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Australian shares slip as CBA profit disappoints

ABC News logo ABC News 10/08/2016 Liz Hobday and Thuy Ong
© AAP Image/Mick Tsikas

Australian shares have slipped as investors sold out of the banking sector after Commonwealth's profit report disappointed.

Commonwealth Bank posted a full-year net profit of $9.23 billion, but slightly missed average profit forecasts with investors concerned about a deterioration in asset quality.

Commonwealth Bank lost 1.3 per cent to $77.40, after touching a two-month intra-day high of $79.09.

Other banks were mixed, with Westpac slipping 0.6 per cent, NAB finishing flat, and ANZ gaining 1.2 per cent.

Bellwether miners BHP Billiton and Rio Tinto both drifted 0.7 per cent lower, while Fortescue Metals tumbled 2.1 per cent.

Meanwhile, Fairfax Media dumped 4.5 per cent to close at a one-month low of $0.95, after the embattled media company made a loss of $893.5 million for financial year 2016.

Energy firm AGL tumbled 3.8 per cent to a one-month low of $19.58 after posting a $408 million loss, hit by a write down on its coal and gas assets.

The Australian dollar rose 0.4 per cent to a three-month high of 77 US cents, as the US dollar slipped on weak economic data.

The dollar has bounced since hitting a low in late July, even as the Reserve Bank has cut interest rates to an historic low of 1.5 per cent.

In commodities trade, oil slipped to $US42.73 a barrel, iron ore was stronger at $US61.40 a tonne, while gold ticked higher to $US1,354 an ounce.

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