ASX weighed down by tech sector slump despite BHP hitting new highs

A record-breaking run for commodities was not enough to lift the ASX as banks and technology stocks weighed against the market.

The benchmark ASX 200 closed down just 6.40 points or 0.07 per cent to 8,927.50, while the broader All Ordinaries slid 13.70 points or 0.15 per cent to 9236.90.

Australia’s dollar continues to appreciate against the Greenback and is currently buying 70.81 US cents.

Just three of the 11 sectors gained, with materials and energy offsetting an otherwise weak day of trading.

BHP continued to run higher up a further 1.80 per cent to $51.51, while Rio Tinto added 1.43 per cent to $157.04 and Fortescue slipped 0.18 per cent to $21.59.

Uranium miners surged as the price of the commodity jumped past $US100 a pound for the first time in two-years, driven by AI, decarbonisation and a surge in energy needs.

Deep Yellow shares soared 12.36 per cent to $2.91, NexGen Energy jumped 5.40 per cent to $19.52 and Paladin Energy closed up 1.43 per cent to $14.14.

Gold prices also continued their run higher, up another $US180 to $5602, while Crude oil surpassed $64 for the first time in six months.

Northern Star Resources leapt 3.11 per cent to $29.49, Evolution Mining closed up 2.41 per cent to $15.72 and Newmont jumped 2.55 per cent to $188.47.

IG market analyst Tony Sycamore said investors continue to buy the safe haven asset due to geopolitical tensions.

“Market sentiment soured on reports that President Trump is weighing a new round of military strikes against Iran, following the failure of preliminary discussions between Washington and Tehran regarding the country’s nuclear program and ballistic capabilities,” he said.

Offsetting the gains were rare earth producers were smashed on Thursday following unconfirmed reports in the United States that the Trump administration will not set price floors on the commodities.

Lynas shares fell 3.70 per cent to $15.60 and Iluka Resources slumped 14.09 per cent to $5.55.

Also driving the market lower was technology and banking shares.

WiseTech Global fell 2.09 per cent to $59.43, Xero shares slumped 3.07 per cent to $94.90 and Technology One dropped 2.30 per cent to $25.86.

With one full trading session remaining in January Australia’s information technology sector is down 8 per cent for the month.

It was mixed news for the major banks as CBA dropped 1.13 per cent to $148.66 and Westpac fell 0.95 per cent to $38.50.

National Australia Bank added 0.44 per cent to $43.06 and ANZ eked out a small 0.11 per cent gain to $36.44.

In company news, artificial intelligence stock Appen shares surged 30.56 per cent to $1.41 after the business reported revenues were up 10 per cent on the prior reporting period to $73.4m.

AMP shares fell 4.6 4 per cent to $1.64 after reporting underlying net profits after tax of $236 million.