Australian stocks: Market closes flat despite bank gains

MELBOURNE - The Australian share market closed flat after gains from the banks offset heavy losses from resource and energy stocks.

At the close, the benchmark S&P/ASX200 index was 3.2 points, or 0.1 per cent higher at 3348.4, while the broader All Ordinaries gained 2.6 points, or 0.08 per cent, to 3297.3.

At 1615 AEDT on the Sydney Futures Exchange, the March share price index contract was 23 points higher at 3360, on a volume of 82,841 contracts.

Austock Securities senior client adviser Michael Heffernan said strong gains from the banking sector offset heavy falls from the big miners and energy stocks.

"The standout today has been the soaring upwards of the banking stocks, but with the financials and resources both moving in opposite directions it is almost giving us a flat market overall," Mr Heffernan said.

"When you look at the top movers in the downward direction, it really is the energy related stocks (such as) BHP, as well as Telstra."

ANZ added 56 cents to $14.05, Commonwealth Bank put on 75 cents to $31.00, National Australia Bank picked up 57 cents to $18.35 and Westpac found 18 cents to $17.13.

The local market opened flat despite Wall Street finishing in positive territory for a fourth day in a row on Friday, with the Dow Jones Industrial Average adding 53.92 points to close at 7,223.98.

The big miners were weaker, with BHP Billiton losing 66 cents to $31.00 and rival Rio Tinto shedding $1.27 to $50.75.

A major major shareholder in Rio Tinto - Australian Foundation Investment Company Ltd - expressed deep concern over Chinalco's planned investment in the resources company, as regulators extended their deadline for the inquiry into the deal.

Debt-laden transport infrastructure firm Asciano Group put on 9.5 cents to 72.5 cents after it said had received proposals that could result in a change of control in the group or sale of some of assets.

The retailers were mixed, with Woolworths adding 13 cents to $24.70, David Jones gaining three cents to $2.44, Harvey Norman putting on 10 cents to $2.44 and Wesfarmers losing 50 cents to $17.78.

New Zealand-based chemicals and building products supplier Nuplex Industries is seeking to raise $110 million (A$87.98 million) through the issue of new shares, to reduce the company's debt.

Nuplex shares are in a trading halt and last traded at 75.5 cents.

Computershare gained 36 cents to $7.90 after the company agreed to purchase US firm Kurtzman Carson Consultants (KCC) for at least US$97 million (A$148.09 million).

The media sector was stronger, with Consolidated Media Holdings adding 10 cents to $2.05, News Corp putting on 26 cents to $10.61, its non-voting shares gaining 26 cents to $9.41 and Fairfax picking up half a cent to 91 cents.

Trans-Tasman casinos and cinemas operator SkyCity Entertainment Group put on eight cents to $2.20 after the company said revenue for the first two months of calendar 2009 had improved despite the soft economic conditions.

The energy sector was mixed, with Oil Search gaining four cents to $5.18, Woodside losing $1.73 to $36.05 and Santos falling $1.08 to $14.72.

The spot price of gold was trading at US$924.90 an ounce by 1621 AEDT, up 75 US cents on Friday's local close of US$924.15 an ounce.

The gold miners were weaker, with Newcrest losing 42 cents to $31.71, Lihir falling six cents to $2.97 and Newmont dropping eight cents to $5.80.

Goodman Group was the most traded stock by volume, with 104.06 million shares changing hands worth $36.79 million.

The company added nine cents, or 33.3 per cent, to close at 36 cents.

Preliminary market turnover reached 1.83 billion, worth $4.92 billion, with 512 stocks up, 366 down and 236 unchanged.

- AAP