Australian stocks overcame a weak start to finish flat on Wednesday, as market players digested positive manufacturing data from China and better than expected domestic gross domestic product (GDP) figures. The benchmark S&P/ASX200 index was down one point, or 0.02 per cent, at 4,707.3 points, after dipping below 4,700 during the day. Meanwhile, the broader All Ordinaries index fell 0.3 points, or 0.01 per cent, to 4,788.6 points, having reached an intraday low of 4,776.5 points. On the ASX 24, the June share price index futures contract was three points lower at 4,708 points, with 30,981 contracts traded.

[Sign up to get reports daily in your inbox]

Figures from the Australian Bureau of Statistics showed the local economy contracted 1.2 per cent in the three months to March 31, the largest quarterly drop in 20 years, or since 1991. The materials sector advanced 0.37 per cent on Wednesday, according to Iress data, with telecoms also among the better performers with a 0.36 per cent gain. BHP ended 17 cents higher at $44.53, while Rio rose five cents to $81.55. Fortescue Metals closed 17 cents firmer at $6.69, after the company announced Andrew Forrest would step down as chief executive and become the mining group's chairman. The miner also said it planned to bring forward its iron ore production target of 155 million tonnes per annum (mtpa) by up to 12 months.

Financial stocks were down 0.51 per cent at noon, but pared back losses after lunch to finish the day off by 0.33 per cent. ANZ fell 13 cents to $22.00, CBA eased 26 cents to $50.36, NAB slipped 41 cents to $26.07 and Westpac was 18 cents lower at $21.95. The spot price of gold in Sydney was $1,533.00 per ounce, down $2.73 from Tuesday's local close of $US1,535.73 per ounce. The most traded stock by volume was Baraka Energy and Resources, with 84.7 million securities traded for $2.0 million. Baraka was up three-tenths of a cent at 2.4 cents. The company's most recent release was an update on drilling operations at Georgina Basin on May 18. Preliminary national turnover was 2.21 million securities worth $4.8 billion, with 554 stocks up, 604 down and 381 unchanged.

The Australian dollar rose to its highest level in nearly a month Wednesday on news the economy contracted sharply in the first quarter, albeit by an amount less than many feared. Gross domestic product fell 1.2% in the first three months of 2011, compared with growth of 0.8% in the previous quarter, said the Australian Bureau of Statistics. Economists surveyed by Dow Jones Newswires forecast a first quarter contraction of 1.4% The report also showed domestic demand rose by a healthy 1.3% over the three month period, enough for the Reserve Bank of Australia to keep an interest rate increase in coming months on the table. News of stronger than expected Chinese manufacturing data in May also helped to keep support under the Aussie. China's official Purchasing Managers Index fell to an as expected 52.0 in May from 52.9 in April, marking its second consecutive month of decline. The Australian dollar was changing hands at $1.0738, up from $1.0700 late Tuesday. Against the Japanese yen, the Australian dollar was at 87.37, up from 87.175.

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Facebook.
Follow us on Twitter.