The Australian stock market has closed virtually flat, shrugging off a 12-year high in the unemployment rate.
The nation’s jobless rate was expected to remain steady at six per cent, but it jumped to 6.4 per cent in July – its highest level since August 2002.
While the market initially responded negatively to the jobs data, it rebounded into the session.
OptionsXpress market analyst Ben Le Brun said investors were buying in as they speculated whether there was scope for another Reserve Bank interest rate cut.
“At the end of the day, it was probably a positive for the Australian share market,” Mr Le Brun said.
“But some of these data prints can be a double-edged sword.”
Financial stocks were the largest losers on Thursday as all big four banks ended the day in the red.
Commonwealth Bank lost 36 cents to $81.35, NAB fell 18 cents to $34.45, ANZ slipped 13 cents to $32.85 and Westpac dropped two cents to $33.65, according to preliminary figures.
Financial services company FlexiGroup was one of the bright spots in the sector, gaining eight cents to $3.85 despite reporting a drop in profit for fiscal 2014.
Rio Tinto lifted 50 cents to $66.32 after reporting a $4.4 billion first-half net profit while BHP gained 15 cents to $38.47 and Fortescue put on three cents to $4.72.
After the market closed, Rio announced it had more than doubled its half year net profit to $US4.4 billion ($A4.76 billion)
Natural gas company Envestra ended the day up 3.5 cents at $1.315 after its biggest shareholder backed a $2.4 billion takeover bid by a Hong Kong consortium.
It was also one of the most traded shares on the market, with just shy of 17 million equities changing hands.
Tabcorp closed 11 cents higher at $3.56 after it lifted its full year profit by three per cent.
KEY FACTS
* On Thursday at 1615 AEST, the benchmark S&P/ASX200 index was down three points, or 0.05 per cent, at 5,509 points, according to preliminary figures.
* The broader All Ordinaries index was down 3.3 points, or 0.06 per cent, at 5,500.7 points.
* At 1615 AEST the September share price index futures contract was down 12 points at 5,446, with 24,873 contracts traded.
* National turnover was 2.1 billion shares worth $4.7 billion.
