
Its shares retreated 5c, 0.99 per cent, to $5.10.
Beverage company Coca-Cola Amatil was the worst ASX200 performer with its shares plunging 10.52 per cent, or $1.52, to $12.93, after it said its earnings for the first half would fall eight to nine per cent blaming heavy discounting on soft drinks.
Mining stocks were re-embraced by investors, after the release of trade figures showed a $300 million-plus surplus in Australia in March led by the materials sector.
BHP Billiton added 80c, or 2.43 per cent, to $33.67; Rio Tinto put on $1.19, or 2.12 per cent, to $57.39, while goldminer Newcrest Mining rose $1.09, or 6.8 per cent, to $17.12.
The June share price index futures contract was 19 points lower at 5134 points, with 25,627 contracts traded.
National turnover was 1.6 billion securities worth $4.4bn.
