THE share market finished marginally higher as a weaker Commonwealth Bank and energy stocks weighed heavily on the market.
The benchmark S&P/ASX200 index was up 10.6 points, or 0.3 per cent, at 3581.2, while the broader All Ordinaries index gained 6.7 points or 0.19 per cent, to 3521.7.
Shares in Commonwealth Bank slumped to their lowest level in almost six years after the country's biggest lender finalised a $2 billion raising of capital underwritten by UBS, of which $1.65 billion was replaced on Wednesday.
"The capital raising and increase in bad debt provisions has attracted significant attention from the brokers, with a number of downgrades coming across the wire,'' IG Markets research analyst Ben Potter said, describing the capital raising as "bungled''.
CBA's shares plunged 9.09 per cent, to $26.50.
NAB head of Australia operations Ahmed Fahour has apparently lost his position after group chief executive designate Cameron Clyne decided to combine the roles.
"At their AGM this morning, NAB reiterated their expectations for slowing volume growth and rising bad debt provisions given the slowing global economy,'' Mr Potter said.
NAB shares jumped 50 cents to $19.82.
ANZ said it planned to take advantage of opportunities offered by the financial crisis as it seeks to grow its business in Asia and become a "super regional bank''.
Shares in ANZ rose 57 cents to $14.27.
Westpac gained 22 cents or 1.4 per cent to $15.94.
The big miners were mixed.
Rio Tinto was down 32 cents to $40.00 and BHP Billiton gained 5 cents to $31.00.
BHP Billiton said in a letter to shareholders that it would focus on expanding existing mines rather than new developments in nations where it had not yet operated during the current economic uncertainty.
"Moody's downgraded Rio's senior unsecured debt to Baa1 from A3, saying that the downgrade captures increased financial risk linked with the firm's Alcan debt and limited progress with asset disposals,'' Mr Potter said.
Energy stocks were in deep negative territory at the close.
CommSec market analyst Savanth Sebastian said the energy sector was weaker despite the Organisation of Petroleum Exporting Countries saying it would slash its output by seven per cent - its biggest yet production cut.
He said the cut did not necessarily mean oil producing nations would comply with the directive.
The price of crude oil fell below $US40 a barrel in New York overnight before closing at a four-and-a-half year low.
Woodside Petroleum was down 6.08 per cent at $33.81, Santos shed 55 cents to $14.10 and Oil Search slumped 4.87 per cent to $4.49.
The spot price of gold in Sydney was $US864.25 per fine ounce at 1624 AEDT, up $US13.65 on Wednesday's close of $US850.60.
Gold stocks were mixed.
Newcrest was up 2.74 per cent at $30.36, Newmont fell 10 cents to $5.60 and Lihir Gold gained 7 cents to $2.74
Making headlines, Australia's largest general insurer IAG has agreed to sell its mass market distribution business in the UK for £73.5 million ($162.8 million) to concentrate on profitable units there.
Shares in IAG were up 10 cents to $4.10.
On the Sydney Futures Exchange at 4.18pm (AEDT), the March share price index contract was 4 points higher at 3585 on a volume of 28,448 contracts.
The March contract replaces the December contract, which expired at 12.00pm.
The December share price index futures contract settled 74 points lower to 3504 points on a volume of 7048 contracts.
