The market traded flat for the start of the week before heading lower over Thursday and Friday with a number of large companies reporting.
The big loser was Woolworths falling 13% this week after reporting that it expects that profits will be 35% next year as they intend to spend $500 million increasing their market share.
Both ANZ and NAB fell this week, although both posted increased profits they were below expectations.
The market did not hit Westpac as hard this week after announcing a rights issue.
There is a lot of talk about interest rates and the Reserve Bank decreasing them next week. It is my expectation that rates will be left on hold. Banks have already started to increase rates on their own and a further decrease will be negative for our exchange rates.
Inflation is low priming the media to talk about rate cuts however I do not think given the current interest a further rate cut will stimulate the economy.