Bargain hunters boost Oz shares

File photo / NZ Herald

The Australian sharemarket clawed back earlier losses yesterday to close flat as bargain hunters took advantage of oil-induced weakness to buy back into stocks.

The benchmark S&P/ASX200 index was up 10.3 points, or 0.21 per cent, at 4808.2 points, while the broader All Ordinaries index added 6.6 points, or 0.13 per cent, to 4902.5 points.

On the ASX 24, the March share price index futures contract was 16 points higher at 4806 points, with 39,554 contracts traded.

IG Markets market strategist Ben Potter said traders had realised the sell-off on Monday was overdone and had stepped in yesterday to snap up bargains.

"Rumours of [Libyan leader Muammar] Gaddafi seeking an orchestrated standing down saw oil and gold prices retreat from their overnight highs," Potter said.

Potter said financial, energy and industrial stocks led the market back into positive territory.

Commonwealth Bank was up 12c at A$51.81, Westpac gained 27c, or 1.16 per cent, to A$23.49, ANZ put on 28c, or 1.19 per cent, to A$23.77, and National Australia Bank was 16c higher at A$25.30.

Among energy stocks, Woodside was up 28c at A$42.70, Santos appreciated 13c to A$14.82 and Oil Search found 4c to A$6.80. Transurban rose 2c to A$5.32, Leighton was 4c firmer at A$31.18 and Brambles backtracked 3c to A$7.03.

Rio Tinto was down 24c at A$83.91 and Fortescue gave up 7c to A$6.40 but BHP Billiton gained 27c to A$46.59.

Media giant News Corp was down 13c at A$18.02, its non-voting scrip was 20c cheaper at A$17.00 and Myer Holdings fell 10c, or 3.11 per cent, to A$3.12.

- AAP