Stocks close sharply lower as blue chips weigh

Broad-based selling pulled the local market deep into the red, with ANZ, BHP and Macquarie weighing heavily.

Australian stocks were pulled lower today as blue chips gave back this week’s gains and broad-based selling spread through the market.

At the 4.15pm (AEST) official market close, the S&P/ASX 200 was 0.7 per cent weaker at 5385.8 points. It had regained some ground after touching a fresh eight-week low earlier in the session.

The market has now lost 4 per cent since hitting its highest point for the year back on August 1, at 5611 points.

Meanwhile, the broader All Ordinaries index gave back 36.5 points, or 0.66 per cent, to 5484.6.

Major banks and miners pulled the ASX200 south, with ANZ, BHP and Macquarie among the biggest laggards.

Woolworths also weighed as it traded ex-dividend and lost 3.5 per cent, while Wesfarmers ended the session slightly positive.

BHP fell 1.2 per cent to $20.26 as the price of iron ore slipped 1.2 per cent in the most recent session, while Rio Tinto edged 0.3 per cent lower to $48.02 and Woodside Petroleum lost 1.6 per cent to $28.01.

ANZ fell 1.1 per cent to $27.08 as investors see the stock sitting well above its 2016 lows following a healthier rally than peers, while CBA dropped 0.7 per cent to $72.06, NAB lost 0.5 per cent to $27.67 and Westpac trickled less than 0.2 per cent lower, to $30.03.

Telstra gave up 0.6 per cent to $5.11, and Macquarie dropped a sharp 1.9 per cent to $81.39.

Sigma Pharmaceuticals was the star performer, shooting 11.3 per cent higher to $1.28, following a boost to the company’s earnings guidance, while gold miner Saint Barbara chalked up a session as the worst performing ASX 200 stock as it lost 6.5 per cent to $2.88.

The ASX200 heads into the final day of trade for the week just 0.2 per cent higher. Hopes of a solid rebound from last week’s 2.6 per cent tumble have dried up as investors continue to face the prospect of a flat end to the year.