Speculation about a rate cut next week has buoyed the big banks and lifted the share market, securing a sixth consecutive week of gains.
Disappointing December quarter capital expenditure data has boosted financial market expectations for a cut when the Reserve Bank meets on Tuesday, Australian Stock Report head of research Chris Conway said.
“If they do cut, then the yield play that has been so strong recently will come firmly back into focus … and you would expect to see the banks being driven higher again,” he said.
But a disappointing half year result from Woolworths hit its shares, and those of other retailers, sending the sector lower.
“That is definitely the drag,” Mr Conway said.
Woolworth was hammered after a 3.1 per cent net profit slide led to a downgrade of its full year guidance.
Woolworths shares plummeted 9.5 per cent, or $3.24, to $30.71.
Coles owner Wesfarmers shed $1.59, or 3.5 per cent, to $43.85 and the company behind IGA, Metcash, dropped half a cent to $1.57.
Commonwealth Bank had a strong day, up $1.50, or 1.7 per cent, to $91.92, while National Australia Bank gained 28 cents to $37.90, ANZ jumped 18 cents to $35.34 and Westpac added 32 cents to $38.
The energy sector was mixed after world oil prices dropped.
Woodside Petroleum added 28 cents to $35.18 but Oil Search fell two cents to $8.16 and Santos was one cent lower at $7.94.
BHP Billiton found nine cents to $33.65, Fortescue Metals rose one cent to $2.49 and Rio Tinto gained 71 cents to $64.41.
Company financial results were mixed on the last day of the February earnings season.
Penfolds owner Treasury Wine Estates was flat at $5.43 after its half year profit dropped 60 per cent.
Harvey Norman gained seven cents to $4.42 after the retailer lifted half year profit by 27 per cent.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was up 20.3 points, or 0.34 per cent, at 5,928.8 points.
* The broader All Ordinaries index was up 20.6 points, or 0.35 per cent, at 5,898.5.
* The March share price index futures contract was 34 points higher at 5,912, with 28,134 contracts traded.
* National turnover was 2.4 billion securities worth $9.8 billion.
