Rising energy and materials stocks have lifted the Australian share market to its highest level in almost a month.

A strong rally by Telstra and gains by retail and insurance stocks have driven the share market to another modest gain.

The share market has posted a second straight day of little movement as investors ponder the uncertainty of Donald Trump's US presidency.

Strong gains in energy and financial stocks weren't enough to push the share market into positive territory, with the benchmark S&P/ASX 200 closing flat.

After a poor start, the Australian share market retraced some of its early losses but still closed slightly lower.

Australian shares finish lower after the two major banks trade ex-dividend and as investors take profits after the Trump-led rallies last week.