The Australian share market’s run of gains has ended, due to mixed reactions to corporate profit reports.

Shares had posted five straight days of gains, but the market closed marginally lower on Thursday.

Lonsec senior client adviser Michael Heffernan said Telstra’s half year profit report was a standout.

Telstra shares gained four cents to $5.15 after it increased its dividend for the first time in eight years and lifted its profit by nearly 10 per cent.

However shares in most of the big banks eased after getting a boost from Commonwealth Bank’s record half year profit and dividend announcement on Wednesday.

“I think the market is just having a bit of a rest today,” Mr Heffernan said.

Jobs figures, showing a rise in the unemployment rate to 6.0 per cent, drove the Australian dollar downwards but did not greatly affect the share market, he said.

“I don’t think the unemployment figures really should have frightened the market at all,” he said.

“It is a lagging indicator.”

Although unemployment was likely to rise in coming months, the economy was improving, largely driven by the housing sector, Mr Heffernan said.

Among the major banks, Commonwealth Bank dipped 45 cents to $75.75, National Australia Bank reversed 14 cents to $34.01, Westpac weakened six cents to $32.44, but ANZ nudged one cent higher to $30.99.

Mining giant Rio Tinto was off 27 cents at $67.83 ahead of its late afternoon full year results release.

BHP Billiton added 12 cents to at $37.32.

KEY FACTS

* At the close on Thursday, the benchmark S&P/ASX200 index was down two points, or 0.04 per cent, at 5,308.1 points.

* The broader All Ordinaries index was down 1.1 points, or 0.02 per cent, at 5,318.7 points.

* The March share price index futures contract was steady at 5,263 points, with 23,854 contracts traded.

* National turnover was 1.99 billion securities worth $4.68 billion.