Aust stocks narrow losses at close

Local market rebounds after morning slump as investors watch Ukraine developments.

The Australian sharemarket recovered morning losses to close flat as investors consider the most recent geopolitical tensions in Ukraine.

At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 edged up 9.2 points, or 0.17%, to 5,531.6 points, while the broader All Ordinaries index also inched up 9.2 points, or 0.17%, to 5,519.1 points.

CMC Markets chief market analyst Ric Spooner said the news of a Malaysian plane crash in rebel-held east Ukraine was key to trader thinking, igniting fresh geopolitical tensions.

The initial reaction was to "sell first and ask questions later", Mr Spooner said.

"However, investors are now also very conscious of the fact that low interest rates are attracting buyers back into risk assets quickly.

"Over the past 18 months, selling shares in response to potential geopolitical risk events has been a costly strategy for all but the most nimble short term traders."

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