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MELBOURNE - The Australian stock market closed marginally higher as figures showed that economic growth had slowed to a crawl in the September quarter.
At the 1615 AEDT close, the benchmark S&P/ASX200 index had risen 5.6 points, or 0.16 per cent, to 3,533.8, while the broader All Ordinaries
added 3.1 points, or 0.09 per cent, to 3,476.5.
On the Sydney Futures Exchange, the December share price index contract was 16 points lower at 3,556 on 33,403 contracts, according to preliminary calculations.
Growth figures released on Wednesday showed the Australian economy expanding by just 0.1 per cent in the September quarter, but contracting by 0.3 per cent in the non-farm sector.
CMC Markets analyst David Taylor said the market finished relatively flat after see-sawing from positive to negative territory despite a positive lead from United States markets overnight.
"The big news in the market today was the merger talks between Qantas and British Airways, which pushed Qantas shares higher during the morning trade," Mr Taylor said.
"It was the materials sector that helped push the market higher at the open with mining giant BHP gaining almost three per cent.
"However, its rival Rio Tinto dragged the market lower after some analysts slashed their earnings estimate for Rio.
"Another factor in investors' minds today was the much-anticipated September quarter gross domestic product (GDP) figures which came in below forecasts and is further evidence the Australian economy is dangerously close to being in recession."
In the resources sector, global miner BHP Billiton was 78 cents richer at $27.81 as it said it would cut manganese production at its majority-owned Samancor operation in South Africa due to weak market conditions for the metal.
Rio Tinto fell $2.20 to $36.80.
Mining services provider Boart Longyear shed 1.5 cents to 22 cents after it further revised downwards its earnings guidance for 2008 and said the year ahead would be challenging.
Oil and gas producer Woodside Petroleum was down $1.03 at $31.38, and Santos sagged 28 cents to $13.72.
Among the mahor banks, Commonwealth Bank dipped five cents to $31.20, National Australia Bank eased 13 cents to $18.59, ANZ put on 21 cents to $14.16 and Westpac jumped 40 cents to $16.50.
National carrier Qantas Airways ascended 10 cents to $2.35 as it confirmed it was exploring a potential merger with British Airways via a dual-listed company structure.
- AAP
