Australian shares have ended the day lower as Santos led a plunge in energy stocks after yet another suitor abandoned plans to buy the oil and gas giant.
The benchmark S&P/ASX200 fell 73.3 points, or 0.83 per cent, to 8,745.2, as the broader All Ordinaries lost 64 points, or 0.70 per cent, to 9,030.9.
Ten of 11 local sectors closed in the red as energy stocks tumbled more than five per cent after Abu Dhabi National Oil Company bailed out on a multi-billion-dollar Santos takeover.
"The falls came after reports emerged overnight Abu Dhabi had sensationally walked away from its $28 billion takeover bid for Santos just 48 hours before a binding, all-cash offer was due to be received by the South Australian-based company," IG Markets analyst Tony Sycamore said.
Santos shares plummeted almost 12 per cent to $6.74, while Woodside fell 6.3 per cent and Beach Energy dropped 4.5 per cent as oil prices edged lower.
The heavyweight financials (down 0.9 per cent) and materials (down 0.5 per cent) sectors also tracked lower, as CBA sold off and easing iron ore prices dragged on large-cap miners.
Commonwealth Bank shares fell more than two per cent to $164.33, their weakest close since April.
Investors took some profits in gold stocks as bullion slipped lower to $US3,635 ($A5,492) an ounce after hitting a fresh record high of more than $US3,700 overnight.
A US interest rate cut was broadly tipped to support bullion prices, but the US Federal Reserve's rhetoric and economic outlook proved less optimistic than analysts had hoped.
Australian tech was the only segment to finish higher, up 0.2 per cent, with strong performances by data centre play NextDC and tracking technology company Life360.
Health care stocks are on track for a fifth-straight week of losses as sector heavyweight CSL traded at less than $200 for the first time since May 2019.
The blood plasma giant has now lost more than a quarter ($36 billion) of its $133 billion former market value since its disastrous financial update in August.
The Australian dollar is fetching 66.22 US cents, down from 66.74 US cents on Wednesday at 5pm, after weaker-than-expected August jobs figures narrowed bets for further interest rate relief ahead.
Labour market weakness could render the Reserve Bank's measured approach to monetary policy potentially inadequate, eToro market analyst Farhan Badami warned.
"They have already delivered a 25 basis point cut, bringing rates to 3.60 per cent, but today's miss strengthens the case for more aggressive rate cuts," he said.
ON THE ASX:
* The S&P/ASX200 fell 73.3 points on Thursday, or 0.83 per cent, to 8,745.2
* The broader All Ordinaries lost 64 points, or 0.70 per cent, to 9,030.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.22 US cents, from 66.74 US cents on Wednesday
* 97.61 Japanese yen, from 97.76 Japanese yen
* 56.15 euro cents, from 56.29 euro cents
* 48.70 British pence, from 48.92 British pence
* 112.30 NZ cents, from 111.76 NZ cents
