* Shares fall on losses in banks, telcoms
* Energy and resources shares buoyant
* Index gained over 5 pct in last 5 sessions
* 115 shares down,73 up, 12 unchanged (Adds analysis, quotes, stocks on the move)
By Swati Pandey and Cecile Lefort
SYDNEY/WELLINGTON, Oct 7 (Reuters) - Australian shares ran out of steam after a bold start to the week, falling 0.2 percent on Wednesday, hurt by banks and telecom stocks although buoyancy in resources and energy-related sectors helped curb steep losses.
The S&P/ASX 200 index .AXJO fell 7.9 points to 5,159.5 by 0127 GMT, giving up early intraday gains of as much as 0.5 percent. The benchmark was already showing signs of fatigue on Tuesday, when it came off a near one-month peak to close a mere 0.3 percent higher. It soared 2 percent on Monday.
The index gained more than 5 percent over the last five sessions to Tuesday's close, after hitting a two-year trough late last month. It will likely end the year at 5,200 points - marking its first annual loss since 2011, according to a Reuters Poll.
"Yesterday's fade from the early highs was suggestive that the bulls have momentarily run out of puff and we're seeing confirmation of that today," said Chris Conway, head of research at Australian Stock Report.
"This morning's pop higher was a little surprising, given the mixed leads from the overnight session, so where the market is now is probably where I expected it to be."
U.S. stocks fell on Tuesday, ending a five-day winning streak while Asian stocks were firm on Wednesday helped by a sharp rebound in oil prices.
Top miners BHP Billiton (LONDON:BLT) BHP.AX and Rio Tinto (LONDON:RIO) RIO.AX were up 1.1 percent and 2.3 percent respectively. Energy firms Santos STO.AX , Woodside Petroleum WPL.AX and Beach Energy BPT.AX jumped 3-8 percent.
Asset management firms such as Perpetual PPT.AX and Platinum PTM.AX led the losses falling 3 and 4.5 percent each.
Major banks all traded in the red with Commonwealth Bank CBA.AX down 1.1 percent and Westpac WBC.AX off 0.7 percent. Leading telco Telstra TLS.AX was down 1.1 percent.
New Zealand's benchmark NZX 50 index held gains on Wednesday, having rallied 0.7 percent in the last session. It was up 0.1 percent or 6.84 points to 5,674.27.
Stocks in the health care and technology and sectors were the biggest gainers. Orion Health Group OHE.NZ rose around 3 percent, having briefly touched a one-month peak on Tuesday when it was awarded a U.S. Defence subcontract.
Software developer Xero XRO.NZ leapt to around 4 percent to an eight-week peak.
Energy stocks came under pressure with Mighty River MRP.NZ dropping 1.2 percent, the lowest in one year.