The sharemarket took a slight fall on the last day of the month, but enjoyed growth in February after a solid corporate earnings season.
The ASX200 index rose by more than four per cent in the month, making up for January’s three per cent fall.
IG market strategist Stan Shamu said it had been a positive earnings season for companies, although profit growth were driven more by cost reductions than improved sales.
Friday’s slight fall for the market was driven by nervousness about China’s economy ahead of manufacturing numbers out on the weekend, and the Reserve Bank of Australia’s decision on interest rates next week, Mr Shamu said.
“Yesterday we had very disappointing private capital spending numbers after a situation when the Reserve Bank had switched to a neutral bias … how will the economy play out for the rest of the year without another rate cut?” he said.
Woolworths, which posted a higher half year profit of $1.3 billion on Friday said the outlook was good, but its shares fell 35 cents to $36.07.
Virgin Australia shares closed flat at 35 cents after being down for most of the day, after it reported a first half loss of $83.7 million as it fights to take market share from rival Qantas.
Qantas gained one cent to $1.165 amid fallout from Thursday’s news that it would axe 5,000 jobs, freeze wages, retire old planes, and slash capital spending and some routes – all to reduce costs.
Among the major banks, Commonwealth Bank dropped 54 cents to $74.66, National Australia Bank shed eight cents to $34.74, Westpac lost seven cents to $33.47 and ANZ slipped by one cent to $32.14.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was down 6.6 points, or 0.12 per cent, at 5,404.8 points.
* The broader All Ordinaries index was down 5.6 points, or 0.1 per cent, at 5,415.4 points.
* The March share price index futures contract was flat at 5,396 points, with 34,950 contracts traded.
* The price of gold in Sydney was $US1,331.50, up $US4.24 on Thursday’s closing price of $US1,327.26.
* National turnover was 2.26 billion securities worth $8.7 billion.
