Interdum stultus opportuna loquitur...

Tuesday, May 31, 2005

OzRant: Multiplex Gets Suplexed...

Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.

You know how sometimes you hear something about an ex-girlfriend, or an old school chum? Recently my inbox has been awash with such stuff... first the fact that my (1990-93) ex-girlfriend's mother became the local postmaster, and arrived here two weeks after I moved here... and today, that IWL (InvestorWeb) failed to get sufficient takers for its attempt to acquire fellow ticket-clippers JDV. They moved to 37%, but it seems that the two other major shareholders (RBC and WBC) have declined for now. Still, if RBC and WBC have got any sense, they will offload their stakes lickety-split, and the failure (thus far) hasn't hurt IWL's share price at all.

I've said it before - IWL's decision to join the ticket-clippers was, and remains, a strategic mistake. It's a dying industry with falling margins; it's the financial-services equivalent of textiles and footwear. The core value proposition of IWL (apart from Financial Planning Software... catering to another industry whose days are numbered) was - to my way of thinking - the provision of genuinely independent research. That has absolutely gone by the wayside with the foray into ticket-clipping, because there is no such thing as independent research from a ticket-clippery.

Note: 'ticket-clippery' not a typo... it is my new term for a den of ticket-clippers. Similar to a 'rookery', which was my nom-de-guerre for a collection of Penguins (brokerage analysts). It saddens me that the IWL analysts are now Penguins, but it's not their fault.

Major Market Indices

The broad market - the ASX All Ordinaries - fell by 19.10 points (-0.47%), finishing at 4070.40 points. The index hit an intraday high of 4098.80 (let's call that 4100) and closed right at its low. There was a sharp spike down in the last minute (clearly some index arb at the close) with the index dropping 10 points during the closing match.

Total volume traded on the ASX was 880 million units, 12.0% above its 10-day average - although that figure is muddied somewhat by the massive volume in Multiplex Group (MXG) which got massacred today after a profit warning linked to huge costs at its Wembley Stadium project. This is something that MXG's lawyers (a firm with whom I'm intimately acquainted) have known about for nigh-on six months.

Of the 483 stocks in the All Ords, 186 rose while 182 fell. Volume was tilted in favour of the gainers by a margin of 1.1:1, with 201.43 million shares traded in gainers while 189.45 million shares traded in the day's losers (MXG is not in the All Ords, if the data vendors are to be believed). Had the index arb boys not pummelled the closing matchout, the index result would have been commensurate with the evenly-balanced breadth and internals.

The Index that forms the cash basis for the SFE's Share Price Index Futures - the S&P/ASX 200 - fell by 26.30 points (-0.64%), finishing at 4106.40 points. As with the XAO, the XJO dipped hard right at the close.

The "heavy hitters" of the Australian market - the ASX 20 Leaders - fell by 23.60 points (-1.05%), finishing at 2232.90 points. Within the index members, there were 7 that rose, and 13 losers. Total volume in rising issues within the ASX20 amounted to a feeble 14.39 million shares, while volume in the losers was a more-impressive 65.38m units.

The major winners in the "big guns" were -

  • Foster's Group (FGL), +$0.06 (1.11%) to $5.46 on volume of 5.73m shares;
  • News Corporation (NWS), +$0.17 (0.77%) to $22.30 on volume of 2.09m shares;
  • St George Bank (SGB), +$0.17 (0.66%) to $26.12 on volume of 1.57m shares;
  • News Corporation (NWSLV), +$0.14 (0.65%) to $21.59 on volume of 1.06m shares; and
  • Westfield Group (WDC), +$0.09 (0.54%) to $16.90 on volume of 1.97m shares.

The following stocks made up the biggest percentage losers in the big-guns:

  • Alumina (AWC), -$0.10 (1.77%) to $5.56 on volume of 2.8m shares;
  • ANZ Banking Group (ANZ), -$0.36 (1.64%) to $21.59 on volume of 6.6m shares;
  • Coles Myer  (CML), -$0.10 (1.07%) to $9.24 on volume of 3.79m shares;
  • Amcor (AMC), -$0.07 (1%) to $6.90 on volume of 1.93m shares; and
  • Rio Tinto (RIO), -$0.41 (0.95%) to $42.83 on volume of 1.86m shares.

