Australian shares fell sharply on Wednesday, despite better-than-expected Australian economic growth numbers, as investors fear that valuations look stretched after seven weeks of gains.

The benchmark S&P/ASX200 index was down 72 points in the morning session and despite picking up a little finished 1 per cent, or 55.4 points, lower at 5323.2. The broader All Ordinaries fell 0.9 per cent to 5395.2.