As for the battle between the bull and the bears, the bears dominated from the outset and never let up, eventually breaking below the key 4000 point level.
The major banks struggled amid concerns over their limited access to offshore funding; CBA tumbled 2.6%, while rival NAB declined 1.9%.
The big miners were hard hit amid nagging fears over the global economy; BHP lost 1.4%, and Rio Tinto shed 0.7%.
In the energy space Woodside Petroleum had a terrible day (-5.8%) after it announced an FY12 production target that was below expectation.
The ASX 200 slumped 60 points (-1.5%), settling at 3984. Today’s losses dragged the market further into the red to close down a whopping 4.6% for the week.