The S&P/ASX200 fell 0.4 points on Thursday, down less than 0.01 per cent, to 8,840.7, as the broader All Ordinaries rose 2.3 points, or 0.03 per cent, to 9,036.9.
BHP weighed heavily on the bourse with a 2.3 per cent drop after its copper guidance missed forecasts, but a resurgent banking sector helped cap the losses.
"It was a little bit dull, to be frank, and disappointing too as we had positive leads, but that weight on the market from BHP's production report has really spread." Moomoo market strategist Michael McCarthy told AAP.
"When things are looking really grim, Australian banks are in favour and when growth prospects are excellent, miners are in favour, but mixed days of bottom-up sunshine and top-down rain make it very hard for the Australian market to go ahead."
The energy and mining sectors were the main drags on the exchange on Thursday, each falling more than 1.5 per cent, as oil and most metals prices lost ground.
Oil prices slipped below $US85 a barrel, in what has been a subdued market reaction to renewed hostilities between the US and Iran.
"With the big rundown in inventory from the first outbreak on the 28th of February, the world simply doesn't have the buffer that it had then," Mr McCarthy said.
"I would suggest the biggest risk to markets is much higher oil prices than current, and its inflationary impact driving interest rates higher everywhere."
Gold miners were lower as the precious metal eased almost one per cent to $US4.024 ($A5,752) an ounce
CommBank led the big four banks higher with a more than 1.8 per cent rally to $173.13, its best price since May, after raising its stake in mortgage broker aggregator Australian Finance group to 5.1 per cent.
Consumer discretionary stocks and the communications segment also notched gains of 1.1 per cent, with good leads from Wesfarmers, Eagers Automotive and REA Group.
In company news, Perpetual received an improved takeover offer from Swedish private equity group EQT.
Coles will appeal a competition watchdog decision to reject a planned second supermarket and liquor store at a mining hub in Kalgoorlie.
Shares in financial services former giant AMP rocketed more than nine per cent higher after a strong earnings update, the company now targeting an underlying post-tax net profit of up to $180 million for the first half, up from $131 million in the prior corresponding period.
The Australian dollar is buying 70 US cents, up from 69.86 US cents as a softer US interest rate outlook subdues the greenback after its recent surge on safe-haven buying.
ON THE ASX:
* The S&P/ASX200 fell 0.4 points to 8,840.7
* The broader All Ordinaries rose by 2.3 points, or 0.03 per cent, to 9,036.9
One Australian dollar trades for:
* 70 US cents, from 69.86 US cents at 5pm AEST on Wednesday
* 113.47 Japanese yen, from 113.32 Japanese yen
* 61.03 euro cents, from 61.12 euro cents
* 51.69 British pence, from 52.09 pence
* 119.52 NZ cents, from 120.11 NZ cents
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