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ASX closes lower as unemployment data dims rate cut hopes

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The news: The Australian sharemarket finished lower on broad losses after a lower than expected unemployment result further dampened rate cut expectations.

The benchmark ASX 200 fell 0.52% to end at 8,753 with nine out of the 11 sectors finishing in the red.

The tech sector (-3.9%) was the biggest loser after Xero (-9%) delivered an EBITDA minus capital investment value that was 6% lower than consensus expectations in the first half of FY26, according to UBS analysts. The result otherwise largely met expectations.

NextDC (-4%) also finished lower after shareholders delivered a strike against the data centre company's remuneration report. Just 28% of proxy votes approved the pay plans, which include a $150 million bonus package aimed at retaining CEO Craig Scroggie and other senior executives.

WiseTech Global (-2.1%) and TechnologyOne (-2.5%) also finished lower.

Biggest movers:

  • DroneShield (-31.4%) – CEO Oleg Vornik has sold his entire share holdings for $49.5 million. Chair Peter James and board director Jethro Marks also sold out of their fully paid ordinary shares for $12.4 million and $4.9 million respectively.
  • Graincorp (-10.8%) – Reported a 36% drop in net profit after tax for FY25 to $40 million.
  • Sequoia Financial Group (-10.5%) – Subsidiary InterPrac Financial Planning will “vigorously” defend allegations of investment advice failings made by corporate regulator ASIC in relation to collapsed Shield Master Fund.
  • Infratil (-7.1%) – Reported a lift to first-half earnings and announced the divestment of its 20% stake in New Zealand telco Fortysouth for NZD200 million ($173 million).
  • Lithium miners – Continued to rally on an improved outlook for spodumene prices with IGO (+15.3%), Liontown Resources (+10.3%) and Pilbara Minerals (+10.2%) finishing higher. The Financial Review reported that Mineral Resources (-0.33%) founder is under investigation by the Australian Taxation Office.
  • BlueScope Steel (+3.5%) – Agreed to sell its 50% interest in Tata BlueScope Steel to its joint venture partner Tata Steel for $179 million.

Other news:

  • Mayne Pharma (+3.2%) – The Foreign Investment Review Board has unilaterally extended the statutory deadline to make a decision on Cosette Pharmaceuticals’ acquisition of Mayne Pharma to 17 November.
  • Orica (+2.5%) – Reported a 69% slide in statutory net profit after tax (NPAT) for the 2025 financial year, as previously disclosed litigation costs weighed on the result.
  • Sandfire Resources (+1.4%) – Executed a binding term sheet with Havilah Resources to develop the Kalkaroo Copper-Gold Project in South Australia and undertake regional exploration.
  • Webjet Group (+0.7%) – Posted a 7% year-on-year slide in EBITDA as a result of a decline in bookings due to “difficult macro conditions” and the impact of an ACCC infringement notice displayed on its website. Rival Flight Centre Travel Group (+7.4%) continued gaining after a Q1 update released on Wednesday.
  • Southern Cross Austereo (+0.3%) and Seven West Media (+3.7%) – Secured the go-ahead from the Australian Competition and Consumer Commission to merge.

What’s ahead:

  • The UK Office for National Statistics will release GDP data for September at 6:00pm AEDT.
  • Lendlease will hold its annual general meeting on Friday.

By Brandon How