Stocks slip as miners and banks drag on bourse

Banks and miners helped drag the ASX into the red as tensions on the Korea Peninsula sapped investor confidence.

A pedestrian is reflected against the indicator board at the Australian Securities Exchange. (AAP Image/Mick Tsikas)

Big miners and financials weighed on the stock market today as geopolitical tensions dragged on investor confidence, while energy names provided shelter as crude oil prices shot higher.

The benchmark S&P/ASX200 was down 12.7 points, or 0.22 per cent, at 5,671 points. The broader All Ordinaries index also sank 12.1 points, or 0.21 per cent, to 5,729.6 points.

The bourse bore a choppy session and investors failed to show a convincing push toward risk options as the latest retort from North Korea’s foreign minister in the rouge nation’s war of words with the United States sparked concern.

“Without question the biggest worry is that the North Koreas shoot down a US aircraft or worse take out a US warship. That would change everything dramatically and the immediate ramifications would be dire,” said Institutional Sales and Trading Director Bell Potter’s Richard Coppleson.

Commonwealth Bank stocks were down 0.94 per cent at $75.10, ANZ shares were down 0.47 per cent to $29.86. Westpac was up 0.09 per cent, closing at $31.89 and NAB gained 0.16 per cent, closing at $31.33.

In resources, BHP slid 0.73 per cent at $25.79 and Rio Tinto shares shed 0.24 per cent to $65.85. Fortescue was down 1.95 per cent to $5.03.

Energy stocks proved the only sanctuary for investors as the sector closed higher on the back of an overnight surge in crude oil prices.

“Supply disruptions, combined with solid global demand, are working to support prices,” said ANZ senior economist Cherelle Murphy.

“Supply in the US continues to be hampered by rough Atlantic seas while concerns about potential supply disruption related to the Kurdish independence vote also impacted.”

Oil Search gained 2.77 per cent, closing at $7.05. Woodside Petroleum was up 2.88 per cent at $29.98 at the close. The Santos stock price rose 3.45 per cent, ending the session at $4.17 and Beach Energy closed 4.55 per cent higher at $0.805.

Sydney Airport shares dropped 0.5 per cent in the wake of GE veteran Geoff Culbert’s appointment to the role of CEO, while pesticide producer Nufarm dropped 2.7 per cent as the market shrugged off its annual profit growth and a sweetened dividend.

Shares in adventure apparel and equipment retailer Kathmandu soared over 7 per cent after it booked a 13.5pc jump in annual profit to $34.8m, while brand portfolio manager Premier Investments shed another 4 per cent in the wake of its full-year report card.

Meanwhile, the Australian dollar traded mixed throughout the session and was slightly down in late trade at US79.26 cents ahead of tomorrow’s industrial profit data out of China.