MELBOURNE: Australian shares steadied on Wednesday, though the upside was limited as top miner BHP Billiton slipped 0.8 percent after it reported its first half-year fall in profit in two years.
BHP, the world's biggest miner, was down 30 cents at A$37.65 after it reported profit before exceptionals fell to $9.94 billion for July-December from $10.7 billion a year ago, roughly in line with an average forecast of $10.0 billion. .
"The results are considerably lower than I was expecting and it seems to be across the board," said Mark Taylor, senior resources analyst at Morningstar. "Some of the prices have come off and there is a lag between when you get the benefit on the cost side," he said, referring to savings from lower materials costs.
The benchmark S&P/ASX 200 index was up 7.2 points at 4,281.4 by 0223 GMT. The index fell 0.5 percent on Tuesday after central bankers surprised investors by defying expectations for an easing, instead keeping rates on hold.
The index is still up 5.5 percent for 2012.
"The market's had a very good start to the year. We've shrugged off the decision yesterday by the Reserve Bank to keep rates on hold which sent the Aussie dollar higher," said Karara Capital dealer Phillip Weinberg.
"That's going to impact on sectors of the economy, it's going to hurt banks and it doesn't help retail or manufacturing. But overall our market is well positioned."
Unresolved discussions on a bailout package for Greece are deterring investors from making big bets.
"Until it gets over the line nobody can be too sure but it certainly does seem as though they are making some progress and a deal could be imminent. Once that happens it should give investors confidence in the market," said Weinberg.
New Zealand's benchmark NZX 50 index eased 2 points to 3,3313.2.
STOCKS ON THE MOVE:
* Investment bank Macquarie Group recovered after a profit warning earlier this week, to be up 3.8 percent at A$26.89. Analysts said the stock was supported by the prospect of a share buy-back, which is awaiting regulatory approval, and some recovery in capital markets.
"The market appears to be increasingly willing to look beyond near-term earnings momentum," said a report from analysts at Merrill Lynch.
Gunns shares surged 80 percent after it agreed a deal to raise about A$280 million ($302.6 million). The woodchipper agreed to issue new shares to New Zealand billionaire Richard Chandler, head of Singapore-based Richard Chandler Corp, in a rights issue of 1.3 new shares for every one share. The proceeds will be used to reduce the company's debt, Gunns said.
The stock was later up 40 percent at A$0.175.
Qantas Airways rose 1 percent to A$1.637 depite news it grounded one its flagship Airbus A380 aircraft for up to a week after engineers found dozens of cracks in its wings during detailed inspections following a flight hit by turbulence.
Rio Tinto Ltd was down 0.3 percent to A$70.82. The miner said it would invest a further $3.4 billion in its Pilbara expansion, including Cape Lambert port and rail early works.
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