Stocks swing to a positive close

The local market extended its winning streak to five sessions as banks and miners staged a comeback in afternoon trade.

The information boards at the ASX in Sydney. (AAP Image/Dean Lewins)

The Australian sharemarket has ended flat as a bid on the big miners and banks through the afternoon saw early losses of 0.4 per cent erased.

At the closing bell, the benchmark S&P/ASX 200 index inched up 0.1 of a point 5,431.4, while the broader All Ordinaries index tacked on 0.5 of a point, or 0.01 per cent, to 5,519.1.

The barest of gains on the ASX 200 allowed it to extend its winning run to five sessions.

After an early sell-off, investors returned to stocks safe in the knowledge there was little on the economic agenda this week.

“Local investors face a dearth of data this week,” CMC Markets chief market strategist Michael McCarthy said.

“Instead, Japanese inflation and production numbers, and US durable goods orders, could set the economic tone ahead of China manufacturing data due at the end of the week.”

Speeches by key global central bankers will also draw attention.

In the meantime, the energy sector lagged after crude prices slumped 4 per cent at the end of last week, while high dividend-paying stocks such as telcos and banks outperformed.

South Australian oil and gas major Santos slid 1.9 per cent to $3.56, Origin weakened 0.4 per cent to $5.18 and Woodside eased 0.7 per cent to $27.13.

Despite mirroring the soft start of the broader market, the materials sector went in the opposite direction, with BHP Billiton rising 0.1 per cent to $21.55, Rio Tinto advancing 0.6 per cent to $50.38 and Fortescue bucking the trend to dip 0.2 per cent to $4.95.

The big banks ended in the black, with Commonwealth Bank’s flat showing trailing its peers and NAB’s 0.14 per cent lift outpacing its rivals.

In contrast, the insurance sector was sold off, with IAG and Suncorp both shedding around 1 per cent as investors worried about the costs associated with flooding near Forbes in central New South Wales.

Retail also disappointed, with Woolworths skidding 2.1 per cent and rival Wesfarmers losing 0.7 per cent.

Among other blue chips, Telstra ended steady at $5.19, while Qantas gained 0.3 per cent to $3.24 as it was aided by a positive broker report and softer crude prices.

Elsewhere, SAI Global shares shot up almost 30 per cent on its resumption of trade after agreeing a $1.1 billion sale at a 32.3 per cent premium.

Meanwhile, the Australian dollar barely budged from the US76.2c mark during the local session as investors waited on more clarity on US Federal Reserve policy.