SYDNEY--Australia's share market closed flat Thursday in quiet
trading before Thanksgiving holidays. Weakness in resources was
offset by strength in banks as global markets continued to ponder
the outlook for the U.S. Federal Reserve's bond-buying program.
The benchmark S&P/ASX 200 ended flat at 5334.3 after rising
to 5367.1 on a stronger-than-expected domestic capital expenditure
data.
With economists mostly expecting the Federal Reserve to maintain
the pace of its quantitative easing for the next few months,
Australian shares have consolidated in recent weeks while U.S.
equities have continued to hit fresh record highs.
"Equity markets appear to have concluded that mixed U.S.
economic data suggest a creeping pace to U.S. economic growth which
will be sufficient to keep any imminent threat of Federal Reserve
tapering at bay," said CMC Markets sales trader, Niall King.
Banks were again supported before upcoming dividend payments in
the sector, with Commonwealth Bank (CBA.AU) rising 0.9%.
Resources lost ground however, with BHP Billiton (BHP.AU) down
0.2% after copper prices fell 0.6% and crude oil slipped 1.5%
overnight.
Newcrest Mining (NCM.AU) declined 1.0% following a 0.7% fall in
spot gold.
In a positive note for Newcrest, Credit Suisse analysts said the
gold miner didn't need a capital raising, but further cost cutting
and asset sales were likely to be considered in order to shore up
its liquidity.
Qantas Airways (QAN.AU) rose 3.8% after Australia raised the
possibility of scrapping foreign ownership restrictions on the
country's national carrier.
Seek Limited (SEK.AU) jumped 5.8% after saying its Australian
trading conditions have improved. Australia's biggest online job
ads company reiterated previous guidance for a rise in fiscal 2014
revenue and profit, while predicting its domestic job-ads business
would be slightly higher than last financial year.
Car fleet management company McMillan Shakespeare (MMS.AU)
surged 9.3% after saying that trading conditions have normalized
after the repeal of proposed fringe benefit tax changes by the new
Federal Government.
Forge Group (FGE.AU) plunged 84% after the mining services
company warned of a A$127 million profit writedown in fiscal 2014
associated with its Diamantina Power Station and West Angelas Power
Station projects.
Write to David Rogers at david.rogers@wsj.com