Australia shares flat- seeking direction

(Adds comments, stocks on the move)

MELBOURNE, March 19 (Reuters) - Australian stocks struggled to make headway on Friday, with financial stocks and miners trading either side of unchanged as investors awaited a catalyst to break out of recent trading ranges.

Analysts said investors were assessing recent gains, which have nearly erased the market's January slump and returned the benchmark index JO to nearly flat for 2010.

"We're just having a pit stop before we do the hill climb," said Bell Potter Securities senior client advisor Stuart Smith.

He said the resource sector and the top global miners would drive the next leg of gains, led by BHP Billiton (ASX: BHP.ax) , even though the stock slid on Thursday when the market took a dim view of outgoing Chairman Don Argus's letter to shareholders.

"Nevertheless, I am still backing BHP and Rio (ASX: RIO.ax) to lead us, and lead the economy. There is a lot of talk about China slowing but China can't slow that much," Smith said.

BHP was up 0.1 percent at A$43.19 while Rio slipped 0.3 percent to A$76.75.

The benchmark S&P/ASX 200 index JO was up 1.8 points at 4,864.9 at 2355 GMT.

New Zealand's benchmark NZX 50 index .NZ50 fell 10.2 points to 3,210.5.

STOCKS ON THE MOVE

* Telstra Corp Ltd (ASX: TLS.ax) consolidated its rally after debate on a government plan seeking to break up the phone company was deferred until May or even June. [ID:nSGE62H0LP] The shares were flat at A$3.17.

2350 GMT

* Shares in top department store Myer MYR fell 3.4 percent to A$3.39 as the stock traded without the right to its dividend.

2345 GMT

* Shares in indebted utility Alinta Energy AEJ fell after the company was advised by its investment bankers to raise up to A$1 billion ($923 million) in equity to repair its finances, three sources with direct knowledge of the situation said. [ID:nSGE62H0LE]

The shares were down 2.5 percent at A$0.077 at 2325 GMT. (Reporting by Victoria Thieberger; editing by Balazs Koranyi)

More Quotes and Company Information:BHP BILLITON (ASX: BHP.ax)RIO TINTO LIMITED(ASX: RIO.ax)TELSTRA CORPORATION LIMITED.(ASX: TLS.ax) ... read original article
Fri 19th March 2010 - 11:13am