Big four banks drag the ASX to worst day since April
The benchmark ASX 200 slumped 89 points or 1.02 per cent to 8,668.20. The massive falls came just a single trading day after the benchmark had its best gains since the mid April recovery.
Even with the large falls during Monday's trading, the ASX 200 still had its second highest ever close.
The broader All Ordinaries also fell 80.60 points or 0.89 per cent to 8,926.20.
The local dollar eked out a small gain and was buying 65.13 US cents at the time of writing.
Banks, consumer discretionary and property stocks led the declines with the market heavy financials slumping 2.51 per cent.
Westpac was the hardest hit of the big four banks down 3.61 per cent to $33.07, while CBA slumped 2.52 per cent to $177.87, ANZ sank 2.50 per cent to $30.05 and NAB slid 2.40 per cent to $38.25.
Consumer discretionary stocks also slumped during Monday's trading.
Wesfarmers fell 0.97 per cent to $83.75, JB Hi Fi dropped 1.48 per cent to $105.91 and Eagers Automotive slumped 3.58 per cent to $18.88.
IG market analyst Tony Sycamore said Monday's sharp fall is the largest since the Liberation Day sell-off in early April and is almost twice the size ASX futures predicted when they closed 49 points lower on Saturday morning.
'In the absence of any fresh news, today's pullback is possibly related to profit taking ahead of the August earnings season which will likely highlight stretched valuations with certain sectors, particularly the banks,' he said.
Meanwhile the major iron ore miners were one of the bright spots on the market, after the price of the underlying commodity continued its march higher.
Iron ore futures rose 1.2 per cent to $US99.50 a tonne.
Shares in BHP rose 0.42 per cent to $40.46, Rio Tinto gained 1.19 per cent to $114.46 while Fortescue climbed 1.47 per cent to $17.25.
In company news, AMP shares jumped 9.77 per cent to $1.68 after announcing its latest results. According to its latest statement AMP's superannuation division posted its first net inflow since 2017, along with growth in its platform and rising assets under management.
Shares in Afterpay's parent company Block soared 11.18 per cent to $122 after cracking the US S & P 500.
Block will replace Hess Corp after it was acquired by Chevron.
Australian home builder AV Jennings is up 1.50 per cent to $0.68 after it announced a fully franked special dividend of 16.7 cents per share on the condition it can be acquired by American real estate firm Proprium Capital Partners.
Shares in Cromwell Property Group jumped 8.22 per cent to $0.40, after announcing Brookfield has signed a binding sales and purchase agreement which is subject to the Foreign Investment Review Board approval.
Investsmart Group shares also soared 9.09 per cent to $0.12 per cent after the business announced a jump in total funds under management and strong performance fees revenue.
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