ASX dips lower at noon as commodities drag

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The local share market has edged lower this morning as gains by the tech sector and consumer stocks were outweighed by losses by the major mining and energy companies.

The benchmark S&P/ASX200 index was down 12.2 points, or 0.18 per cent, to 6,747 at noon on Thursday, while the broader All Ordinaries was down 3.8 points, or 0.05 per cent, at 6,971.4.

Overnight the Wall Street indices closed higher for a second day, with the NASDAQ gaining 1.6 per cent, but a fall in commodity prices was weighing on the Australian market.

BHP was down 1.1 per cent to $36.72 and Rio Tinto had declined 2.5 per cent to $95.37 after iron ore prices dipped.

Woodside was down 3.9 per cent to $31.31 as oil prices fell due to a strong US dollar. The oil producer also reported a 60 per cent rise in quarterly production from the first three months of 2022, boosted by its merger with BHP’s petroleum business.

Santos was down 1.2 per cent to $7.30 despite the oil company reporting first-half sales revenue of $US3.8 billion, up 85 per cent.

Tech stocks were the biggest gainers at midday, with Xero up 2.0 per cent to $89.38 and Wisetech up 2.5 per cent to $48.64.

In the financial sector, ANZ shares were down 0.1 per cent to $21.455 after they resumed trading following a capital raising to help fund its $4.9 billion purchase of Suncorp’s banking arm.

NAB was down 0.2 per cent and Macquarie had fallen 0.6 per cent but Westpac and CBA were gainers, rising 0.5 per cent and 0.4 per cent, respectively.

Zip Co was up 5.3 per cent to a six-week high of 70c as the buy now, pay later company reported fourth-quarter revenue of $155.4 million, up 27 per cent from a year ago.

Zip said it had $278 million in cash and reserves which it said was enough to fund it through cash profitability, although analysts noted its 40 basis point rise in Australian bad debts , to 3.8 per cent.

The Australian dollar was buying 68.92 US cents, from 69.13 US cents at Wednesday’s close