Aust stocks close deep in the red

Local market follows Wall Street lower, with high valuation stocks falling.

The Australian sharemarket has closed deep in the red today, following Wall Street lower after soft Chinese trade data and an offshore move away from high-growth tech and biotech stocks.

At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index declined 52.2 points, or 0.95%, to 5,428.6, while the broader All Ordinaries index lost 54 points, or 0.99%, at 5,423.5.

IG chief market strategist Chris Weston said the local market struggled today, although utilities and telcos held up.

"The theme of selling high valuation, strong momentum names is taking place again, similar to what we saw earlier in the week," Mr Weston said.

"While funds would be increasing shorts positions in this space, this is an area of the market I feel most excited about.

"Unlike the US where concept stocks rallied strongly as the market felt the full force of a wave of excess liquidity, names like CSL, REA, CRZ and SEK are actually quality businesses.

"Buyers will be waiting."

Related Articles