Lower commodity prices and falls on overseas markets are causing the share market to lose ground, as investors see little reason to invest.
Slightly better than expected jobs data also had little impact on the market, reflecting the subdued investor sentiment.
The unemployment rate was steady at 5.8 per cent in May, as the total number of people with jobs fell 4,800 and the participation rate also slipped.
The unemployment rate was expected to reach 5.9 per cent in May, with 10,000 jobs added to the economy.
“There hasn’t been much of a reaction, and that’s a reflection of the current environment, there’s just no compelling reasons to buy at the moment,” CMC Markets chief strategist Michael McCarthy said.
“While we don’t see any compelling reasons to sell either, in the absence of positive momentum the market tends to drift lower.”
Mid-sized resources stocks and retailers were the worst performers.
Fortescue Metals was 16 cents lower at $4.38, Arrium was down 4.25 cents at 85.25 cents and BC Iron was 16 cents weaker at $3.35.
Shares in Mineral Resources were down 33 cents at $9.81 after it bought a 12.8 per cent stake in West Australian iron ore miner Aquila Resources, in order to be involved in the development of the West Pilbara Iron Ore Project.
Aquila shares were down eight cents at $3.53.
BHP Billiton had dropped 11 cents to $35.83 and Rio Tinto was 38 cents weaker at $59.02.
Flight Centre was down $1.44 at $44.99 after its profit downgrade on Wednesday, while Domino Pizza had shed 23 cents to $20.02 and JB Hi-Fi was nine cents lower at $17.66.
The major banks were also down, with Commonwealth Bank down 52 cents at $81.68, National Australia Bank down 14 cents at $33.49, ANZ down 13 cents at $33.77 and Westpac seven cents lower at $34.68.
KEY FACTS
* At 1215 AEST on Thursday, the benchmark S&P/ASX200 index was down 24.6 points, or 0.45 per cent, at 5,429.4 points.
* The broader All Ordinaries index was down 23.5 points, or 0.43 per cent, at 5,409 points.
* The June share price index futures contract was 29 points lower at 5,430 points, with 16,602 contracts traded.
* National turnover was 769 million securities worth $1.57 billion.
