The Australian sharemarket closed lower on Thursday as energy stocks slumped following the collapse of a takeover bid for Santos, while investors also digested weaker domestic jobs data and a cautious U.S. Federal Reserve outlook overnight.
The benchmark S&P/ASX 200 Index slipped 73.3 points or 0.8% to 8,745.2, with nine of the 11 sectors finishing in negative territory.
Energy stocks led declines, with Santos tumbling 11.9% after a consortium including Abu Dhabi National Oil Company, Abu Dhabi Development Holding Company (ADQ), and private equity group Carlyle abandoned its bid for Australia’s second-largest oil and gas producer.
Woodside Energy dropped 6.3%, while Beach Energy shed 4.5%.
Companies with significant exposure to the U.S. also came under pressure after the Fed signalled a measured approach to further rate cuts.
Transurban slid 2.3%, Brambles fell 1.6%, and James Hardie dropped 2.2%.
On the economic front, fresh data from the Australian Bureau of Statistics showed employment fell unexpectedly in August, with 5,400 jobs lost versus a gain of 22,000 expected.
However, the unemployment rate remained steady at 4.2%, as part-time workers replaced full-timers in the workforce.
On the bond markets, yields fell as investors sought safety. The 10-year bond yield eased 0.7% to 4.196%, while the 2-year yield dropped 1.4% to 3.332%.