THE Australian share market closed relatively flat today as positive sentiment towards the resources sector was offset by weakness among some of the major banks.
The benchmark S&P/ASX200 index rose 1.6 points, or 0.03 per cent, to 4,925.9 points, while the broader All Ordinaries index gained 7.7 points, or 0.16 per cent, to 4,947.2 points.
On the Sydney Futures Exchange, the March share price index futures contract was down 16 points at 4,912 points on volume of 18,391 contracts.
RBS Morgans private client adviser Craig Walker said the best performing sector on Wednesday was resources, with miners BHP Billiton, Rio Tinto and Fortescue Metals rising as investors become more positive about future increases in iron ore prices.
Mr Walker said that on the negative side, the major banks were mixed after an adverse report from Morgan Stanley.
"Those two sectors have probably balanced each other out and that's why you see the (S&P/ASX200) index only up one-and-a-half points,'' Mr Walker said.
Mr Walker said investors were still quite bullish on the commodities theme and the relationship between the Australian and US dollar.
"The themes that we ended the last calendar year with are continuing,'' he said.
Among the major banks, National Australia Bank shed 54 cents to $27.21, Commonwealth Bank firmed 28 cents to $55.98, ANZ sagged 34 cents to $22.66, and Westpac was off 12 cents at $25.39.
In the resources sector, BHP Billiton was up 54 cents at $43.82 as it said the Antamina mine in Peru would get a $US1.3 billion ($1.43 billion) expansion.
Rio Tinto ascended $2.23 to $78.58, and Fortescue surged 60 cents, or 13.04 per cent, to $5.20.
IronClad Mining was six cents richer at $1.14 after it appointed a marketing manager and a consultancy group to handle government approvals for its planned first iron ore mine.
Kagara firmed two cents to $1.11 as it said the first ore from the Lounge Lizard nickel sulphide joint-venture with Western Areas NL had been mined.
Oil and gas producer Woodside Petroleum lifted 43 cents to $48.40, and Santos rose 11 cents to $14.61.
National carrier Qantas Airways scraped off one cent to $2.95 as Qantas subsidiary Jetstar said its alliance with Malaysia-based low-cost carrier AirAsia could potentially save hundreds of millions of dollars and result in lower fares.
In the gold sector, Newmont nudged up one cent to $5.29. Newcrest was steady at $36.72, and Lihir picked up five cents to $3.40.
The price of gold in Sydney was $US1122.775 per fine ounce, down $US1.025 on Tuesday's closing price of $US1123.80.
In the media sector, News Corp was 17 cents richer at $17.80, and its non-voting stock added 24 cents at $15.37.
Consolidated Media improved five cents to $3.04, and Fairfax eased 1.5 cents to $1.745.
Radio broadcaster Austereo advanced three cents to $1.69 as it appointed a new chief executive.
Retailer Woolworths was five cents poorer at $27.91, and Wesfarmers, which owns Coles, was 47 cents lower at $31.20.
Womenswear retailer Speciality Fashion Group jumped 16.5 cents to $1.57 after it upgraded its first half profit forecast.
