As mentioned a couple of weeks ago we are starting to see some profit warnings coming into the market.
This week we saw The Reject Shop announce a profit downgrade, which saw its share price fall around 10%. Their announcement also leads to the view that the retail sector continues to struggle.
Only the energy, financial and property sectors managed to hold their own this week with sectors such a consumer discretionary pulling back the most.
On Friday the market touched the lows of April and May before closing at 5405 points.
As we get closer to the end of the financial year we can expect some volatility, especially on options expiry this week as the big players look to sort themselves out for the end of year reports.
What can we expect over the coming months?
At present there is not much in any government budgets handed down to push the economy in the short-term.
While job losses are continuing and employers are slow to spend on new equipment or staff.
I expect that there will be more profit guidance downgrades to come as once we tick over to July the reporting season will start again.