The benchmark S&P/ASX200 index on Thursday finished up 1.6 points, or 0.02 per cent, at 8,724.5, while the broader All Ordinaries lost half a point to finish at 8,930.9.
IG analyst Tony Sycamore said 4the ASX200 had dropped 66 points at the open to a three-week low of 8656.20.
Then fresh buying, likely for the start of the new financial year, entered the market and helped it claw back all of its early losses, Mr Sycamore said.
Despite the flat finish just two of the ASX's 11 sectors finished in the green - health care and financials.
The latter rose 1.2 per cent following a rough session on Wednesday.
All of the big four retail banks rose, NAB the most, climbing 3.8 per cent to $38.41.
Westpac added 2.2 per cent to $35.46, ANZ climbed 0.9 per cent to $34.79 and CBA grew 0.3 per cent to $161.14.
In the heavyweight mining sector, goldminers rose as the precious metal rebounded to $US4,077 an ounce following a dip below $4,000 earlier in the week.
Evolution climbed 1.9 per cent, Northern Star grew 5.5 per cent and Newmont added 2.6 per cent.
Elsewhere in the sector, BHP lost 0.6 per cent to $59.57, Rio Tinto grew 0.3 per cent to $171.27 and Fortescue lost 1.5 per cent to $18.96.
The Australian dollar was trading for 68.94 US cents, from 68.90 US cents at 5pm AEST on Wednesday.
ON THE ASX:
* The S&P/ASX200 on Thursday rose 1.6 points, or 0.02 per cent, to 8,724.5
* The broader All Ordinaries lost half a point to 8,930.9
One Australian dollar trades for:
* 68.94 US cents, from 68.90 US cents at 5pm AEST on Wednesday
* 111.47 Japanese yen, from 112.10 Japanese yen
* 60.50 euro cents, from 60.43 euro cents
* 51.81 British pence, from 52.04 pence
* 121.40 NZ cents, from 121.46 NZ cents
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