The high valuation of the Australian stock market carries high expectations, and any slightly disappointing performance is met with fierce selling.

Wisdom Capital APP learned that during the busiest period of the August financial reporting season in Australia, investors have been selling the stocks of Australian companies whose performance has fallen below expectations. Woolworths Group, Australia's largest food retail giant, and WiseTech Global are among the latest companies to experience a sharp drop in stock prices due to poor performance. Both companies saw double-digit declines in their stock prices on Wednesday, with supermarket operator Woolworths experiencing its most severe drop since 1997.