At the smaller end of the market's capitalisation scale, the ASX Small Ordinaries Index - the only place where underexploited value exists with any regularity - rose by 6.40 points (0.29%), finishing at 2250.80 points. The major winners in the "pop-guns" were -

  • Globe International (GLB), +$0.12 (37.1%) to $0.43 on volume of 1.86m shares;
  • Austral Coal (AUO), +$0.13 (10.48%) to $1.37 on volume of 46,000 shares;
  • Ventracor (VCR), +$0.12 (8.76%) to $1.49 on volume of 10.63m shares;
  • Vision Systems (VSL), +$0.08 (8.25%) to $1.05 on volume of 478,000 shares; and
  • Emperor Mines (EMP), +$0.02 (7.14%) to $0.30 on volume of 71,000 shares.

The losingest-little-guys for the session were (in order of decline):

  • Multiplex Group (MXG), -$0.75 (23.01%) to $2.51 on volume of 185.63m shares (update: 200mill as at 4:42p.m.) as news of its awful mismanagement of costs at its Wembley Stadium contract finally starts to bite... this is something that the lawyers have known about for ages;
  • Multiemedia (MUL), -$0.002 (11.11%) to $0.016 on volume of 10.2m shares; and
  • Miller's Retail (MRL), -$0.09 (9.66%) to $0.80 on volume of 684,000 shares;
  • Timbercorp (TIM), -$0.08 (3.78%) to $1.91 on volume of 181,000 shares; and
  • ERG (ERG), -$0.01 (3.57%) to $0.27 on volume of 1.05m shares.
Index Changes
Code Name Close +/- % Volume
XAO All Ordinaries 4070.4 -19.1 -0.47% 476.02m
XTL S&P/ASX 20 2232.9 -23.6 -1.05% 79.76m
XFL S&P/ASX 50 4061.7 -32.6 -0.8% 176.19m
XTO S&P/ASX 100 (note: 200m MXG?)
 3341.2 -23.9 -0.71% 481.75m
XJO S&P/ASX 200 4106.4 -26.3 -0.64% 395.01m
XKO S&P/ASX 300 4098.8 -25.5 -0.62% 0
XMD S&P/ASX Mid-Cap 50 3945.7 -7.6 -0.19% 0
XSO S&P/ASX Small Ordinaries 2250.8 6.4 0.29% 325.53m

All Ordinaries Market Internals

Market Breadth

XAO XJO XSO ASX20 Market
Advances 186 92 85 7 424
Declines 182 85 74 13 478
Advancing Volume 201.43m 183.68m 61.44m 14.39 336.03
Declining Volume 189.45m 168.66m 227.49m 65.38 468.29

S&P/ASX200 GICS Sector Indices

The top sector for the day was Information Technology which gained 2.49% to 379.30 points. The sector was helped by

  • Vision Systems (VSL), +$0.08 (8.25%) to $1.05 on volume of 478,000 shares;
  • Computershare (CPU), +$0.09 (1.58%) to $5.79 on volume of 1.54m shares;
  • Baycorp Advantage (BCA), +$0.04 (1.38%) to $2.93 on volume of 407,000 shares;
  • MYOB (MYO), +$0.01 (0.92%) to $1.10 on volume of 185,000 shares; and
  • Infomedia Ltd (IFM), -$0.00 (0%) to $0.54 on volume of 392,000 shares.

Second in the sector leadership stakes was Utilities which gained 0.94% to 4882.30 points. The sector leaders were -

  • Energy Developments (ENE), +$0.08 (2.17%) to $3.77 on volume of 211,000 shares;
  • Alinta (ALN), +$0.17 (1.78%) to $9.74 on volume of 3.16m shares;
  • Gasnet Australia Group (GAS), +$0.02 (0.82%) to $2.47 on volume of 78,000 shares;
  • Australian Gas Light Company (AGL), +$0.11 (0.8%) to $13.94 on volume of 1.36m shares; and
  • Pacific Hydro (PHY), +$0.01 (0.2%) to $5.06 on volume of 559,000 shares.

