Strategic Minerals Share News (SML)

* Aussie shares trade flat, Fed in focus

* Synlait pushes New Zealand to record high

By Christina Martin

March 21 (Reuters) - Australian shares were little changedon Wednesday as losses in real estate firms and telcos offsetgains in resources stocks, amid wider investor caution ahead ofthe Federal Reserve's policy meeting.

The S&P/ASX 200 index crept 0.02 percent, or 1.2points, higher to 5,937.6 by 0045 GMT, paring earlier gains. Thebenchmark fell 0.4 percent in the previous session.

Materials stocks were supported by firmer iron ore priceswhile a rise in oil prices helped energy firms.

Investors awaited a near-certain interest rate hike at theend of the Fed's two-day meeting on Wednesday.

Markets have largely priced in three U.S. rate hikes thisyear, but some analysts suspect the Fed's 'dot plot' offorecasts could shift up to four and spook risk assets.

"The Fed meeting has very well been flagged, the marketpricing indicates that everybody is prepared for a rate rise,"said Michael McCarthy, Chief Market Strategist at brokerage CMCMarkets.

Australia's material sector rose as much as 1.5percent, its biggest intraday percentage gain in more than aweek, with heavyweights BHP Billiton Ltd and Rio TintoLtd gaining 1.1 percent and 0.6 percent, respectively.

"Metal prices were down but there's been a turnaround iniron-ore prices today, up by 1.5 percent. It's one of thereasons why we're seeing support for BHP and Rio; those two arethe major stocks in the material sector, lifting the sector tothe top," McCarthy said.

Financial stocks jumped as much as 0.4 percent, withthe 'Big Four' banks rising between 0.1 percent and 0.7 percent.

The energy index hit a two-week high, up as much as 1.4percent, boosted by firm oil prices. Woodside Petroleumadded 0.7 percent, while Origin Energy touched itshighest in three weeks, up 1.4 percent.

Oil prices rose on Wednesday, supported by tensions in theMiddle East and healthy global demand, although rising U.S.output from the United States continued to weigh on markets.

However, limiting gains were real estate and telecom stocks,with Scentre Group down as much as 2.3 percent andTelstra Corp dropping as much as 1.8 percent.

New Zealand's benchmark S&P/NZX 50 index rose 0.85percent, or 72.39 points, to a record high of 8,559.54, withconsumer staples leading gains.

The biggest advancer on the main index was Synlait Milk, up as much as over 17 percent to a record high afterit posted its best first-half net profit.

(Reporting by Christina Martin in Bengaluru; Editing by SamHolmes)