Melbourne, March 02: Shares were lower by noon as tensions in the Middle East and rising oil prices weigh down the market.
At midday (AEDT), the benchmark S&P/ASX200 index was down 34.6 points, or 0.72 per cent, at 4791.8 points, while the broader All Ordinaries index was down 32.5 points, or 0.66 per cent, at 4887.9 points.
On the ASX 24, the March share price index futures contract was 45 points lower at 4780 points, with 25,006 contracts traded.
IG Markets strategist Cameron Peacock said a poor finish on Wall Street and escalating oil prices on the back of unrest in the Middle East were weakening the market.
“We’re obviously looking at a weaker start on the back of the poor session we saw on Wall Street overnight,” he said.
“There are also the ongoing tensions in the Middle East … the whole area is a bit of hotbed at the moment. When we see an escalation of violence, that sees oil prices shoot up.”
Mr Peacock said the materials and financial sector were particularly affected.
Among the big miners, BHP was 44c weaker at $45.93 and Rio Tinto down $1.31 at $84.00.
ANZ fell 26c, or 1.08 per cent to $23.76, CBA had slipped 57, or 1.07 per cent, to $52.57, NAB was 12c weaker at $25.45 and Westpac was down 14c at $23.13.
In other news, Grocery and liquor wholesaler Metcash Ltd was steady at $4.02 after it downgraded full year earnings guidance due to continuing difficult trading conditions.
Shopping centre owner Westfield Group dropped 5c, or 0.52 per cent, to $9.59 after it announced Frank Lowy is to become non-executive chairman of Westfield Group, while Peter and Steven Lowy will be joint chief executives, under changes to the property group’s board.
Explorer Northern Star Resources Ltd rose 1.5c, or 4.48 per cent, to trade at 35c after it reported it will announce a resource upgrade after making a final payment on a gold mine that has transformed it into a producer.
Wilson HTM Investment group Ltd was steady trading at 94c after chief executive David Groth stepped down from his position as the company announced a reshuffle to its executive and board.
Austar United Communications rose 18.5c, or 16.37 per cent, to $1.315 after it reported “verbal discussions” had taken place between its majority owner, Liberty Global Inc, and Foxtel over a possible takeover bid for the regional pay-tv operator.
The most traded stock by volume at 12.15pm was Empire Oil and Gas, with 155.11 million shares traded for $5.40 million.
Empire Oil and Gas shares were down 0.1c, or 2.63 per cent, at 3.7c.
National turnover was 1.86 billion securities changing hands worth $2.46 billion, with 356 shares up, 670 down and 357 unchanged.
———Agencies