The bronze today went to Consumer Discretionary which gained 0.42% to 2198.70 points. The sector was led by

  • G.U.D. Holdings (GUD), +$0.23 (3.59%) to $6.63 on volume of 285,000 shares;
  • Seven Network (SEV), +$0.16 (2.29%) to $7.16 on volume of 370,000 shares;
  • Pacifica Group (PBB), +$0.03 (1.68%) to $1.52 on volume of 416,000 shares;
  • STW Communications Group (SGN), +$0.04 (1.46%) to $2.78 on volume of 512,000 shares; and
  • Billabong International (BBG), +$0.15 (1.24%) to $12.20 on volume of 2.05m shares.

The worst-performed sector today was ASX200 Financials ex Property Trusts which lost 1.22% to 5075.60 points. The sector was dragged lower by

  • Perpetual Trustees Australia (PPT), -$1.10 (1.95%) to $55.40 on volume of 108,000 shares;
  • Adelaide Bank (ADB), -$0.19 (1.71%) to $10.89 on volume of 172,000 shares; and
  • ANZ Banking Group (ANZ), -$0.36 (1.64%) to $21.59 on volume of 6.6m shares;
  • Suncorp-Metway (SUN), -$0.26 (1.31%) to $19.63 on volume of 579,000 shares; and
  • Challenger Financial Services Group (CGF), -$0.03 (0.91%) to $3.26 on volume of 3.51m shares.

Just in front of last place on the sector table was Materials which lost 1.18% to 6744.50 points. The sector was pulled down by

  • Paperlinx (PPX), -$0.10 (3.98%) to $2.41 on volume of 3.47m shares;
  • Timbercorp (TIM), -$0.08 (3.78%) to $1.91 on volume of 181,000 shares; and
  • Lihir Gold (LHG), -$0.04 (3.15%) to $1.08 on volume of 7m shares;
  • Minara Resources (MRE), -$0.06 (3.06%) to $1.90 on volume of 903,000 shares; and
  • Lion Selection Group (LSG), -$0.05 (2.59%) to $1.69 on volume of 344,000 shares.
Sector Indices
Code GICS Sector Close +/- % Volume
XIJ Information Technology 379.3 9.2 2.49% 4.29m
XUJ Utilities 4882.3 45.6 0.94% 6.39m
XDJ Consumer Discretionary 2198.7 9.2 0.42% 34.11m
XHJ Healthcare 4794.8 18.2 0.38% 20.52m
XNJ Industrials 4942 11.1 0.23% 59.96m
XPJ Property Trusts 1744.9 1.6 0.09% 268.67m
XEJ Energy 8365.1 -23.9 -0.28% 14.19m
XSJ Consumer Staples 5520.3 -36 -0.65% 34.59m
XTJ Telecommunications 1785.3 -13.5 -0.75% 16.11m
XFJ Financials 4961.8 -46.9 -0.94% 322.48m
XMJ Materials 6744.5 -80.5 -1.18% 70.2m
XXJ ASX200 Financials ex Property Trusts 5075.6 -62.6 -1.22% 55.79m

All Ordinaries Major Movers

All Ords Volume Leaders
Code Name Close +/- % Volume
MXG Multiplex Group 2.51 -0.75 -23.01% 185.63m
MIG Macquarie Infrastructure Group 3.86 0.05 1.31% 16.87m
TLS Telstra Corporation. 5.03 -0.03 -0.59% 12.97m
BHP BHP Billiton 16.70 -0.15 -0.89% 12.68m
VCR Ventracor 1.49 0.12 8.76% 10.63m
MGR Mirvac Group 3.33 0.08 2.46% 10.3m


