Weaker-than-expected copper demand and job cuts from a major bank hit the ASX on Tuesday, offsetting a recovery in technology stocks.
The benchmark ASX 200 fell 28.80 points, or 0.33 per cent, to 8816.90, although it recovered from early falls of more than 1 per cent during the afternoon’s trading session.
Meanwhile, the broader All Ordinaries dragged 31.50 points or 0.35 per cent to 8944.20.
The Australian dollar closed flat, buying 69.82 US cents.
Overall, six of the 11 sectors finished higher, but falls in the major miners and financials dragged the market lower.
BHP shares slumped 1.59 per cent to $59.50, while Rio Tinto dragged 0.43 per cent to $154.84 and Fortescue traded flat at $15.26.
BHP led the declines after it announced it had produced 400,000 tonnes of copper in the three months to September - 19 per cent less than the previous quarter.
eToro lead analyst Josh Gilbert said investors could look past a weak production as the price of copper has soared 50 per cent in the last year, while iron ore output was up 4 per cent.
“Price is again doing the heavy lifting that volume should be doing, though, and that only works for as long as copper stays near record highs,” Mr Gilbert said.
“Copper is still BHP’s long-term story, but owning the world’s biggest copper mine only pays when it’s running as it should, and shareholders will want to see in the December quarter that those lost tonnes are on their way back.”
Also weighing on markets was an announcement from banking giant National Australia Bank that it was slashing 2500 jobs, in a move to “simplify its operating model”.
NAB Group chief executive Andrew Irvine said the changes would help create “a simpler and more efficient bank.”
“These changes are expected to improve outcomes for customers by reducing duplication and speeding up decision making”.
“There will be no material impact to customer-facing banking roles,” he said.
National Australia Bank slumped 1.75 per cent to $39.20, while Westpac fell 0.79 per cent to $35.13 and ANZ also dropped 0.79 per cent to $38.98.
Commonwealth Bank was an outlier as it eked out a 0.14 per cent gain to $155.60.
Helping to limit the losses were gains out of technology stocks, as Wall Street recovered overnight.
WiseTech Global shares jumped 1.36 per cent to $38.64, Xero climbed 1.69 per cent to $61.34 and Technology One added 0.58 per cent to $31.48.
In company news, Hub24 shares jumped 3.89 per cent to $67.08 due to net inflows of $4bn which is down 23 per cent compared with the prior corresponding period. There is now $168.6bn in total funds under administration, which is a 15 per cent jump year-on-year.
Critical communications, surveillance tech, and metal detectors company Codan’s shares dipped 0.40 per cent to $62.44 after its chief executive plans to sell 43,000 shares worth $2.7m.
Corporate Travel Management shares soared 23.39 per cent to $3.06 after securing a $65 deal with the International Air Transport Association.
SME lender Judo Banks shares 1.092 per cent to $0.92 despite warning that the “soft economic environment” led to an increase in 90 day loan arrears.