But a surprise announcement in late trade by the South Australian government of a state-based version of the federal government's bank levy took some of the shine off the major lenders' gains. Westpac, which owns Bank of South Australia, was the most obviously affected. The bank still closed the day up 1.4 per cent, but in late trade had been on track for an advance more in the order of 2.4 per cent.

Notably among financials, QBE Insurance managed to claw back some of Wednesday's plunge following an earnings downgrade, recovering by 1.3 per cent on Thursday. Fellow insurer Suncorp added 1.5 per cent.

Resources stocks were well supported, with miners the standout as a continuing rout in global oil prices kept investors wary of energy names. Rio Tinto added 0.6 per cent and Fortescue 3.8 per cent, while gold miners were among the day's best performers, as Newcrest Mining climbed 1.5 per cent.

Oil and gas producers recorded some tentative gains despite the Brent crude global benchmark slipping below $US45 a barrel for the first time since November and sliding further through Thursday's trade to fetch $US44.79 by late afternoon. Woodside Petroleum moved 0.1 per cent higher, while Oil Search and Origin Energy climbed around 2 per cent.

Since oil's most recent peak on April 11, the day-by-day falls in energy stocks has been "almost relentless", Credit Suisse analysts Mark Samter wrote in a note to clients.

"Perhaps it is an indictment on where valuations were before, but even after the sector has fallen around 13 per cent in the past month or so, it isn't like the sector is screaming value," Samter said.