The Australian sharemarket closed in negative territory on Tuesday, weighed down by a plunge in Commonwealth Bank shares after the financial giant’s latest update raised questions among investors about the company’s high valuation.

The S&P/ASX 200 fell 17.10 points or 0.2 per cent to 8818.80, with eight of 11 industry sectors in positive territory, but financials were dragged down by CBA, which is the biggest stock on the bourse.

CBA closed 6.6 per cent lower, dropping sharply after it said competition was increasing and its profit margins had fallen in the latest quarter, as it slightly increased market share. While analysts said CBA’s $2.6 billion in quarterly profits were broadly as expected, they also suggested CBA has been priced for near perfection by investors, leaving its share

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