Shares capped five weekly gains in a row despite a mixed day on the markets as investor confidence holds firm.
The benchmark S&P/ASX200 index ended the day down just 0.4 points at 4,566.1 points, while the broader All Ordinaries index was up just 1.4 points at 4,586.3 points.
For the week, the ASX200 was up 1.6 per cent, extending the run of weekly advances to their longest stretch since the middle of April.
Among major sub-indexes, financials were off by 0.6 per cent for the day while industrials were up 0.1 per cent and materials were 0.5 per cent higher.
What you need to know
- The Australian dollar was buying 91.6 US cents
- Asian shares were mixed after US jobs report
- Spot gold hovered at $US1197 an ounce
- Crude oil futures were steady at $US82 a barrel
- Europe's Stoxx 50 index was 0.5% in early trading
- Dow futures were up 2 at 10,637 points
- Business calendar August 9-13
The big banks recovered during the afternoon and the major miners rallied into the closing bell to finish higher.
BHP Billiton ended on its high for the day at $41.13, up 29 cents, or 0.71 per cent.
Rio Tinto ended at $73.20, up 19 cents, or 0.26 per cent, just a shade off its intra-day peak of $73.32.
RBS Morgans private client adviser Bill Bishop said it was a mixed day's trading, with the market in something of a holding pattern.
''The results here and in America aren't too bad, but the market doesn't seem to be exactly racing away buying all the stocks on the news,'' Mr Bishop said.
Financial stocks ended weaker, were off their lows at the end of trade.
ANZ was 16 cents lower at $23.05, Commonwealth Bank fell 36 cents to $52.59, National Australia Bank closed 16 cents to $25.03 and Westpac was off 23 cents at $23.62.
Wheat sparks rally
Reports from Russia that it would stop grain exports, due to its drought, sent the price of wheat futures on the Chicago Board of Trade soaring during the offshore session. A US economist predicts more gains to come.
The front-month September contract settled up 60 US cents to 7.8575 US dollars a bushel, the maximum allowable single-day rise.
Macquarie Private Wealth client adviser Helen Spencer the lift in wheat prices fuelled the rallies among wheat-linked stocks.
''It is going to be more attractive to continue to develop or increase the amount of production as a result,'' Ms Spencer said.Graincorp ended up 20 cents, or 3.24 per cent, at $6.37, while AWB finished four cents, or 3.77 per cent, higher at $1.10.
The two companies announced their intention to merge last week.
Agribusiness Elders advanced 3.5 cents, or 7.45 per cent, to 50.5 cents, while fertilizer company Incitec Pivot also benefitted, rising eight cents, or 2.37 per cent, to $3.46.
City Index senior dealer Jian Wei said the stocks were trading higher on the back of ''expectations that wheat prices would surge due to serious drought problems in Russia'', the world's third-largest wheat producer.
Gold hovers
The spot price of gold in Sydney at 1634 AEST was $US1,196.80 per fine ounce, up $US1.80 from Thursday's close of $US1,195.00.
Newcrest Mining rose nine cents to $34.50 and Lihir Gold eased one cent to $4.26.
Making news, Mirvac Industrial Trust said it expected to default on a $123.5 million debt facility as it has been forced to re-start negotiations to extend the facility's maturity date.
Mirvac Industrial was down 0.7 cents at 2.5 cents, while Mirvac Group backpedalled one cent to $1.355.
Programmed Maintenance Services said it expected offshore oil and gas opportunities to improve its second half, after earlier forecasting a slight lift in annual profit.
Programmed ended steady at $2.01.The most traded stock by volume was Telstra, with 53.67 million shares changing hands worth $176.57 million.
Telstra closed up two cents at $3.31. The company reports 2009/10 full-year earnings on Thursday, August 12.
Preliminary market turnover was 1.71 billion shares worth $4.07 billion, with 530 stocks up, 480 down and 400 unchanged.
On the Sydney Futures Exchange, the September share price index contract was two points lower at 4,535 points, with 16,862 contracts traded.
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What made news overnight
Australian Competition and Consumer Commission boss Graeme Samuel has launched a stinging attack on 'unprecedented, inappropriate' rumours about NAB's bid for AXA Asia Pacific.
To pinch the Labor Party's slogan, global miner Rio Tinto is 'moving forward', further reducing its previously debt-heavy balance sheet to mark a record result.
An industry report into private-label foods has underlined the category's growth and earnings potential for supermarket chains.
And sales of Australia's leading tea brand, Lipton Quality Black, have climbed faster than the market since the decision to use tea from sustainable plantations.
Plus, Michael West on the four - or is that five - pillars, Malcolm Maiden on News Corp's results and Harold Mitchell, who says more and more, it's a woman's world.
Offshore overnight
A surprisingly poor signal on the US jobs market sent stocks slightly lower overnight as investors remained worried about a lack of hiring.
The Labor Department said first-time claims for unemployment benefits rose unexpectedly last week, to 479,000 from a 460,000 a week earlier.
Economists had forecast new claims would fall modestly.
The surprise jump in claims suggests employers are still reluctant to create jobs, which could keep a damper on economic growth the coming months.
A stronger reading on the jobs market will come on Friday when the government releases its closely watched monthly tally of payrolls and the unemployment rate.
In other news, monthly retail sales reports showed shoppers remain skittish about spending as hiring remains scarce.
European shares closed mixed, giving up early gains after the weaker-than-expected US jobless claims figures knocked sentiment ahead of the key US employment report on Friday.
In London, the FTSE 100 index of leading shares lost 20.38 points, or 0.38 per cent, to 5365.78 points.
Dealers said there was no reaction to as-expected decisions to leave interest rates unchanged by the European Central Bank and the Bank of England, with all eyes on the US lead.
Barclays tumbled 4.66 per cent despite a 29 per cent jump in first half earnings, with investors worried by its investment bank performance.
Germany's DAX made a fractional gain of 2.25 points, or 0.04 per cent, to 6333.58 points and in Paris, the CAC 40 edged up 3.47 points, or 0.09 per cent, to 3764.19 points.
AAP, with BusinessDay