ASX Large Caps: Energy stocks cushion blow as retail slumps; Brickworks profit down 54pc

• ASX closed modestly lower despite a rally in energy stocks
• Retail stocks tumbled after sluggish retail sales data
• Brickworks slumps after 54pc drop in profit

Local shares seesawed on Thursday before closing -0.1% lower. Energy stocks were in focus after crude prices jumped by 4% overnight.

Karoon Energy (ASX:KAR) jumped 5%, Santos (ASX:STO) and Woodside Energy (ASX:WDS) by 3% each, and coal stock Whitehaven (ASX:WHC) was up over 5%.

Crude is now at the highest level in almost 12 months as  production cuts by Saudi Arabia and Russia continue to drive up the cost of oil. The latest prediction is for tropical storms to disrupt production in the Gulf of Mexico, which could potentially cause gasoline prices to climb even further.

Other stocks to rise today include lithium miners, while the retail sector slumped after the latest retail sales data.

According to the ABS release today, Australian retail sales volume rose modestly in August by just 0.2% as consumers continued to cut back on spending.

“Naturally, the outlook for discretionary retail stocks appears challenging,” said Stake market analyst, Megan Stals.

“Even consumer staples retailers such as Woolworths and Coles have also entered into a downtrend, as the impact of increasing theft and higher staffing costs hit the bottom line.”

Stals said segments that could benefit are those with defensive characteristics.

“Insurance companies weathered 2023 better than most, with AUB Group (ASX:AUB) being up over 30% and QBE Insurance Group (ASX:QBE) more than 20%,” said Stals.

Elsewhere, Asian stocks were mainly lower today as higher oil prices sapped risk sentiments in many markets.

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Building products company Brickworks (ASX:BKW) slumped 7% after reporting a 54% drop in net profit to $395 million for the full FY23.

Solomon Lew’s Premier Investments (ASX: PMV) slipped modestly after full year profits declined by 4.9% to $271 million. Premier also announced that Andrea Weiss, resident in the US, will be joining the Premier Board as a Non-Executive Director effective 4 December 2023.

Toll roads operator, Atlas Arteria (ASX:ALX), dropped 2% after announcing that its French toll road APRR would be hit with a new tax by authorities. Arteria says the new tax will represent 4.6% of revenues exceeding EUR120m per legal entity.

Diversified investment house Washington H Soul Pattinson  (ASX:SOL) meanwhile tumbled 7% after reporting a 9% drop in regular profit to $759.3 million for the full year.

“FY23 was marked by significant transaction activity and a rebalancing of the group portfolio toward private market investments,” said SOL.

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