The share market has been boosted by mining and energy stocks, but investors are still looking for something to provide more significant drive.
After a wild ride during the trading session, the market managed a small gain, OptionsXpress market analyst Ben Le Brun said.
The benchmark S&P/ASX 200 breached 5,400 points before tumbling in mid-morning trade, and then slowly recovered.
“A little bit of no confidence there to go above it (5,400 points) at this stage,” Mr Le Brun said.
A rise in oil prices boosted energy stocks and BHP Billiton, which also has oil and gas operations, he said.
Also, the price of iron ore may be showing signs of stabilisation despite being softer.
Mr Le Brun said investors would feel more encouraged if companies were lifting their earnings expectations.
In the absence of that, investors are looking at macro-economic factors, such as another possible cut to interest rates by the Reserve Bank.
BHP Billiton gained 51 cents, or 2.7 per cent, to $19.41, Rio Tinto added 45 cents to $45.48 and Fortescue Metals was six cents higher at $2.96.
Oil and gas producer Woodside Petroleum rose 56 cents to $27.71 and Santos climbed 21 cents, or 4.9 per cent, to $4.49.
National Australia Bank dropped 12 cents to $27.36, while ANZ picked up 26 cents to $25.54, Westpac added 31 cents to $30.75 and Commonwealth Bank closed 20 cents higher at $78.59.
Wesfarmers was sold off for a second straight day after announcing around $2 billion in writedowns and restructuring costs related to its Target business and Queensland coal mine.
It dropped $1.50 to $40.40, amounting to a near four per cent fall in two days.
KEY FACTS:
* On Thursday, the benchmark S&P/ASX 200 index was up 15.6 points, or 0.29 per cent, at 5,388.1 points.
* The broader All Ordinaries index was up 15.1 points, or 0.28 per cent, at 5,451.9 points.
* The June share price index futures contract was up 25 points at 5,393 points, with 29,265 contracts traded.
* The spot price of gold in Sydney at 1700 AEST was $US1,228.70 per fine ounce, up $US4.70 from $US1,224.00 on Wednesday.
* National turnover was 2.8 billion securities traded, worth $5.5 billion.
