THE Australian share market has broken an eight-day losing streek, but only just despite the resolution of the mining tax issue.
The benchmark S&P/ASX200 index was up 1.2 points, or 0.03 per cent, at 4,238.7 points, while the broader All Ordinaries index was up 2.2 points, or 0.05 per cent, at 4,264.9.
The resolution of the mining tax stoush between the federal government and mining companies managed to offset investor concern about the lack of strength in the global economic recovery, analysts say.
On the Sydney Futures Exchange, the September futures contract was 17 points higher at 4,232 points, on volume of 30,820 contracts.
For the week, the All Ordinaries lost 3.93 per cent, and that follows a 2.93 per cent drop in the previous week.
Shaw Stockbroking senior dealer Jamie Spiteri said the support for resources stocks after the mining tax announcement waned through the day, leading to the market's flat closing.
``Despite the fact that it does give a little bit more clarity on the impact of the mining tax across the resources sector, it still highlights the fact that you've got political intervention in a very significant component of the Australian economy, and also one of the major growth components of the Australian economy,'' he said.
Locally, major mining shares lost their early gains, while smaller companies closed mixed.
Rio Tinto gained 20 cents to $65.30, BHP Billiton lost two cents to $37.09 and Fortescue Metals added eight cents to $4.08.
Macarthur Coal lost 18 cents to $12.12, Iluka Resources lost one cent to $4.67 and OZ Minerals was steady at $1.00.
Energy stocks were also affected by the changes to the mining tax, with the current petroleum resource rent tax regime extended to all onshore oil and gas projects including coal seam gas, but at a 40 per cent tax rate.
Woodside Petroleum lost $1.03, or 2.45 per cent, to $41.00, Santos shed 14 cents to $12.22, Oil Search dropped six cents to $5.37, Origin Energy added 21 cents to $14.83 and Arrow Energy gained six cents to $4.86.
Mr Spiteri said the major banks were sold off late in the session on reports Bank Of China may look to raise funds through a share sale, which would possibly put a drain on cash in the region.
ANZ, which is focused on Asia for growth, was the worst affected among the big four banks, losing 22 cents to $20.86.
National Australia Bank added three cents to $23.06, Westpac gained 15 cents to $20.96 and Commonwealth closed 26 cents higher at $47.73.
Gold stocks fell heavily, in line with the plunging gold price.
At 1636 AEST the spot price of gold in Sydney was $US1,208.70, down $US31.81 from $US1,240.51 per fine ounce on Thursday.
Newcrest Mining lost $1.13, or 3.19 per cent, to $34.24 and Lihir Gold shed 13 cents, or three per cent, to $4.20
The highest traded stock by volume was Telstra, with 77.2 million shares traded for $242.7 million.
Telstra shares lost five cents, or 1.57 per cent, to $3.13.
Preliminary market turnover was 1.54 billion shares exchanged for $4.6 billion with 547 up, 396 down and 316 unchanged.
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