The S&P/ASX200 closed 0.65 per cent lower at 7265.6 while the All Ordinaries Index fell 0.57 per cent to 7541.5.

“Banks are the main drag on the market with the regional Bank of Queensland and Bendigo Bank both down,” OMG chief executive Ivan Tchourilov said.

BOQ completed its $1.325bn acquisition of Members Equity Bank, which will remain a separate entity until the Australian Prudential Regulation Authority approves consolidation of the two businesses.

BOQ slid 1.43 per cent to $8.98 while Bendigo and Adelaide Bank slid 1.81 per cent to $10.30.

ANZ eased 0.43 per cent to $28.03, Commonwealth Bank gave up 1.17 per cent to $98.70, National Australia Bank backtracked 0.69 per cent to $26.04 and Westpac retreated 0.62 per cent to $25.65 after completing the sale of its general insurance business to Allianz.

Major retailers were also down, with the wholesale distributor to IGA and Foodland, Metcash, slumping 4.51 per cent to $3.81, Woolworths dropping 1.63 per cent to $37.51, Coles declining 1.52 per cent to $16.83 and Bunnings owner Wesfarmers giving up 0.8 per cent to $58.63.

In the mining sector, BHP shed 0.72 per cent to $48.22 and Rio Tinto slipped 0.5 per cent to $125.99 but Fortescue lifted 1.07 per cent to $23.59.

Among gold producers, Regis Resources rocketed 8.05 per cent to $2.55, St Barbara jumped 5.57 per cent to $1.80, Silver Lake Resources surged 4.82 per cent to $1.74, Evolution Mining firmed 2.22 per cent to $4.60, Newcrest Mining put on 2.06 per cent to $25.80 and Northern Star advanced 3.68 per cent to $10.14.

“Gold and gold stocks have had a poor past six months, but the precious metal has put together a few good sessions now and is starting to look a bit more bullish in the short term, which is reflected in the price action of gold stocks today,” Mr Tchourilov said.

He said the buy-now-pay-later sector was “on fire”, including Laybuy, which soared 9.43 per cent to 58 cents while Splitit dazzled with a 19.23 per cent leap to 62 cents.

“Splitit recently partnered with Middle Eastern BNPL provider Tabby, while Afterpay announced it has taken a stake in another Gulf-based payment provider, Postpay,” Mr Tchourilov noted.

Afterpay put on 0.75 per cent to $119.05 while Zip appreciated 1.72 per cent to $7.70 after announcing it had become the first BNPL provider on the platform of small-to-medium enterprise fintech Propell.

“There’s quite a bit of activity in the space at the moment, which is leading to increased trading activity across almost all names in the sector today. Splitit rallying nearly 20 per cent is evidence of that,” Mr Tchourilov said.

Realestate.com.au owner REA Group, which is majority held by the publisher of this title, News Corp, completed the acquisition of Mortgage Choice, which was delisted from the ASX.

REA Group shares eased 0.55 per cent to $168.10.

The Aussie dollar was fetching 74.84 US cents, 54.15 British pence and 63.18 Euro cents in afternoon trade.