The healthcare sector has dragged the share market lower as weaker than expected earnings from bionic ear maker Cochlear caused a sharp sell-off.

Falls among the big four banks also pushed the market lower.

“The ASX has given up all of yesterday’s gains, with the market unhappy with earnings reports from Cochlear and Domino’s Pizza,” IG market analyst Angus Nicholson said.

Cochlear dropped $6.48, or 7.2 per cent, to $83.56 despite a 56 per cent rise in annual profit, as investors had expected a stronger performance and a better outlook than what the company provided.

“The healthcare sector has been the biggest loser in Australia today driven by Cochlear, and no doubt there are nerves over how the market will react to star performer CSL’s earnings report tomorrow,” Mr Nicholson said.

CSL dropped $1.84 to $95.11 and Ramsay Health Care shed $1.21 to $63.16.

Domino’s shares fell heavily during the session as its strong earnings also failed to meet high expectations, `though they recovered most of that ground by the close.

Its shares fell eights cents to $41.07.

Commonwealth Bank was the best performing lender, shedding just two cents to $82.12, ahead of its full year results on Wednesday.

ANZ Bank lost 53 cents to $30.07, Westpac fell 63 cents to $32.05 and National Australia Bank was 86 cents weaker at $32.46.

The resources sector was stronger due to higher commodity prices, with BHP Billiton up 34 cents at $26.34, Rio Tinto up 86 cents to $54.60 and Fortescue Metals Group three cents higher at $1.945.

KEY FACTS

* At the close on Tuesday, the benchmark S&P/ASX200 index was down 36 points, or 0.65 per cent, at 5,473.2.

* The broader All Ordinaries index was down 31.8 points, or 0.58 per cent, at 5,473.1.

* The September share price index futures contract was 35 points lower at 5,410, with 36,051 contracts traded.

* The price of gold in Sydney at 1700 AEST was $US1,098.37 per fine ounce, up $US1.07 on Monday’s price of $US1,097.30.

* National turnover was 2.1 billion securities worth $6.1 billion.