Australian shares have risen for the fourth week in a row despite a mixed performance from the banks as the biggest miners remained resilient in the face of falling commodity prices.
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The S&P/ASX 200 Index added 0.4 per cent over the past five sessions to close the week at 5549.1 points.
On Friday, the market added 0.8 per cent, as Commonwealth Bank of Australia and BHP Billiton rose in tandem.
On Tuesday, the Reserve Bank of Australia elected to keep the cash rate at its record low 2.5 per cent for the 15th month in a row. Economic indicators released over the week were mixed with an unexpected blow-out in the trade deficit, a welcome spike in retail sales and a rise in the unemployment rate.
"The domestic economy is set for a slow grind. Aside from strength in the housing and mortgage market there is no reason at present for the RBA to change their view that rates are still on hold for a considerable time," Australian Ethical portfolio manager Mason Willoughby-Thomas said.
The big four lenders were split in the week that concluded bank reporting season.
CBA jumped 2.8 per cent to $82.76 over the week having delivered a record first quarter profit of $9.5 billion on Thursday. Westpac Banking Corp, which handed down its full-year results on Monday, rose 0.2 per cent to $34.84.
ANZ Banking Group fell 1.9 per cent to $32.88, and National Australia Bank slipped 5.1 per cent to $33.22, as both traded ex-dividend on Friday.
Schroders head of Australian Equities Martin Conlon reckons NAB is the best pick of the big four bank stocks. "With NAB still lagging the market capitalisation of CBA by nearly $50 billion, despite a similar asset base, it is here that we believe the greatest opportunity lies," Mr Conlon said.
Resources giant BHP Billiton rose 1.6 per cent to $34.49 over the week, while main rival Rio Tinto added 0.5 per cent to $60.70.
Smaller resource producers struggled against a backdrop of weak commodity markets. The spot price for iron ore, landed in China, fell 4.4 per cent over the week to a five-year low of $US75.38 a tonne, while Brent crude oil tumbled 4.1 per cent to a nearly four-year low at $US82.34 a barrel.
Gold stocks also came under pressure as the precious metal's spot price dipped almost 3 per cent to a four-and-a-half year low at less than $US1135 per ounce. Australia's biggest goldminer, Newcrest Mining, fell 5.7 per cent to $8.79. Junior producer Resolute Mining was the worst-performing stock in the ASX 200, dropping 13.5 per cent over the week to 22.5¢.
Consumer staples was the worst-performing sector for the week as Woolworths shed 4.2 per cent to $34.48 after the supermarket giant showed its weakest quarterly sales and volume growth in more than a decade. Main rival Wesfarmers, owner of Coles, rose 1.5 per cent to $44.80.
Utilities and telecommunications were the strongest sectors over the week as investor sentiment turned defensive. Telstra Corporation strengthened 2.5 per cent to $5.77, while AGL Energy added 2 per cent to $13.86.
Television broadcaster Ten Network was the best-performer, climbing 17.4 per cent to 27¢ on the news it has appointed advisers to engage with a joint takeover offer from Discovery Communications and Foxtel.
In currency markets, the Australian dollar lost around 2.7 per cent, falling to its weakest level since July 2010, Shortly after the ASX closed on Friday the dollar was fetching US 85.54¢. Offshore earners receiving a boost from the weaker currency included Amcor and Brambles.