All Ords Percentage Gainers
Code Name Close +/- % Volume
GLB Globe International 0.43 0.12 37.1% 1.86m
AUO Austral Coal 1.37 0.13 10.48% 46341
VCR Ventracor 1.49 0.12 8.76% 10.63m
VSL Vision Systems. 1.05 0.08 8.25% 478314
UNW Unwired Group 0.35 0.03 7.81% 448850


All Ords Percentage Decliners
Code Name Close +/- % Volume
PBD Port Bouvard 1.30 -0.22 -14.24% 79972
MUL Multiemedia 0.016 -0.002 -11.11% 10.2m
BCL Betcorp 0.18 -0.02 -10% 615821
MRL Miller's Retail 0.80 -0.09 -9.66% 683774
EPT Epitan 0.37 -0.02 -5.13% 441444

Elsewhere in the Region...

Japan's Nikkei 225 rose 10.26 points (0.09%) to close at 11276.59 points. The index hit a high of 11297.33 (let's call that 11300-ish, just like yesterday) just after 1 p.m., after dipping to 11221.46 points during the first half-hour of the session.

The Kiwi Market declined 8.41 points (-0.28%). the Kiwi's actually spent most of the day rallying after an early dip to 3023.282 points (the low was set right at the end of the first hour). Prior to the little dip, the index had wiggled around unchanged, with the session high of 3042.767 being achieved just before the early downdraught.

A total of 22 stocks within the NZSE50 rose, with volume in advancers totalling 25.4 million units. Decliners numbered 22, and total volume traded in losers was 13.7 million shares. Evenly-distributed advance-decline stats, but moderately bullish individual volume breakdown. Odd. Individual stocks that were soft included...

  • Fletcher Building (FBU), -NZ$0.23 (3.55%) to NZ$6.25 on volume of 1m shares;
  • Air New Zealand L (AIR), -NZ$0.04 (2.67%) to NZ$1.46 on volume of 146,000 shares;
  • AMP NZ Office Trust (APT), -NZ$0.02 (2.2%) to NZ$0.89 on volume of 172,000 shares;
  • Waste Management (WAM), -NZ$0.13 (2.07%) to NZ$6.16 on volume of 261,000 shares; and
  • Port Of Tauranga (POT), -NZ$0.09 (1.88%) to NZ$4.70 on volume of 49,000 shares.

Hong Kong's Hang Seng index advanced 55.16 points (0.40%). Like most of the regional indices, the index dipped shortly after the open, setting its session low of 13779.8 points in the first half hour. From there it was a pretty dynamic session leading into lunch, with the Hang Seng rising just over 150 points to its high of 13932.92 before lunchtime (the high was set ten minutes before the midday gong).

Within the Hang Seng, 17 index components rose, while 8 stocks fell. Volume in the gainers in Hong Kong's big-cap index totalled 104.6 million units, and total volume traded in losers was 39.2 million shares. Individual stocks that contributed to the advance included...

  • MTR Corporation (0066), +HK$0.40 (2.87%) to HK$14.35 on volume of 7.02m shares;
  • China Mobile (0941), +HK$0.60 (2.16%) to HK$28.35 on volume of 19.85m shares;
  • Lenovo Group (0992), +HK$0.05 (2.04%) to HK$2.50 on volume of 7.68m shares;
  • Henderson Investments (0097), +HK$0.20 (1.86%) to HK$10.95 on volume of 3.79m shares;
  • Li & Fung (0494), +HK$0.25 (1.72%) to HK$14.75 on volume of 1.69m shares; and
  • China Unicom (0762), +HK$0.10 (1.61%) to HK$6.30 on volume of 8.48m shares.
Regional Indices
Country Name Close +/- % Volume
New Zealand NZSE50 3034.354 -8.41 -0.28% 40.33m
Japan Nikkei 225 11276.59 10.26 0.09% 80601
Korea KOSPI 970.21 1.17 0.12% 246094
Singapore Straits Times 2181.77 9.85 0.45% 0
Hong Kong Hang Seng 13900.26 55.16 0.4% 160m
Malaysia KLSE Comp 865.78 -4.18 -0.48% 0

at 9:16:00 am