The Australian share market closed flat after disappointing jobs data prompted a selloff ahead of economic news from China and the US.
The benchmark S&P/ASX200 index closed up 4.6 points, or 0.11 per cent, at 4,188 points, while the broader All Ordinaries index rose 6.9 points, or 0.16 per cent, to 4,269.8 points.
On the ASX 24, the September share price index futures contract was 13 points lower at 4,183 points on volume of 39,448 contracts.
The Australian market opened 0.7 per cent higher on Thursday as investors took their cues from a positive finish on Wall Street and a cautiously upbeat assessment on the US economy from the Federal Reserve.
The bourse held on to those gains through the morning but investors sold out of stocks late morning when the latest labour force report showed the unemployment rate rose to a 10-month high of 5.3 per cent in August.
The Australian Bureau of Statistics (ABS) showed the economy lost 9,700 jobs in that month, which pushed up the unemployment rate.
“People thought the jobless rate would stay stable at 5.1 per cent,” RBS Morgans private client adviser Craig Walker said.
“So that news was probably a little disappointing.”
CMC Markets chief market strategist Michael McCarthy said below-average trading volumes demonstrated a lack of conviction in the market after a combination of positive GDP figures released on Wednesday and disappointing unemployment data on Thursday.
“With the global news that’s been driving (the) selling of markets abating a little overnight, we’ve been left to our own devices and essentially we’ve been caught between the numbers,” he said.
Local players poured into energy stocks on Thursday after oil prices rose during offshore trading.
The sector was up 0.81 per cent according to Iress data, led by Oil Search, which was the second best-performing company on the S&P/ASX50 having climbed 1.99 per cent, or 12 cents, to $6.14.
Fellow oil and gas producer Santos advanced six cents to $11.56.
The strongest stock in the top 50 was Leighton Holdings, which ended the day 53 cents, or 2.9 per cent, higher at $19.13.
The industrial sector was 0.45 per cent firmer, and typically defensive sectors utilities and health care, were also stronger.
Financials ended the day 0.03 per cent lower.
BHP Billiton was down six cents at $38.17 and fellow mining giant was up 70 cents at $71.30.
Iron ore miner Atlas Iron was down four cents at $3.70 after it declared its all-scrip $240 million takeover offer for fellow iron ore miner FerrAus Ltd unconditional.
FerrAus was down one cent at 92 cents.
Mr McCarthy said there was no clear trend to trading as investors paused ahead of the announcement of China’s consumer price index on Friday and US President Barack Obama’s speech about jobs after the market closed on Thursday (Australian time).
The closing price of gold in Sydney was $US1,845.40 per fine ounce, up $US6.65 from Wednesday’s local close at $US1,838.75.
National turnover was 2.44 billion shares changing hands for $5.37 billion.
Some 609 stocks were higher, while 417 lower and 341 steady.