KEY POINTS:
SYDNEY- The Australian share market has closed flat, with Westpac and St George the only standouts among banking stock and the big miners generally weaker.
At the 1615 AEST close, the benchmark S&P/ASX200 index was up 2.9 points, or 0.06 per cent, to 4986.2, while the broader All Ordinaries gained 7.6 points, or 0.15 per cent, to 5037.6.
The September share price index futures contract fell one point to 4974 on a volume of 20,846 contracts.
CMC Markets senior dealer Matthew Lewis said the expectation the Reserve Bank of Australia (RBA) may cut rates next month helped lift the local market.
"Our local market seems to be buoyed by the prospect of a potential rate cut in September," Mr Lewis said.
"If that happens, it would be good for the equity markets."
Mr Lewis said Westpac was the standout today.
"Westpac gave out some very positive figures and the market liked it - very reassuring for traders.
"We also saw continued strength in oil and gas producers including Woodside Petroleum, which is not surprising considering we saw crude oil bounce off recent lows overnight."
Westpac shares rose 40 cents to $23.55 after it said it was on track to deliver 2008 cash earnings growth of between six and eight per cent.
Commonwealth Bank of Australia was down 53 cents to $43.42, National Australia Bank shed 62 cents to $25.15, ANZ lost 64 cents to $17.35 and takeover target St George Bank added 13 cents to $29.42.
In the mining sector, BHP Billiton lost four cents to $37.15, while rival and takeover target Rio Tinto gained $1.00 to $116.00.
In New York, Wall Street sank after weak readings on economic growth and the job market. The Dow Jones industrial average fell 224.64 points to 11,431.43.
In the US, crude oil prices jumped back above US$120 a barrel overnight, halting a steep three-day slide, after Kurdish rebels claimed responsibility for a fire at Turkish pipeline that supplies Western countries.
Local energy stocks were higher.
Woodside Petroleum rose 30 cents to $51.50, Santos gained 56 cents to $17.23 and Oil Search firmed 23 cents, or 4.58 per cent, to $5.25.
At 1644 AEST the spot price of gold was US$867.25, down US$17.05 from last night's Sydney close of US$884.30.
Newmont found four cents to $4.92, while Lihir Gold lost two cents to $2.41.
Newcrest Mining gained $1.19, or 4.72 per cent, to $26.40, after the gold miner said it acquired an initial stake in a joint venture with South Africa's Harmony Gold Mining in Papua New Guinea.
Media stocks were mostly weaker, with News Corp off 27 cents to $15.90 and its non-voting scrip down 28 cents to $15.27.
Fairfax lost two cents to $2.74, Seven fell 32 cents to $7.94, Consolidated Media picked up 19 cents to $3.25 and Ten added 0.5 cent to $1.62.
Retail heavyweight Woolworths fell 40 cents to $26.50, David Jones fell 11 cents to $3.60 and Wesfarmers was up 22 cents to $34.70.
Qantas gained 10 cents, or 3.03 per cent, to $3.40 and Virgin Blue was up 6.5 cents, or 7.65 per cent, to 91.5 cents.
Telstra found four cents to $4.54, while rival and Optus owner Singapore Telecommunications was up two cents to $2.82.
NZ's biggest listed company, Telecom Corporation of New Zealand, is forecasting net profit for fiscal 2009 to decline by as much as 30 per cent as it funds operational separation and network upgrades.
Telecom fell 21 cents, or 7.24 per cent, to $2.69.
Property maintenance and facilities management firm Programmed Maintenance Services has affirmed its annual earnings guidance and says it's well placed for growth.
Programmed lost two cents to $3.70.
Also making news, Japanese insurance giant Dai-ichi Mutual Life has taken foothold in the Australian insurance market after paying a premium to buy a third of Tower Australia for $376.3 million.
Tower Australia gained 14 cents, or 5.02 per cent, to $2.93.
The top traded stock by volume was Tower Australia with 51.9 million shares changing hands worth $193.3 million.
Preliminary total market turnover was 1.23 billion shares worth $5.06 billion, with stocks 513 rising, 511 falling and 325 unchanged.
- AAP
