Australian shares ended flat on Thursday with gains in banking stocks mostly offset by losses in the energy sector as Brent crude fell to a four-year low. The S&P/ASX 200 index closed 0.09 percent, or 4.69 points, higher at 5,400.90, having rallied 1.2 percent in the previous session. Oil and gas producer Santos shed 3.1 percent to A$11.61, while Woodside Petroleum dipped 2.8 percent to A$38.47.
Some commodity fund managers believe oil prices could slide to $60 per barrel if Opec does not agree a significant output cut when it meets in Vienna later on Thursday. New Zealand's benchmark NZX 50 index eased 0.04 percent, or 2.01 points, to end at 5,455.38. Energy stocks were on the defensive ahead of an Opec meeting on whether to cut production to stem a slide in oil prices. A Gulf Opec delegate told Reuters that a consensus not to cut oil output has been reached.
"You're seeing a little bit of caution ahead of tonight's Opec meeting. You don't want to be coming in and seeing your stocks down 2 percent. People are acting first and asking questions later," said Chris Weston, an analyst at IG. Oil and gas producers such as Santos and Woodside Petroleum fell 2.9 percent and 2.0 percent respectively to A$11.63 and A$38.77.
Investors also gave mining shares a wide berth amid worries about global demand for commodities such as iron ore. BHP Billiton fell 1.1 percent to A$32.19, while Rio Tinto shed 0.4 percent to A$58.17. Leading stocks were mostly softer, but part-privatised national carrier Air New Zealand rose 4.5 percent to a seven-year high of NZ$2.32 after it said on Wednesday that second half earnings might get a solid boost from lower fuel prices. The market's biggest stock by capitalisation, Fletcher Building, was down 0.7 percent at NZ$8.14, having earlier plumbed a 17-month low of NZ$8.08.
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