KEY POINTS:
The Australian stock market has closed relatively unchanged despite a positive start to the day, with strong gains among the miners offset by across-the-board falls.
At the 1615 AEST close, the benchmark S&P/ASX200 index had dropped 1.4 points to 6251.4 while the all ordinaries index added 1.7 points to 6275.0.
On the Sydney Futures Exchange, the June share price index contract was steady at 6271, on a volume of 12,989 contracts, according to preliminary calculations.
Macquarie Equities client adviser David Halliday said strong commodity prices and a positive Friday close on Wall St gave an initial spur to the market, but falls among industrial stocks dragged the bourse down this afternoon.
"I think everyone was expecting a big day and we rallied early, but I think the reality of this two-speed market that we've got," Mr Halliday said.
"The resources have held up, and in terms of things to buy they look like the cheapest and best-value stocks in the market at the moment. But as for everything else, it's not so easy.
"Outside of the resources, it's getting harder to find too much value in this market and as such you're seeing the resources move up, but overall the market's coming down because a lot of the industrials look pretty expensive."
With the US and UK markets closed for public holidays tonight, Mr Halliday expected another quiet day on the market tomorrow.
"Again, we might be a little bit directionless," he said.
The big miners were some of the few stocks to star today, on stronger commodity prices.
The world's biggest miner, BHP Billiton, added 47 cents to A$31.13, while rival Rio Tinto jumped A$1.43 to A$94.15.
Banking stocks reflected the overall market trend, with the big four all weaker.
The Commonwealth Bank of Australia dipped one cent to A$55.35, the National Australia Bank three cents to A$42.17, ANZ three cents to A$29.04, and Westpac one cent to A$26.09.
Building materials company James Hardie Industries NV posted an annual profit, turning around an asbestos compensation-related loss last year.
The company made a net operating profit of $US151.7 million (A$185.6 million) for the year ended March 31 compared with a loss of $US506.7 million for fiscal 2006.
James Hardie closed up 31 cents at A$9.25.
Among energy stocks, Woodside Petroleum rose eight cents to A$44.38, Santos was steady at A$12.90, and Oil Search slipped one cent to A$3.91.
Qantas shares set a record close for the third consecutive trading day after the national carrier said it would increase services to Los Angeles and South Africa next year and fly to South America for the first time.
Qantas closed eight cents at a record A$5.74, while Virgin Blue lost four cents to A$2.58.
At 1633 AEST the spot price of gold in Sydney was $US656.20 per fine ounce, up $US1.26 on Friday's close.
Gold miner Newcrest Mining was unchanged at A$21.89, Newmont was down three cents at A$4.80, and Lihir Gold also three cents to A$3.10.
As speculation continues that Publishing and Broadcasting will divest itself further of its "old media" assets, shares in the company rose 26 cents to A$21.22.
PBL today said it was in talks to sell a further 25 percent stake in its media joint venture, PBL Media, to partner CVC Asia Pacific.
Other media stocks were mixed, with News Corp adding 31 cents to A$29.04 and its non-voting scrip up 30 cents to A$27.35.
Fairfax grew four cents to A$4.84, Ten Network by one cent to A$3.10, but Seven lost one cent to A$11.49.
Telecommunications giant Telstra dropped six cents to A$4.76.
Qantas was the top-traded stock by volume, with 55.07 million shares worth A$317.39 million changing hands.
Preliminary national turnover was 1.51 billion shares worth A$4.93 billion changing hands, with 573 shares rising, 706 falling and 342 unchanged.
- AAP