Aussie stocks: Market closes flat

MELBOURNE - The Australian share market closed flat on Thursday for the second consecutive day, as better than expected employment figures helped stocks rebound from early losses.

At the 1615 AEST close, the benchmark S&P/ASX200 index was 4.6 points, or 0.12 per cent, lower at 3763.3, and the broader All Ordinaries index also shed 4.6 points, or 0.12 per cent, to 3761.4 points.

On the Sydney Futures Exchange, the September share price index futures contract was three points stronger at 3728 points on a volume of 17,406 contracts, according to preliminary calculations.

Division director at Macquarie Private Wealth, Martin Lakos, said Thursday was a reasonably solid day on the market after early losses.

"The market was down over 20 points but has rebounded to be down about five (points)," Mr Lakos said.

"Volumes have been the key. The volume is low," he said.

Mr Lakos said the stronger than anticipated employment figures had strengthened the market.

Australia's unemployment rate was a seasonally adjusted 5.8 per cent in June, up from 5.7 per cent in May, but lower than the 5.9 per cent some economists had forecast.

"What has been interesting is that if you look at the total impact of net job losses, it is actually about 4000 jobs, so it is relatively small," Mr Lakos said.

Mining shares finished the day mixed, with BHP Billiton up 15 cents at $32.29 but rival Rio Tinto was down 60 cents at $47.60.

Despite a falling gold price, shares in Newcrest Mining rose 61 cents to $29.60 and Lihir Gold edged up four cents to $2.86.

Newmont Mining shares ended down five cents at $4.93.

At 1622 AEST the local spot price of gold was US$912.80 per fine ounce, down US$9.70 on Wednesday's close of US$922.50 per ounce.

The major banks were mostly weaker, with ANZ down 2.76 per cent, or 45 cents, at $15.85.

On Thursday ANZ said it would issue $2.2 billion of ordinary equity at $14.40 per share after accepting all applications for its share purchase plan that closed on July 2.

"ANZ came out with that note that they have filled all retail applications and I guess there is a perspective out there that retail might look to sell out of some of that ANZ," Mr Lakos said.

Commonwealth Bank shares fell 16 cents to $37.10 and National Australia Bank was off two cents at $22.07.

Westpac shares rose four cents, to $19.16.

Shares in Consolidated Media was up eight cents, or 3.16 per cent, at $2.61. This rise built on a sharp gain in the stock price on Wednesday amid strong speculation that the Kerry Stokes-controlled Seven Network Ltd was amassing a $175 million stake.

According to a notice filed with the stock exchange on Thursday, Perpetual had reduced its investment in the media company to 5.28 per cent from 10.64 per cent.

Fairfax Media shares were up 4.5 cents at $1.145.

Seven Network was down 15 cents at $5.05.

Newscorp ended up 18 cents ato $12.58, while the company's non-voting scrip were up five cents at $10.70.

Building materials, aluminium and sugar group CSR got a boost after its annual general meeting heard that trade in the first quarter of its fiscal year was pointing to a slight improvement in annual underlying earnings.

Shares in CSR ended up 8.5 cents at $1.605.

Energy stocks were trading mixed, with Woodside Petroleum down nine cents to $40.11 and Oil Search rising seven cents to $5.24.

Santos shares rose 23 cents to $13.20 and Origin Energy ended up 28 cents at $13.80.

The retailers were mixed also. Woolworths finished down 10 cents at $26.35 and Coles owner Wesfarmers dropped 78 cents to $22.01.

Harvey Norman edged up one cent at $3.03 and up-market retailer David Jones put on two cents at $4.30.

The top-traded stock by volume was Lakes Oil NL, with 84.57 million shares worth $1.32 million changing hands.

Lakes Oil ended up 6.67 per cent, or 0.1 cents, up at 1.6 cents.

Preliminary market turnover was 1.67 billion shares worth $3.57 billion, with 455 stocks up, 442 down and 281 unchanged.

- AAP