Australian shares flat as banks slip, miners dig in

Sigange for the major banks (file images)
ANZ was the only one of the major banks to avoid losses during trading on the ASX. -AAP Image

The Australian share market has recovered from morning losses to finish flat as a rotation out of banking stocks and into the iron ore giants continues.

The benchmark S&P/ASX200 index on Thursday finished down 1.9 points, or 0.02 per cent, to 8,595.8, while the broader All Ordinaries gained 4.9 points or 0.06 per cent, to 8,833.6.

Thursday's close was still the highest ever for the All Ordinaries and the second-highest for the ASX200, behind Wednesday's figure.

The Australian dollar was buying 65.72 US cents, from 65.75 US cents at 5pm on Wednesday.